Key Metrics of Wockhardt
About Wockhardt
Part of Wockhardt.
Sectors
Company details
- Website
- wockhardt.com
- Founded
- 2005
- Registered office
- Wockhardt Research Centre, D-4 Midc, Chikalthana, Aurangabad, In-mh, 431006
- Listed
- NSE: WOCKPHARMA · ₹1,809.60
Operational Areas of Wockhardt
Company summary
Entity details
Compliance
Industry classification
Financials, ratios and risk analysis
Revenue, EBITDA, net profit, net worth, debt and assets for every filing year, 15+ ratios, the financial health score, shareholding, charges and peer comparison are part of the premium plan.
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Vendor checks & payment capacity
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Credit ratings
WatchNegative outlook (CARE)
NoteLatest action: rating withdrawn (CARE, 30 Aug 2024)
Rating history
Rating actions
| Date | Agency | Action | Long term | Short term | Outlook | Rated amount | Rationale |
|---|---|---|---|---|---|---|---|
| 30 Aug 2024 | CARE | Withdrawn | BB+ | A4+ | Negative | — | View |
| 04 Sep 2023 | CARE | Revised (from BBB-) | BB+ | A4+ | Negative | ₹909 Cr | View |
| 06 Jun 2023 | CARE | Reaffirmed | BBB- | A3 | Negative | ₹909 Cr | View |
| 02 Sep 2022 | CARE | Reaffirmed | BBB- | A3 | Stable | ₹250 Cr | View |
| 03 Sep 2021 | CARE | Reaffirmed | BBB- | A3 | Stable | ₹2,516 Cr | View |
| 05 Apr 2021 | CARE | Other | — | — | — | ₹200 Cr | View |
| 27 Aug 2020 | CARE | Revised | BBB- | A3 | Stable | ₹1,008 Cr | View |
| 25 Feb 2020 | CARE | Watch | BB+ | A4+ | — | ₹3,368 Cr | View |
| 30 Sep 2019 | CARE | Revised (from BBB-) | BB+ | A4+ | Stable | ₹1,434 Cr | View |
| 07 Jan 2019 | CARE | Reaffirmed | BBB- | A3 | Negative | ₹2,868 Cr | View |
Credit strengths (CARE, Aug 2024)
+ Diversified product portfolio spread across multiple therapeutic segments
The product portfolio of the company is well diversified marked by its presence in key therapeutic segments including niche segments viz cardiology, dermatology, respiratory, ophthalmology and anti-diabetic etc. Besides, the company also has a basket of well-established brands in majority of the key therapeutic segments. Accredited manufacturing facilities along with R&D focused approach The Company has 11 manufacturing plants (8 in India, and one each in UK, Ireland and Dubai) which have the ne
+ Accredited manufacturing facilities along with R&D focused approach
The Company has 11 manufacturing plants (8 in India, and one each in UK, Ireland and Dubai) which have the necessary international accreditations like UK-MHRA, WHO-GMP, etc. Besides, the company has three research and development centers (one in India at Aurangabad, Maharashtra; one in USA, and one in UK). During FY24, the company’s R&D expenses stood at 5.75% of revenue from operations during FY24 against 5.28% during FY23. Wcokhardt has received for its 6 anti -infective drugs
+ Established marketing network with global presence
Wockhardt is a global pharmaceutical and bio -technology company engaged into developing, manufacturing and marketing of finished dosage and biopharmaceutical formulations, active pharmaceutical ingredients (APIs) and vaccines. The company has a significant presence in UK, USA, European Union and India. It also has market presence in Asian, African, South American, Middle Eastern countries as given below. Exports accounted for about 78% of its total revenue during FY24 (PY: 77%).
+ Assumptions/Covenants: Not applicable
Environment, social, and governance (ESG) risks: Not applicable Applicable criteria Consolidation Definition of Default Liquidity Analysis of Non-financial sector entities Rating Outlook and Rating Watch Manufacturing Companies
+ Brief Consolidated Financials
March 31, 2023 (A) March 31, 2024 (A) Q1FY25 (UA) (₹ crore) Total operating income 2731.00 2800.00 739.00 PBILDT 182.00 172.00 91.00 PAT -621.00 -472.00 -16.00 Overall gearing (times) 0.83 0.89 - Interest coverage (times) 0.60 0.56 1.25
+ Total operating income 2731.00 2800.00 739.00
PBILDT 182.00 172.00 91.00 PAT -621.00 -472.00 -16.00 Overall gearing (times) 0.83 0.89 - Interest coverage (times) 0.60 0.56 1.25 A: Audited UA: Unaudited; Note: ‘the above results are latest financial results available’ Status of non-cooperation with previous CRA: Not applicable Any other information: Not applicable
Credit challenges
− Moderate overall financial profile albeit improving post successful QIP
The overall financial profile of the company has remained moderate in the past however during Q1FY25, it has witnessed improvement. During FY24, the revenue of the company improved marginally by 2.52% to Rs 2800 crore compared to Rs 2731 crore reported during FY23. However, PBILDT margin fell by about 52 bps to 6.14% vis-à-vis 6.66% in FY23 due to increased raw material prices. At net profit level company has reported lossesof Rs 472 crore during FY24 (FY23: Rs 621 crore). The overall
− Significant delay in resolution of regulatory issues
During FY14, Wockhardt received import alert from USFDA for one of its major facilities i.e. Waluj (Aurangabad), followed by regulatory scrutiny at other plants and from UKMHRA on compliance issues for Indian facilities (related to current good manufacturing practices regulations) like Chikalthana, Kadiya, etc. Due to various measures taken by the company, UKMHRA has approved its Chikalthana, Shendra and Kadiya plants. Furthermore, Wockhardt got its Chikalthana facility and Waluj inspected by
− High dependence on regulated markets for Pharmaceutical segment
Wockhardt has its presence in multiple countries across the world. Considering the nature of the product usage and application, and consequent impacts, Wockhardt is required to comply with various laws, rules and regulations and operate under strict regulatory environment. Thus, infringement in any of the law, and any significant adverse change in the import/export policy or
Could lead to an upgrade
• PBILDT margins above 15% on a sustained basis through scaling up of branded business and Generic API coupled with improved revenue share from high margin critical care products and vaccines. • Improvement in overall gearing on an ongoing basis through reduction in overall debt and decrease in working capital borrowing. • Commercialisation of the NCE program, adding to revenue and resulting in improvement in profitability.
Could lead to a downgrade
• Decrease in PBILDT margins below 8% on a sustained basis due to limited expansion in high margin products leading to pressure on debt coverage indicators. • Increase in overall gearing above unity owing to increase in working capital borrowing or major debt funded capex. • Increase in the debt/PBILDT levels over 12.00x on a sustained basis owing to debt -funded capital expenditure or acquisition over the medium term or due to weakening of the credit risk profile.
Agency-reported financials (CARE, 04 Sep 2023)
| Metric | March 31, 2022 | March 31, 2023 | Q1FY24 |
|---|---|---|---|
| Total operating income | ₹3,241 Cr | ₹2,731 Cr | ₹595 Cr |
| PBILDT | ₹309 Cr | ₹181 Cr | ₹16.00 Cr |
| PAT | ₹-,279.00 Cr | ₹-,621.00 Cr | ₹-,136.00 Cr |
| Overall gearing (times) | 0.67× | 0.80× | — |
| Interest coverage (times) | 1.03× | 0.60× | 4.94× |
| Revenue growth (YoY) | — | −15.7% | — |
| EBITDA margin | 9.5% | 6.6% | 2.7% |
| Implied interest cost (EBITDA ÷ coverage) | ₹300 Cr | ₹302 Cr | ₹3.24 Cr |
| PAT margin | −8.6% | −22.7% | −22.9% |
Borrowings & rated debt
Rated limits over time
Facility mix
Rated facilities
| Facility | Type | Previous | Current | Change | Rating | Action | Agency |
|---|---|---|---|---|---|---|---|
| Long Term Bank Facilities | Working capital & bank lines | — | ₹513 Cr | — | BB+ (Negative) | Revised | CARE |
| Short Term Bank Facilities | Working capital & bank lines | — | ₹171 Cr | — | A4+ | Revised | CARE |
| Issuer Issuer | Other | — | ₹0 | — | BB+ (Negative) | Revised | CARE |
| Non Convertible Debentures | Debentures & bonds | — | ₹175 Cr | — | BB+ (Negative) | Revised | CARE |
| Non Convertible Debentures | Debentures & bonds | — | ₹50.0 Cr | — | BB+ (Negative) | Revised | CARE |
Debt instruments
| ISIN | Instrument | Type | Coupon | Issued | Maturity | Amount | Rating | Status |
|---|---|---|---|---|---|---|---|---|
| INE049B07048 | Apr Apr | Debentures & bonds | 13.75% | — | — | ₹0 | — | Withdrawn |
| INE049B07055 | Convertible May May | Debentures & bonds | 13.75% | — | — | ₹0 | — | Withdrawn |
| INE049B07063 | Convertible May May | Debentures & bonds | 13.75% | — | — | ₹0 | — | Withdrawn |
| INE049B07071 | Convertible Oct Oct | Debentures & bonds | 13.75% | — | — | ₹0 | — | Withdrawn |
CARE ratings on record (checked 23 Oct 2026)
| Instrument | Amount | Rating |
|---|---|---|
| BG/LC | — | Withdrawn |
| Cash Credit | — | Withdrawn |
| Issuer Ratings | — | Withdrawn |
| Non Convertible Debentures | — | Withdrawn |
Credit assessment · Manufacturing
Rating Methodology – Manufacturing Companies (Mar 2025) · Standalone accounts · FY 2025-26
Ratios, pillar scores and the indicative rating are part of Premium.
Rating status
| Default | No default on record |
| Issuer cooperation | Cooperating |
| Credit enhancement | None – standalone rating |
| Withdrawal | CARE · 30 Aug 2024 · Rated debt fully repaid / redeemed |
| Next action stable or better (model) | 27% |
| Information on file | 67% · missing: Capex / investment plans, Auditor details, Recent rating review (last 15 months) |
Indicative assessment from public data using the published methodology factors; not a credit rating.
Borrowing & funding lifecycle
- Credit outlook model: 27% chance the next rating action is stable or better
- Current rating BB+ (below investment grade)
- Interest coverage 4.94×
- CARE withdrew its ratings on 30 Aug 2024 — usually after the rated bank loans were repaid or moved to another lender
What happened, step by step
- Aug 2024 — ₹463 cr raised through equity
- Aug 2024 — Full repayment of borrowings
“During FY24, the company has raised Rs 463 crore (net of expenses of Rs 17 crore), by way of issuing additional equity shares at a price of Rs 517 per share.”
- Sep 2022 — ₹748 cr raised through NCDs / bonds
- Sep 2023 — Full repayment of debt
“Successful raising of funds through rights issue and NCD issue WL raised Rs. 748 crore in March 2022 from the open market through rights issue.”
- Aug 2020 — Full repayment of debt
- Apr 2021 — ₹150 cr raised through NCDs / bonds from NCD
“For this company, the initial outlay required is Rs.150 crore (Rs.100 crore for modification of manufacturing process and Rs.50 crore for working capital requirement) which would be funded from NCD issue amounting Rs.150 crore.”
- Sep 2019 — ₹366 cr raised
- Aug 2020 — Full repayment of debt
“The promoters of the company have till date infused Rs 366 crore out of Rs. 500 crore approved.”
Rated limits by facility
Timeline
From the report
During FY24, the company has raised Rs 463 crore (net of expenses of Rs 17 crore), by way of issuing additional equity shares at a price of Rs 517 per share.
From the report
The funds raised through QIP are intended to be utilised for repayment of borrowings in full/part (Rs 110 crore), funding for clinical trials (Rs 210 crore), for working capital requirement (Rs 115 crore) and the balance (about Rs 27.87 crore) for general corporate purpose.
From the report
During FY24 company has generated cash accruals of about Rs 35 crore (after adjusting all non-cash expenses).
From the report
On account of successful QIP, the cash and liquid investments as on March 31, 2024, improved to Rs 506 crore (PY: Rs 90 crore).
From the report
Company has fully repaid the outstanding NCDs to the tune of ~Rs 97 crore.
From the report
Earlier management has indicated, with the repayment of debt the pledge is expected to come down by July 2023 to about 39%.
From the report
During FY23, the company generated cash accruals of about Rs 225 crore.
From the report
However, during Q1FY24, the cash accruals stood at about Rs 10 crore only .
From the report
As indicated by the management the company has, as on June 30, 2023, free cash and bank balance to the tune of about Rs 125 crore.
From the report
During FY24, the company has total repayment obligation of about Rs 243 crore (excluding lease liabilities) out of which about Rs 100 crore has already been paid by June 30, 2023.
From the report
CARE expects that with the available free cash and liquid investments and the expected cash accruals in the range of Rs 150-Rs 200 crore during FY24, the company will be able to comfortably meet its debt obligations.
From the report
Although the overall operating margins remained weak however cash operating margin remained at about 14% after removing non-cash expenses of about Rs 181 crore.
From the report
As indicated by management, with the repayment of debt the same is expected to come down in next two quarters by about 26%.
From the report
During FY23 company generated cash accruals of about Rs 225 crore.
From the report
Company is expected to have cash accruals in the range of about Rs 250 crore in FY24 and Rs 350 crore in FY25.
From the report
During FY24, company has total repayment obligation of Rs 243 crore of which Rs 25 crore has been already paid by May 2023.
From the report
Average of maximum monthly utilisation of fund-based limits during last 12 months stood at around 95% and average monthly utilisation of non-fund-based limited during last 12 months ending April 2023 stood at around 43%.
From the report
Further CARE Ratings also factors the liquidity comfort provided by WL’s management stating that the repayments and interest obligationspertaining to unsecured loans availed by WL could be deferred if in case there arises the requirement of funds for the business operations or meeting its debt obligations.
From the report
Successful raising of funds through rights issue and NCD issue WL raised Rs. 748 crore in March 2022 from the open market through rights issue.
From the report
WL also issued NCDs worth Rs. 250 crore in FY22 in four tranches through private placement.
From the report
The Company availed unsecured loan facilities amounting to Rs. 1348 crore from related parties and repaid Rs. 1302 crore of loans to related parties.
From the report
Apart from this, the company has also raised Rs.200 crore of NCDs during Q1FY22 and plans to raise another Rs.50 crore during Q2FY22 for working capital requirement at Indian manufacturing facility for upcoming vaccine manufacturing contracts.
From the report
Moreover, on a consolidated level, WL had free cash and cash equivalents of Rs.237.69 crore as on March 31, 2021, providing additional liquidity cushion.
From the report
The NCD issue plan for balance Rs.50 crore is contingent upon company’s funding requirement.
From the report
For this company, the initial outlay required is Rs.150 crore (Rs.100 crore for modification of manufacturing process and Rs.50 crore for working capital requirement) which would be funded from NCD issue amounting Rs.150 crore.
From the report
The company availed moratorium for term loan repayments from March 2020 till August, 2020 (from Indian Lenders for loans availed in INR) as per RBI guidelines and the same was approved by lenders.
From the report
Moreover, WL on consolidated level had free cash and cash equivalents of Rs.237.30 crore as on December 31, 2020 providing additional liquidity cushion.
From the report
The cash flow received from DRL deal will be deployed towards increasing scale of operations, repayment of debt obligations falling in FY21 and expenses towards R& D to expedite launch of NCE product (products which have QIDP status).
From the report
Moreover, WL on consolidated level had free cash and cash equivalents of Rs.219.34 crore as on March 31, 2020 providing additional liquidity cushion.
From the report
The company availed moratorium for term loan repayments from March 2020 till August, 2020 (from Indian Lenders for loans availed in INR) as per RBI guidelines and the same was approved by lenders.
From the report
This slump sale will help company in having sufficient liquidity to increase the scale of operations, repay the debt and also allow it to spend more on Research and Development which for the time being was being curtailed to an extent.
From the report
The profitability margin will be slightly affected by sale of 62 products, however with the company developing new products and further increase in scale of operations with existing product portfolio, WL will be able to compensate the decline in profitability. 1 Complete definitions of the ratings assigned are available at www.careratings.com and in other CARE publications. 1 CARE Ratings Limited Press Release Detailed description of the key rating drivers Key Rating Weakness Weakened liquidity position; however, expected to improve with the sale of BU During Q3FY20, the company was successful
From the report
Accordingly, gross cash accruals also reduced in FY19 to Rs.144 crore vis-a vis Rs.542 crore (includes exceptional expense of Rs.358 crore) in FY18.
From the report
The promoters of the company have till date infused Rs 366 crore out of Rs. 500 crore approved.
From the report
As on June 30, 2019, WL had a total cash of Rs.187 crore against cash balance of Rs 397 crore as on March 31, 2019. [The promoters incrementally have infused funds in Q1FY20 to tide over temporary cash flow mismatches.] Fund based working capital limits utilization on an average for the last 12 month period ending June 2019 stood at 86% signifying modest cushion.
From the report
Accordingly, gross cash accruals also reduced in FY19 to Rs. 144 crore vis-a vis Rs.542 crore (includes exceptional expense of Rs. 358 cr) in FY18.
From the report
WL reported cash loss of Rs.542 crore in FY18 vis-à-vis cash loss of Rs.109 crore in FY17.
From the report
The increase in loss was largely due to one-time settlement cash outflow of Rs.358 crore on account of supply contract with Cephalon Inc, (Cephalon) an affiliate of Teva Pharmaceuticals USA, Inc.
From the report
Consequently, average fund-based working capital utilization also remained high at around 68% on an average (max at 70%) during the 12-month period ended September 2018.
From the report
Promoters have brought in Rs.250 crore (in December 2018) in WL in the form of preference shares which shall aid liquidity in the near term.
Lender names, bank charges and audited borrowings are part of Premium.
Built from MCA charges, ICRA/CARE rating reports and audited accounts. The borrowing view is an estimate, not a lender's credit decision.
Registered office and contact
Directors and key people
Directors are read from the MGT-7 annual return and AOC-4 signatories.
Competitors of Wockhardt
Top competitors by location
| Company | Description | Domain | Founded | Location |
|---|---|---|---|---|
 Dr. Reddy's Laboratories |
Part of Dr. Reddy's Laboratories. | drreddys.com | 1984 | India |
 Sun Pharmaceutical Industries |
Large Pharma Companies · Pharmaceuticals & Healthcare | sunpharma.com | 1983 | Vadodara, India |
 Aurobindo Pharma |
Part of Aurobindo Pharma. | aurobindo.com | 1986 | Hyderabad, India |
 Cipla |
Part of Cipla. | cipla.com | 1935 | Mumbai, India |
 Zydus Lifesciences |
Large Pharma Companies · Pharmaceuticals & Healthcare | zyduslife.com | 1952 | Ahmedabad, India |
 Glenmark Pharmaceuticals |
Part of Glenmark Pharmaceuticals. | glenmarkpharma.com | 1977 | Mumbai, India |
| Part of Biocon. | biocon.com | 1978 | Bangalore, India | |
 Torrent Pharmaceuticals |
Formulations & Contract Manufacturing · Pharmaceuticals & Healthcare | torrentpharma.com | 1959 | Ahmedabad, India |
 Divi's Laboratories |
Formulations & Contract Manufacturing · Pharmaceuticals & Healthcare | divislabs.com | 1990 | Hyderabad, India |
 India Glycols |
Capital Goods & Power Equipment · Heavy Engineering & Capital Goods | indiaglycols.com | — | Udham Singh Nagar, India |
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Charges (secured borrowings)
0 registered charges. Lenders, amounts and dates are part of the premium plan.
Statutory auditors
Auditors are read from the AOC-4 auditor's report section.
Group companies
Part of Wockhardt
Business activities and related parties
Pharmaceuticals
Filings
No filings on record yet.