Wockhardt slumped 6% to Rs 389.50 on Friday after it declared a 43.8% drop in net profit for Q4 ended 31 December 2002.
Early trades saw volumes of 3,950 shares manifesting on the counter on BSE.
The stock is usually thinly traded, but has been witnessing some volatility lately, though within a band Rs 500-Rs 414. With Friday's fall, the stock has breached the lower end of that band.
Wockhardt has posted a sharp 43.8% fall in Q4 ended 31 December 2002 net profit to Rs 18.30 crore compared to Rs 32.60 crore in the corresponding period last year. Total income proved flat at Rs 178.10 crore (Rs 1.78 billion) from Rs 178.40 crore (Rs 1.78 billion).
For the full year 2002 (year ended 31 December 2002), net profit rose just 6.5% to Rs 108.90 crore from Rs 102.20 crore (Rs 1.02 billion). Total income increased 13.8% to Rs 743.30 crore (Rs 7.43 billion) from Rs 653 crore (Rs 6.53 billion).
On a consolidated basis, the Wockhardt group's net profit has declined 2.9% in FY 2002 to Rs 105 crore (Rs 1.05 billion) from Rs 108.20 crore (Rs 1.08 billion). Total income improved 9.5% to Rs 810.60 crore (Rs 8.1 billion).
The setback in Q4 results is being blamed on the restructuring of the company's field force after it severed relations with the Federation of Medical Representatives Association of India.
Wockhardt's focus is on chronic therapies, mainly biotech products in diabetics and oncology, with a thrust on vaccines and generics with delivery-based products. Market men feel this thrust on the high margin business holds the key to Wockhardt's future growth.
In 2000, the company restructured itself, spinning off its parenterals business and the Rs 100-crore (Rs 1 billion) agribusiness into a separate company, Wockhardt Life Sciences. With this change came a shift away from a product portfolio dominated by low-margin acute therapy products - anti-infectives and the pain-relievers - towards biotech and high-margin products.
Wockhardt plans to introduce two new products - recombinant human insulin and Interferon alpha 2b - in the domestic market this year.
Meanwhile, Wockhardt's board has recommended a dividend of Rs 6.50 per share or 65% for FY 2002.
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