Wockhardt to repay Rs200 crore in FCCBs; Q1 net profit jumps 95%

Wockhardt recently concluded divestment of its nutrition business to Danone and received Rs1,280 crore, which it plans to use to repay Rs200 crore to its FCCBs holders and exit CDRs

 
Mumbai: City-based Wockhardt, which reported a 95% jump in net profit in the June quarter, said it would repay the remaining Rs200-crore of its outstanding foreign currency debt (FCCBs) within this month itself, reports PTI.
 
The company reported a massive 95% jump in consolidated net profit at Rs378 crore in Q1 of this fiscal, up from Rs194 crore reported in the April-June period the previous fiscal.
 
"We have recently concluded the divestment of our nutrition business to Danone and received Rs1,280 crore. We plan to repay Rs200 crore to our FCCBs holders this month itself and will exit corporate debt restructuring (CDR)," Wockhardt chairman Habil Khorakiwala told reporters here.
 
He said the bond will be paid back with 29% premium.
 
Wockhardt restructured its Rs3,400-crore debt following the global downturn. It subsequently defaulted on FCCBs to the tune of $110 million in 2009, after which, the bondholders dragged it to the Bombay High Court.
 
The company also plans to repay loans worth Rs1,300 crore to banks which it had restructured, Khorakiwala said, adding the company has Rs900 crore cash in hand currently.
 
"The repayments will significantly improve the balance sheet position for the company and our net debt to equity ratio now stands below one," he said.
 
Wockhardt said its sales posted strong growth of 35.3% to Rs1,426 crore during the first June quarter up from Rs1,053 crore, driven by strong sales in the US and European markets, contributing 71% of consolidated revenues.
 
"The growth in bottomline is combination of product portfolio changing and improvement in US business," he added.
 
The EBIDTA stood at Rs502 crore, growing by 61% and represented 10th consecutive quarter of sequential growth, adding in the year-on-year period, it had grown at 35%.
 
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