Wockhardt posts net profit at Rs9cr in Q3FY20; stock jumps 15%

Wockhardt posts net profit at Rs9cr in Q3FY20; stock jumps 15%
Wockhardt Limited, the Pharmaceutical and Biotechnology major, reported a consolidated net profit of Rs9cr in Q3FY20 as against a net loss of Rs71cr.  The company’s revenue came in at Rs869.2cr vs. Rs1,045.7cr.

The business performance of the Company during the quarter ended December 31, 2019, showed a marked improvement with sales growth of over 8% compared to the previous quarter. EBITDA for the quarter showed a substantial improvement from Rs19cr in Q3FY19 to Rs109cr in Q3FY20.

9MFY20 EBITDA also showed an improvement from Rs100cr to Rs208cr over the previous year. While the company has been reporting steady EBITDA qoq, for the first time in the past 3-years, the company bounced back into Profit (PAT of Rs9cr) owing to a marked improvement in Operational Performance & Cost rationalisation.

The sales of the company during Q3FY20 were at Rs869cr, lower by 17% as compared to the corresponding quarter of the previous year.

The focus in strategic R&D initiatives of the Company in the global arena continued to remain one of the key priorities. Such strategic R&D expenses though meant for the future are expensed off.

Stock view:
Wockhardt Ltd is currently trading at Rs339.85, up by Rs40.8 or 13.64% from its previous closing of Rs299.05 on the BSE.
The scrip opened at Rs299 and has touched a high and low of Rs345.80 and Rs298.65 respectively.

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