Ranbaxy Laboratories, a Rs. 12,250 crore leading multinational company, has suffered heavy setback during the second quarter ended June 2013 and its consolidated net sales declined sharply by 17.9 per cent to Rs. 2,633 crore from Rs. 3,205 crore in the similar period of last year. Its sales in India declined to Rs. 556 crore from Rs. 561 crore and that in international market declined to R 2,077 crore from Rs. 2,643 crore. The sales in international market declined during the quarter which include sales relating to First-to-File products in the US.
Though it has reduced its net loss by 10.5 per cent to Rs. 524 crore from Rs. 586 crore, its earnings before interest, depreciation, taxation and adjustments declined sharply by 48.8 per cent to Rs. 297.81 crore from Rs. 581.05 crore in the same quarter of last year. EPS worked out to negative Rs. 12.40 as compared to negative Rs. 13.89 for the last period.
The company incurred forex loss of Rs. 429.91 crore during the quarter under review as against Rs. 849.74 crore. Further, it provided Rs. 119.17 crore towards impairment of good will as compared to nil in the last period. The company has settled civil and criminal allegations on May 13, 2013 as per the decree of the court of Maryland. It had provided a Rs. 2,648 crore in the year ended 2011. Accounting adjustments arising from apportionment of the total accompanying amount between the company and its US subsidiaries, including the impact of apportionment on provision for taxation, have been caried out in the financial results for quarter as well as half year.
For the first half ended June 2013, Ranbaxy's consolidated net sales 26.6 per cent to Rs. 5,073 crore from Rs. 6,914 crore in the corresponding period of last year. It registered a net loss of Rs. 398.49 crore as compared to net profit of Rs. 661.04 crore mainly due to provision of Rs. 383.74 crore for forex loss as compared to Rs. 410.06 crore in the last period. Further, it provided an impairment of goodwill in its subsidiaries of Rs. 119.17 crore.