The foreign exchange loss put pressure on financial working of Ranbaxy Laboratories during the third quarter ended September 2011 and it incurred a hefty net loss of Rs.464.58 crore as against net profit of Rs.307.94 crore in the similar period of last year. Its consolidated net sales increased by 7.7 per cent to Rs.2023 crore from Rs.1,877 crore. Its earnings per share worked out to negative Rs.11.02 as compared to Rs.7.32 in the last period. Its EBDITA, however, improved by 19.1 per cent to Rs.276.12 crore from Rs.231.87 crore. With poor performance, Ranbaxy scrip declined by Rs.21.10 from its previous day close and closed at Rs.475.40 on BSE or 4.3 per cent.
The company's profitability below EBDITA line was impacted adversely owing largely to the requirement to mark-to-market the long dated derivative transactions entered into by the company in earlier years and which remain currently outstanding as well as on the forex denominated loans.
In India, its growth was 18 per cent compared to 15 per cent for the Indian pharma market. Its sales in India increased to Rs.516 crore from Rs.484 crore in the similar quarter of last year. The sales in North America reached at Rs.472 crore with base business sales continued to be healthy. Emerging markets contributed 60 per cent of total sales and Developed markets contributed 33 per cent to sales. Its sales in Europe improved by 21 per cent to Rs.331 crore. The branded generics markets of Romania, South and Central Europe had strong growth when compared to the previous year. In France business recovery was healthy. Its CIS sales increased by 22 per cent to Rs.146 crore. Asia Pacific sales reached at Rs.127 crore and that in LATAM were Rs 75 crore.
The company launched Letrozole tablets, the generic version of Femara, on Day-1 in the UK, France and Romania. It also launched Esomeprazole tablets, the first generic version of Nexium of AstraZeneca in the UK. The OTC business division launched 'Volini Duo', India's first approved two-in-one pain killer. The company made 55 dosage form filings and received 32 approvals. For APIs, it made 38 DMF during the quarter ended September 2011.
Commenting on the business results for the quarter, Arun Sawhney, CEO & managing director, said, “Ranbaxy's focus on long term improvement of its base business and margins has begun to reflect in the company's performance. This is resulting from an increased focus on strengthening manufacturing processes while re-aligning our products and markets for value creation.”
For the first nine months ended September 2011, Ranabxy's consolidated net sales declined by 3.6 per cent to Ra. 6,220 crore from Rs.6,449 crore in the corresponding period of last year. Its net profit declined sharply to Rs.83.04 crore from Rs.1,594 crore mainly due to foreign exchange loss of Rs.286.37 crore as against gain of Rs.304.32 crore in the previous period. Its EBDITA for the nine months declined by 43 per cent to Rs.1,030 crore from Rs.1,811 crore.
On standalone basis, its net sales for the quarter increased by 19.8 per cent to Rs.1,349 crore from Rs.1,125 crore in the similar period of last year. It incurred a standalone net loss of Rs.439 crore as against a net profit of Rs.222 core.