Ranbaxy Laboratories, a leading pharma of India and subsidiary of Daiichi Sankyo of Japan, has suffered major setback during the first quarter ended March 2011 and its net profit nosedived by 68.3 per cent to Rs.304.39 crore from Rs.960.58 crore in the corresponding period of last year mainly due to lower sales in other markets and lower other operating income. Further, there was net foreign exchange loss of Rs.20.57 crore during the first quarter of current year as against a gain of Rs.517 crore, which impacted its bottom line during the quarter ended March 2011..
Its consolidated net sales declined by 13.7 per cent to Rs.2,143 crore from Rs.2,481 crore. Though its sales in India increased by 18.5 per cent, the same were declined by 19.4 per cent to Rs.1,698 crore in the other markets from Rs.2,106 crore. Its sales in North America touched to Rs.769 crore and that in USA reached at Rs.702 crore. In Europe, it achieved sales growth of 10 per cent to Rs.337 crore and that in Asia Pacific region improved by 17 per cent to Rs.76.3 crore.
Ranbaxy's other operating income declined sharply by 86.5 per cent to Rs.37.92 crore from Rs.280.33 crore in the corresponding period of last year. Its EBDITA also declined by 59 per cent to Rs.403.17 crore from Rs.983.91 crore. Its employees' cost moved up by 9.4 per cent to Rs.417.05 crore from Rs.381.16 crore. The provision for depreciation declined to Rs.73.59 crore from Rs.100.50 crore.
Commenting on the business results, Arun Sawhney managing director, said, “We have started the year on a positive note and I am pleased with the sustained performance of key geographies as they continued to deliver superior sales. Leadership initiatives such as Viraat, in India, and a change in business models in some geographies, have also provided further impetus.”