The net profit of Ranbaxy Laboratories, a subsidiary of Daiichi Sankyo
of Japan, before foreign exchange gains and other adjustments, declined
by 28.8 per cent during the third quarter ended September 2010 to Rs.77.33 crore from Rs.108.63
crore in the corresponding period of last year. Its EBDITA improved
only by 0.1 per cent to Rs.232 crore from Rs.230 crore. Profit before taxation and forex
adjustments also declined by 19.7 per cent to Rs.122
crore from Rs.152 crore. The total
foreign exchange gains amounted to Rs.260.52
crore as against Rs.7.97 crore in the
similar period of last year. Thus the forex gains inflated its bottom
line significantly.

The company, after adjustments, has shown
consolidated net profit of Rs.307.93 crore
as against Rs.114.53 crore in the
corresponding period of last year. With significant growth in profits,
its earnings per share went up to Rs.7.32
from Rs.2.72 in the last period. However,
the Ranbaxy scrip drifted southward after the announcement of financial
performance and was moving around Rs.587
as against its previous day close of Rs.604.05. The scrip touched to 52-weeks new high of Rs.624.90
today.

Its
R&D expenditure declined to Rs.144.65
crore from Rs.156.88 crore Ranbaxy filled
37 products and received 47 approvals for dosage forms during the
quarter under review.

The company's net sales increased by 9.8
per cent to Rs.1,884 crore from Rs.1,716 crore. Its other income, including
interest income moved down by 22.4 per cent to Rs.144
crore from Rs.186 crore. Its sales in
North America region increased by 70 per cent to Rs.491
crore on account of Valacyclovir which continued to enjoy a health
market share of 36 per cent, even after loss of exclusivity and better
performance by most business segment. However, its sales in Europe
declined by 5 per cent to Rs.277 crore. In
Romania, the growth momentum continue and the company posted a strong
growth of 20 per cent in revenues. Its sales in emerging market improved
by 5 per cent and contributed 59 per cent of its global sales.

Ranbaxy's
sales in India improved by 18 per cent to Rs.493
crore and the CIS region managed to push sales by 11 per cent to Rs.121
crore. However, sales in Africa declined by 6 per cent to Rs.164 crore. Similarly its sales in Rest of the
World declined by 12 per cent to Rs.108
crore. Its API business declined by 12 per cent to Rs.108 crore.

Arun Sawhney, managing
director, said, “Our key markets continued to perform well attributable
in large measure to balanced sales across geographics. This has also
been aided by the favorable forex movement. As we move forward, our
focus will be on bettering operational performance, maximizing synergies
with Daiichi Sankyo and on seeking a speedy resolution to the
challenges in the USA.”

For the first nine months ended September
2010, Ranabxy's net sales increased by 27.8 per cent to Rs.6,469 crore from Rs.5,063
crore in the similar period of last year. Its other income, including
interest income, went up by 54 per cent to Rs.585
crore from Rs.281 crore. The company's
R&D expenditure moved up Rs.437 crore
from Rs.382 crore. Its net profit went up
to Rs.1,594 crore from Rs.40.80 crore as the company shown forex gain
of Rs.428 crore as against loss of Rs.4.95 crore in the corresponding period of
last year.