Wockhardt Ltd's Q2FY19 consolidated net loss widens to Rs22.8cr yoy : In-line with Estimates

The company’s consolidated revenue stood at Rs1,125.68cr, up 10.11% yoy and 11.71% qoq.

Nov 12, 2018 05:11 IST India Infoline Research Team

Wockhardt Ltd Q2FY19

Consolidated Results Q2FY19: (Rs. in cr)

Q2FY19 YoY (%)
Revenue 1,125.68 10.1
EBITDA 67.40 216.4
EBITDA Margin (%) 6 391
Net Loss (adjusted) 22.77 [583.8]
***EBITDA margin change is bps
Wockhardt’s revenue in Q2FY19 grew 10.1% yoy to Rs1,125.7cr mainly due to the rise in revenue from US and emerging markets as well as rupee depreciation. EBITDA grew by 216.4% yoy to Rs67.4cr in Q2FY19 vs. Rs21.3cr in Q2FY18. EBITDA margins stood at 6% in Q2FY19 vs. 0.4% in Q1FY19 and 2.1% in Q2FY18. Net loss, however, widened from Rs3.3cr in Q2FY18 to Rs22.8cr in Q2FY19. The improvement in the EBITDA was on account of revenue growth as well as cost optimization during the quarter. Company, however has continued to incur losses due to costs associated with on-going remedial measures.

Other highlights
  • India Business stood flat at Rs455cr in Q2FY19 vs. Rs452cr in Q2FY18. Two products were launched during the quarter. India Business contributed 40% of the Global Revenue
  • US Business grew by 18% yoy in Q2FY19 due to new product launches and increased market share of some products. US Business contributed 17% of the global revenue.
  • Emerging Market Business grew 68% yoy to Rs144cr in Q2FY19, it contributed 13% of the global revenue.
  • UK Business declined by 1% yoy while Irish Business grew 11% yoy in Q2FY19.
  • Gross margin stood at 56.6% in Q2FY19 vs. 57.5% in Q1FY19 and 53.9% in Q2FY18.
  • Core R&D expenditure was at Rs82cr (~7% of sales) in Q2FY19.

Technical View:

Wockhardt Ltd is currently trading at Rs. 561.80, up by 40.55 points or 7.78% from its previous closing of Rs. 521.25 on the BSE.
The scrip opened at Rs. 525 and has touched a high and low of Rs. 566.80 and Rs. 525 respectively. So far 32,36,390 (NSE+BSE) shares were traded on the counter. The stock is currently trading below its 200 DMA.

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