Ranbaxy Laboratories achieved better performance during the second quarter ended June 2006 due to improved exports, cost cutting measures and reduction in R&D expenditure. Its net profit went up by 30.5 per cent to Rs 99.83 crore from Rs 76.49 crore in the corresponding period of last year.
The company's standalone net sales for the quarter increased by 9.5 per cent to Rs 1043.73 crore from Rs 952.78 crore. The consolidated net sales increased by 7.4 per cent to Rs 1471 crore from Rs 1370 crore and its consolidated net profit went up by 19.5 per cent to Rs 121.10 crore from Rs 101.30 crore.
The earning per share with face value of Rs 5 per share worked out to Rs 2.66 for the quarter ended June 2006 as compared to Rs 4.11 for the face value of Rs 10 per share in the similar period of last year.
For the first half ended June 2006, its sales amounted to Rs 2722 crore as compared to Rs 2486 crore in the corresponding half of last year, registering a growth of 9 per cent. EBDIT improved by 36 per cent to Rs 407 crore from Rs 299 crore. This represents an EBDIT margin of 15 per cent in first half of 2006 versus 12 per cent in the last period. The net profit improved by 11.9 per cent to Rs 192.5 crore from Rs 172.1 crore.
Commenting on the business results, Malvinder Mohan Sings, CEO and MD, said, "We have delivered better performance from quarter to quarter and our business has strengthened with gains in market share and improved margins. We see this trend accelerate as we move forward. We continue to control and reduce our costs to become more competitive and have increased our footprint in Europe, and Japan, both through our own presence and though significant and strategic acquisitions. A judicious mix of organic and inorganic growth will provide the necessary momentum to our future plans."
The company's standalone domestic sales during the second quarter ended June 2006 remained same at Rs 338 crore. However, its international sales increased by 11.5 per cent to Rs 718 crore from Rs 644 crore. The company reduced its staff cost to Rs 80.59 crore from Rs 84.57 crore. Similarly the R&D expenditure declined sharply to Rs 81.47 crore from Rs 112.06 crore.
Ranbaxy's sales in US increased by 8 per cent to US$ 89 million. The overall marketing share of the company in the US generic market was 15.2 per cent in second quarter of 2006, up from 12.2 per cent in last period. The company received several approvals from US FDA and its cumulative ANDA approvals to date stand at 113, with 56 ANDAs pending approval with US FDA.
The company's sales in Europe declined by 17 per cent to $ 46 million in the Q2 due to the tight market conditions in the UK and lower primary sales in the Central European markets. UK recorded sales of $ 9 million, a sharp decline of 24 per cent. The sales in BRICS countries improved by 11 per cent to $ 112 million.