Ranbaxy Laboratories has suffered heavy setback, before foreign exchange adjustments, mainly due to US FDA's actions in USA. It incurred a net loss, before foreign exchange adjustment, of Rs 362.56 crore during the second quarter ended June 2009 as against a profit of Rs 179.72 crore in the corresponding period of last year. The company shown aggregate foreign exchange gain of Rs 1,038 crore as against Rs 155.97 crore in the last period. With this gain its net profit worked out to Rs 675.45 crore as compared to Rs 23.73 crore in the similar period of last year.
Its profit after interest and depreciation, but before taxation and adjustments, declined to Rs 1.81 crore as against Rs 175.18 crore in the second quarter of last year.
The company's standalone net sales declined by 17.3 per cent to Rs 1006.47 crore during the second quarter ended June 2009 from Rs 1216.92 crore in the similar period of last year mainly due to lower exports. Its exports declined by 35.4 per cent to Rs 540.32 crore from Rs 836.08 crore. However, its domestic sales increased to Rs 469.60 crore from Rs 389.20 crore. Other income moved up to Rs 115.12 crore from Rs 72.07 crore, representing a growth of 59.7 per cent.
For the first half ended June 2009, Ranbaxy's net sales declined by 17.9 per cent to Rs 1,809 crore from Rs 2,204 crore in the last half of previous year. The company's shown a net loss of Rs 102.33 crore as against a profit of Rs 127.15 crore. Its exports declined by 33.9 per cent to Rs 980.98 crore from Rs 1484.02 crore.
Atul Sobti, CEO and managing director, said, "Challenges have continued this quarter for the global economy and the pharmaceutical industry, affecting liquidity and demand across geographies. Our balanced market mix with a clear focus on emerging markets has helped us mitigate these pressures. We have improved operationally over the last quarter despite ongoing challenges. We are now also focused on delivering synergies through our hybrid business model with Daiichi Sankyo, to build lasting value."