Ranbaxy Laboratories, a subsidiary of Daiichi Sankyo Co of Japan, has suffered heavy setback during the second quarter ended June 2011 as its consolidated net profit declined by 25.3 per cent to Rs.243.24 crore from Rs.325.71 crore in the corresponding period of last year on account of lower international revenue. Its EBDITA also declined sharply by 56.4 per cent to Rs.181.65 crore from Rs.416.83 crore. In line with BSE Indices, Ranbaxy scrip also moved down by Rs.13.30 today and closed at Rs.520.50 on BSE.
The foreign exchange gained amounted to Rs.111.79 crore during the quarter under review as against foreign exchange loss of Rs.233.68 crore which impacted the bottom line. Further, profit on sales of investment of Rs.217.76 crore in the last period pushed its bottom line.
The company's consolidated global net sales declined by 1.8 per cent to Rs.2,054 crore from Rs.2,091 crore in the similar period of last year. Its domestic sales improved by 11.4 per cent to Rs.501 crore from Rs.430 crore. Project Viraat, Ranbaxy's initiative for the India market has gained ground with growth rate of 18 per cent as compared to 15 per cent.
However, its international revenues declined by 6.5 per cent to Rs.1,558 crore from Rs.1,665 crore. The company's base sales, i.e. sales without accounting for exclusivities have continued to strengthen. Its other operating income also declined by 25.2 per cent to Rs.38.63 crore from Rs.51.67 crore. Emerging markets contributed 57 per cent of total sales and developed markets 34 per cent. API and others accounted for 9 per cent to total sales.
Sales in North America reached at Rs.497.7 crore aided by First to File sales during the quarter under review. Its sales in Europe increased by 15 per cent to Rs.355.7 crore with significant growth in sale at Romania. The Asia Pacific region recorded sales of Rs.104 crore, a growth of 24 per cent and CIS region achieved growth of 5 per cent to Rs.95 crore. The company achieved strong sales growth in Africa of 33 per cent and its sales reached at Rs.230 crore.
Arun Sawhney, managing director, said, “We have consciously worked towards strengthening our base business on the one hand and successfully delivering on multiple first to file opportunities on the other.”
The company continued to co-operate with the US FDA and the Department of Justice for a comprehensive solution to its regulatory issues. Negotiations with the regulators are progressing well. During the quarter ended June 2011, ten regulatory agencies from across the globe inspected its API and Dosage Form facilities, in multiple locations. He company has filed an ANDA with US FDA to market Oxycondone Hydrochloride extended-release tablets in the 30, 40, 60, and 80 mg strengths. The company filed 38 DMFs and received 26 approvals and its total submissions reached at 33 DMF during the quarter.
For the first half ended June 2011, Ranbaxy's consolidated net profit declined by 57.4 per cent to Rs.548 crore from Rs.1286 crore in the similar period of last year. Its consolidated net sales also declined by 8.2 per cent to Rs.4,197 crore from Rs.4,571 crore. With lower profits, its earnings per share for the first half declined to Rs.30.28 from Rs.35.57 in the last period.