Wockhardt Ltd. has declared encouraging results for 1QFY03. While sales have grown by more than 27%, net profit forged ahead by 37%. The impressive performance in sales is on the back of strong growth in export formulations and key brands in the domestic market. The peformance of the company is above our expectations of 20% growth.
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On a consolidated basis, with the company's UK subsidiary -- Wallis Lab -- sales for the quarter registered a growth of 21% to Rs 1.9 bn. The growth was driven by focus on key strategic products in the domestic market, which have recorded more than 50% growth during the period. Overall. domestic sales posted a growth of 22%, against the industry average of 11%. Exports jumped 46% mainly on the back of 110% rise in formulations export. Formulations now constitute 35% of total exports on a trailing 12-month basis. During the quarter, the company also firmed up a multi-product development, supply, sales and marketing alliance with Ranbaxy Laboratories Ltd.
During the quarter, the company took over entire equity holding in Wockhardt Rhein Biopharm Ltd. (WRBL) WRBL was a joint venture company between Wockhardt Ltd. (WL) and Rhein Biotech GmbH, Germany, each holding 50% of the capital. WRBL is now a wholly owned subsidiary of Wockhardt.
The biotech products of the company continue to log attractive growth rates. Wockhardt is expecting one product introduction every year from its biotech division. Besides these, the product lineup of the company seems to be strong with various combinational vaccines, typhoid vaccine and other drugs in lifestyle therapeutics (chronic segment). The company is consciously shifting its revenue mix towards chronic segment where growth and margins are higher compared to acute segment.
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