India's top 10 pharmaceutical companies, with sales above Rs.4,000 crore, have reported a consolidated net sales growth of 21 per cent during the year 2011-12 and EBDITA growth of over 25 per cent. However, their net profit after forex adjustments declined sharply by 46.3 per cent to Rs.4,452 crore from Rs.8,288 crore in the previous year. This was mainly due to provisions made by Ranbaxy in connection with the US Department of Justice and forex adjustments.
With more focus on global markets, limited exclusivity for some products after patent expiration and acquisitions and mergers, the ranking of these companies changed significantly during 2011-12. Ranbaxy Laboratories, a subsidiary of Daiichi Sankyo of Japan, and Dr Reddy's Laboratories (DRL) have successfully maintained their first and second ranking in respect of consolidated net sales. But Cipla lost its third position and went down to fifth position after Sun Pharmaceutical Industries and Lupin during 2011-12. Similarly, Wockhardt moved to seventh position from eighth position in last year.
After the acquisition of Taro Pharmaceutical of Israel, Sun Pharma's consolidated net sales climbed to Rs.8,006 crore from Rs.5,723 crore in the previous year, a strong growth of 39.9 per cent, and grabbed third position from fourth place in 2010-11. Lupin, with net sales of Rs.6,960 crore in 2011-12, moved to fourth place from fifth position in previous year. Cipla lost its third ranking despite net sales growth of 11.1 per cent to Rs.6,808 crore in 2011-12 and moved down to fifth place.
Cadila Healthcare has maintained its sixth position with net sales of Rs.5,090 crore. However, Wockhardt, a debt ridden pharma major, climbed to seventh place displacing Aurobindo during 2011-12. Wockhardt's consolidated net sales increased by 23 per cent to Rs.4,614 crore from Rs.3,751 crore in the previous year and that of Aurobindo's net sales improved only by 5.1 per cent to Rs.4,551 crore. Jubilant Life Sciences and Glenmark Pharmaceutical with net sales of Rs.4,254 crore and Rs.4,021 crore respectively, maintained their positions at ninth and tenth place respectively.
The earnings before depreciation, interest, taxation and adjustments (EBDITA) of these 10 leading companies improved smartly by 25.3 per cent to Rs.15,926 crore from Rs.12,706 crore in the previous year. Though the EBDITA of Ranbaxy, and Aurobindo Pharma declined by 12 per cent 36 per cent during 2011-12, the EBDITA of DRL, Sun Pharma, Wockhardt and Jubilant Life Sciences improved by over 50 per cent. Sun Pharma's EBDITA remained highest at Rs.3,675 crore followed by DRL of Rs.2,451 crore and Cipla of Rs.1,730 crore. Lupin and Cipla posted EBDITA growth of 22 per cent 23 per cent respectively.
The net profit of these 10 companies declined by over 46 per cent during 2011-12 as Ranbaxy incurred a net loss of Rs.2,900 crore as against net profit of Rs.1,497 crore. The heavy loss of Ranabxy is mainly due to settlement provision of Rs.2,648 crore and forex loss of Rs.1,658 crore. Similarly, Aurobindo Pharma also incurred a net loss of Rs.124 crore as against net profit of Rs.563 crore due to forex loss of Rs.223 crore as compared to forex gain of Rs.48 crore. Wockhardt has recorded strong growth of 278 per cent in net profit to Rs.343 crore during 2011-12 as compared to Rs.91 crore in the previous year.
Except Ranbaxy and Wockhardt, all companies recommended handsome equity dividend to stake holders during 2011-12. DRL declared equity dividend of 275 per cent, Sun Pharma 425 per cent, Jubilant Life Sciences 300 per cent, Glenmark 200 per cent, Lupin 160 per cent and Cadila 150 per cent. The overall R&D expenditure also gone up and these companies received higher ANDAs approvals from US FDA and other regulatory bodies during 2011-12.
Highlights of Leading companies : 2011-12 & 2010-11 (Consolidated)