Ranbaxy Laboratories has reduced consolidated net loss to Rs.158.94 crore during the fourth quarter ended December 2013 as against Rs.492.45 crore in the corresponding period of last year. The company provided Rs.257.43 crore on account of US FDA ban on product from its Toansa unit subsequent to the imposition of the Consent Decree. Its EBDITA, however, moved up strongly by 87.4 per cent to Rs.295.46 crore from Rs.157.63 crore. After the announcement of working results, Ranabxy scrip moved up by over 6 per cent to Rs.344 on BSE.
Its consolidated net sales improved by 7 per cent to Rs.2,859 crore during the quarter under review from Rs.2,671 crore in the corresponding period of last year as its sales in major markets like USA, India and East Europe registered higher sales. Branded and OTC category contributed Rs.14.8 billion accounting 52 per cent of total sales during the quarter. Generics including API category recorded Rs.13.8 billion of sales. It maintained strong market share in absorica, isotretenoin NDA in the USA with market share of 17.2 per cent. It had earlier received a Paragraph IV Certification notice of filing from Watson Laboratories of an ANDA to the US FDA for a generic version of absorica.
Its sales in North America stood at Rs.10.2 billion and that in domestic market reached at Rs.5.8 billion. Its sales in East Europe & CIS registered at Rs.4.6 billion whereas its sales in West Europe amounted to Rs.2.3 billion. Its sales in Africa and Middle East amounted to Rs.2.6 billion. The sales of API and other stood at Rs.1.4 billion and its sales in Asia Pacific and LATAM were Rs.1.7 billion.
Arun Sawhney, CEO & managing director, said, “ Ranbaxy has been strengthening its base business in key markets including India, Eastern Europe & CIS and the USA which has helped us recover our margins. We are facing some major regulatory challenges and are disappointed with the developments. I would like to assure all our stakeholders that we will do whatever is necessary to address all concerns of the US FDA and are committed to resolve them as early as possible.”
For the 12 months ended December 2013, Ranabxy's consolidated net sales declined by 12.7 per cent to Rs.10,604 crore from Rs.12,253 crore in the previous year. It incurred a net loss of Rs.1,012 crore as against a net profit of Rs.923 crore mainly due to the provision of Rs.326.94 crore for inventory write off, Rs.119.17 crore for impairment of goodwill and Rs.483.91 crore for loss on foreign currency option derivatives. Further, forex loss amounted to Rs.82.99 crore as compared to Rs.115.17 crore in the previous year. Its EBDITA declined by 52 per cent to Rs.1,066 crore from Rs.2,211 crore. The employees cost increased by 8 per cent to Rs.2,080 crore from Rs.1,928 crore and its interest cost went up sharply by 46.1 per cent to Rs.443.69 crore from Rs.303.60 crore. The company extended its financial year by three months to March 2014.