Ahmedabad, Mar 21 (UNI) Wockhardt will not incur any losses arising out of the derivatives-hit scenario in the current quarter nor will there be a situation of such losses to occur subsequently.
This was announced by Wockhardt sources here today after the recent media speculation, suggesting that Wockhardt will book significant losses in its first quarter 2008 financial results due to the fluctuations in the derivatives market.
Wockhardt has a significant business presence outside India, mainly in Europe and US, to the extent of 60 per cent of its annual turnover. In the last one year, there has been considerable currency fluctuation. And in such situations, it is normal practice to protect the Company from such currency fluctuations and genuine business related hedging is done on a regular basis, sources stated.
Wockhardt's record of the last few years clearly demonstrates that there have been no losses whatsoever because of business related hedging activities, sources added.
With regard to the Foreign Currency Convertible Bond (FCCB), Wockhardt had raised FCCB for the potential funding of its acquisitions in Europe and USA.
The consolidated profits of Wockhardt for the year 2007 was Rs 385.82 crore, which registered a 60 per cent growth against Rs 241.25 crore in 2006.
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