Neuland Laboratories reported a disappointing set of Q1 earnings and the stock is trading sharply lower. In an interview to CNBC-TV18, Suchet Rao, Vice Chairman and CEO of the company spoke about the results and his outlook for the company.
There was an impact because of the goods and services tax (GST) issue in terms of uncertainty of deliveries for our customers, he said.
Our order book is strong. With some stabilisation in the dollar and the GST behind us, we will see the business get back to normal in the subsequent quarters, he added.
We had one inspection from United States Food and Drug Administration (US FDA) and one from European Directorate for the Quality of Medicines (EDQM). We had received two minor observations from US FDA for which we responded, they were accepted and we also received the establishment inspection report (EIR), said Rao.
The EDQM audit got completed in June with no critical or major observations. The company is in the process to respond to it.