Wockhardt's Q2 profit more than halves, hit by export 'ban' from US, UK

Oct 25 2013, 17:10 IST
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Wockhardt's profit hit by curb on shipping medicines to the US and Britain from one of its plants after their health regulators identified quality deficiencies. Wockhardt's profit hit by curb on shipping medicines to the US and Britain from one of its plants after their health regulators identified quality deficiencies.
SummaryWockhardt's sales during September quarter stood at Rs 1,196.97 crore.

Pharmaceuticals major Wockhardt Ltd today reported 69.46 per cent decline in its consolidated net profit for the second quarter (Q2) ended September 30, 2013 at Rs 138.50 crore, hit by curbs (virtual ban) on shipping medicines to the United States and Britain from one of its plants after their health regulators identified quality deficiencies.

The company had posted a consolidated net profit of Rs 453.55 crore in the same quarter last fiscal, Wockhardt Ltd said in a filing to the BSE.

Net sales during the period under review stood at Rs 1,196.97 crore as against Rs 1,347.44 crore in the year-ago quarter.

The company also said its Board of Directors have declared an 100 per cent interim dividend of Rs 5 per share for the financial year 2013-14.

Shares of Wockhardt were trading at Rs 457.85 on the BSE in late afternoon trade, down 0.43 per cent from its previous close.

Wockhardt has previously said the US ban on the Waluj factory, reported in May, could cost the company about $100 million in sales a year. Earlier this month, UK's health regulator has imposed restrictions on import of medicines made at Wockhardt Ltd's unit at Kadaiya in Nani Daman and Chikalthana facility in Maharashtra for violation of norms. In July this year, UK had imposed an import alert on Wockhardt's export-oriented plant at Waluj in Maharashtra.

The United States and Europe accounted for three-quarters of the company's revenues in the last fiscal year that ended in March.

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