Wockhardt clears the debt mess, posts 95% YoY growth in Q1

Mumbai based Wockhardt pharma shares hit a 52 week high, as a robust growth in the US and UK pharma market helped the company record a 95% growth in its net profits at Rs 378 cr in the quarter ended June 2012. The sale of its nutrition business to french dairy giant Danone helped the company clear of its financial liabilities, as it bettered the previous year's loss of Rs 194 cr. Wockhardt sold the nutrition business for Rs 1280 cr, which has helped it to bring the debt-equity ratio under 1.

The company's consolidated revenues grew by 35% at Rs 1426 cr as against Rs 1053 cr last year, during the same quarter. The earnings before interest, depreciation and tax ( EBITDA) of the company improved by 35% at Rs 5012 cr.

"This sustained EBITDA and PAT performance, both in terms of value and margins, now ushers Wockhardt amongst the Top 3 Best Performing Indian Pharma companies", Wockhardt said in a filing to the exchanges.

One of the prime drivers of Wockhardt's performance was the exponential growth of 78 % (45 % in $ terms) in the US business. It capitalised on the launch of generic Stalevo, a drug used for Parkinson's disease. Wockhardt had first to file status for this drug. It also managed to crack the tough UK business by growing at 31% and (11% in UK pound), which was due to the launch of generic version of Pfizer's cholesterol lowering blockbuster drug Lipitor.

Wockhardt which is currently under corporate debt restructuring (CDR) is in talks with banks to get out the debt restructuring cell. It said it is working with banks to work out the modalities.

Wockhardt stock ended at Rs 1053 cr up by 4%