Net Profit jumps 300% to Rs. 50 crores in Fourth Quarter
Dividend enhanced to 75%
Proposes 1 Bonus Share for every 2 Shares
Recommends Share Split

Mumbai, February 12, 2004

Pharmaceutical major Wockhardt Limited announced its consolidated financial results for the fourth quarter of 2003. Net profit at Rs. 50 crores recorded a 300% improvement over the fourth quarter of 2002. Operating margins more than doubled to 19.9% during the quarter. Sales grew 53% to Rs.297 crores.

The board of Wockhardt, which met today, proposed an issue of bonus shares on the basis of one new share for every two existing shares and an enhanced 75% dividend. It also recommended splitting the face value of shares from Rs.10 to Rs.5, subject to the approval of shareholders.

“The bonus and share split will boost liquidity and marketability of shares and will empower our loyal shareholders,” Wockhardt chairman Mr. Habil Khorakiwala said. “From the management’s point of view, the bonus issue reflects the robust performance in 2003 and its confidence to perform in the emerging global pharmaceutical market. Our US business grew over 200% in 2003 and we hope to do well this year as well,” he added.

“Wockhardt moved into a new orbit this year,” Mr. Khorakiwala said, describing the company’s performance during 2003. Wockhardt’s international business surged ahead of domestic business during the year. It became Asia’s first and the world’s fourth manufacturer of recombinant insulin. And the company acquired CP Pharmaceuticals of UK in one of the industry’s largest overseas acquisitions this year.

Wockhardt spent Rs.60 crores on R&D during the year, amounting to 8% of turnover.

Consolidated annual sales amounted to Rs.980 crores in 2003, showing a 21% growth over 2002. Net profit for the year improved by 36% to Rs.143 crores. Operating profit rose 28% to Rs.179 crores and operating margins expanded by 100 basis points. With the acquisition of CP Pharmaceuticals in July, international business now accounts for 57% of Wockhardt’s consolidated revenues. India contributes 43% to total revenues, followed by European Union at 37% and the US and rest of the world at 10% each.

Domestic Business
Wockhardt’s domestic business grew 16% during the fourth quarter. Wosulin, Wockhardt’s recombinant insulin, has been well received in the market. Power brands contributed to 75% of the domestic sales. Spasmo Proxyvon emerged as the first Wockhardt brand to cross the Rs.50-crore sales milestone and join the ranks of Top 50 brands as per ORG. Wepox became the largest erythropoietin brand in volume terms and Winofit emerged as India’s largest prescribed anti-oxidant. Wockhardt became the first domestic company to get exclusive marketing rights (EMR) for a novel anti-infective product.

International Business
Wockhardt’s international business grew by 64% in 2003, driven by a 210% spurt in formulation sales in the US. The two leading markets -- US and the European Union - contributed as much as 85% to international business. The integration of CP Pharmaceuticals with Wockhardt in manufacturing, supply chain and other operational areas is in full swing and promises to raise efficiency and put the company on the fast growth track. In the active pharmaceutical ingredients business, which makes up 15% Wockhardt’s international business, the company emerged as the world’s second largest player in Vitamin B12.

Wockhardt Limited is a research and technology-based pharmaceutical company and a front runner in biotechnology. Wockhardt has an active multi-disciplinary R&D programme employing over 350 scientists. Wockhardt already has three successful biotechnology products in the market - Biovac-B (Hepatitis B vaccine), Wepox (recombinant erythropoietin) and Wosulin (recombinant insulin). With the recent acquisition of CP Pharmaceuticals of UK, Wockhardt has joined the ranks of the top 10 generic companies in Britain and has become the largest Indian pharmaceutical company in UK.

View Consolidated Audited Financial Results for the Quarter and Year ended 31st December 2003