Q2 earnings hit by recent regulatory actions: Wockhardt

Q2 earnings hit by recent regulatory actions: Wockhardt As the drug regulators tighten their noose, Wockhardt stock has been volatile and investors are wary of the company\'s recovery. Equity Trading Account Trading Acc with Assured Gifts. Start Trading Today with Religare. ReligareOnline.com/EquityTrading Ads by Google India Business Hour at 09:00 pm COMMENTS (1) . SHARE . EMAIL . PRINT . A+ For Chikalthana, as far as US is concerned, we have provided our responses, they have not taken any action as of now. Habil Khorakiwala Founder Chairman & Group CEO Wockhardt Limited Troubled drug maker Wockhardt reported a weak set of Q2 earnings . It posted a 70 percent drop in its profit after tax at Rs 138 crore and an 11 percent drop in consolidated revenues at Rs 1197 crore on a year on year basis because of product recalls and import ban on its facilities from the US and UK regulators on non GMP compliance. As the drug regulators tighten their noose, Wockhardt stock has been volatile and investors are wary of the company\'s recovery and this was evident during the company\'s investor call as prominent investor Rakesh Jhunjhunwala quizzed Wockhardt chairman Habil Khorakiwala about the company\'s remediation plans. Below is the edited transcript of the interview Q: You have various regulatory problems in various plants. So you think to resolves all this it will take around 15 months? A: In terms of our corrective and remediation plan it will take about six months, I feel. Then we will apply for re-inspection and then it depends on the regulatory agency. Probably the entire process will take upwards of a year from now. It could be earlier than that or it could take longer than that. The situation is very uncertain and it is very difficult to predict. Q: Today Waluj facility is under an import alert, remediation plan is under progress and when it is complete and we are ready, we will ask FDA for a re-inspection. Is it the same for Chikalthana? A: That's right. For Chikalthana, as far as US is concerned, we have provided our responses, they have not taken any action as of now. Q: So we are able to export to the US from Chikalthana? A: Yes we are exporting to the US from Chikalthana. For the UK market, we can export 10 out of the 22 products that are registered there, which has an annualized value of 3 million pounds. On October 25, 2013, Wockhardt closed at Rs 455.35, down Rs 4.5, or 0.98 percent. The 52-week high of the share was Rs 2166.05 and the 52-week low was Rs 344.15. The company\'s trailing 12-month (TTM) EPS was at Rs 51.43 per share as per the quarter ended September 2013. The stock\'s price-to-earnings (P/E) ratio was 8.85. The latest book value of the company is Rs 74.56 per share. At current value, the price-to-book value of the company was 6.11.


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