Ranbaxy Laboratories has suffered heavy setback during the quarter ended March 2014 on account of flat sales growth, lower other income, significant higher interest and tax provisions. Its consolidated net sales improved marginally by one per cent to Rs. 2,436 crore from Rs. 2,411 crore in the corresponding period of last year. The consolidated net loss amounted to Rs. 73.65 crore as against a net profit of Rs. 125.76 crore in the similar period of last year. Its EBDITA declined by 31 per cent to Rs. 174.45 crore from Rs. 252.99 crore.

Branded and OTC category contributed Rs. 13.2 billion accounting for 54 per cent of total sales during the quarter and generics including API category recorded Rs. 11.2 billion of sales.

Its other operating income as well as other income declined by 55.8 per cent to Rs. 54.39 crore from Rs. 123.15 crore. Its tax expenditure increased sharply to Rs. 109.86 crore from Rs. 35.34 crore. Further, its total exceptional income worked out to Rs. 66.68 crore as against Rs. 81.84 crore in the corresponding period of last year. Foreign exchange loss amounted to Rs. 1.61 crore as compared to Rs. 35.67 crore and minority interest and share in loss of associates reached at Rs. 6.56 crore as against Rs. 5.89 crore in the corresponding quarter of last year.

Ranbaxy has changed its accounting year for 15 months period from December 2012 to March 2014.  Its consolidated net sales for the 15 months period amounted to Rs. 13,040 crore as against Rs. 12,253 crore in the previous year of 12 months period. On an annualised basis its net sales declined by 14.9 per cent to Rs. 10,432 crore as its international sales declined sharply. The domestic sales improved by 4 per cent on annualised basis to Rs. 2,290 crore from Rs. 2,201 crore. However, its international sales on an annualised basis declined sharply by 19 per cent to Rs. 8,142 crore from Rs. 10,052 crore in the previous year.

The sales of branded and OTC category contributed Rs. 64 billion while generics including API category recorded Rs. 66.4 billion during 15 months ended March 2014. Its sales in North America reached at Rs. 42 billion, reflecting a strong base business growth over the corresponding period. The company maintained its strong market share in Absorica, isotreatenoin NDA in the USA. Its domestic sales worked out to Rs. 28 billion, of which consumer healthcare sales contribution was Rs. 5.1 billion. Its sales in East Europe and CIS reached at Rs. 20 billion and that in West Europe reached at Rs. 10.8 billion. The sales in Asia Pacific and LATAM reached at Rs. 9.2 billion. The total API sales amounted to Rs. 7.5 billion.

The consolidated net loss for the 15 months period ended March 2014 amounted to Rs. 1,085 crore as against a net profit of Rs. 923 crore in the previous year of 12 months period. Its EBDITA, on an annualised basis declined sharply by 55.1 per cent to Rs. 992 crore from Rs. 2,211 crore in the previous year. Its foreign exchange loss declined for the 15 months to Rs. 84.60 crore from Rs. 115.17 crore. However, its interest burden increased sharply to Rs. 557 crore from Rs. 304 crore.

Arun Sawhney, CEO and managing director, said, “Despite multiple challenges, Ranbaxy met its sales guidance and continued to build on its strengths. At the same time we continue to work closely with the regulatory agencies to address their concerns.”