Ranbaxy Laboratories has reported heavy consolidated net loss of Rs.1,030 crore during the third quarter ended December 2014 due to higher provision for taxation, lower sales and forex loss as against Rs.159 crore in the similar period of last year. The company provided Rs.888.19 crore for taxation as compared to Rs.98.14 crore in the same quarter of last year. Further, it incurred a forex loss of Rs.15.28 crore as against forex gain of Rs.103.57 crore. EPS worked out to negative Rs.24.26 as compared to negative Rs.3.76 in the last period.
With poor performance, Ranbaxy scrip declined sharply to 702.40 in the afternoon session on BSE. The scrip touched to its yearly highest level at Rs 724.95 in the morning session today.
Its consolidated net sales declined by 9.5 per cent to Rs.2,588 crore from Rs.2,859 crore. Its US sale touched to Rs.896 crore and that in West Europe reached at Rs.208 crore. Its sales in India increased by 2 per cent to Rs.591 crore. Its sales in East Europe and CIS amounted to Rs 373 crore due to currency depreciation in Russia and Ukraine. Its sales in Africa and Middle East reached at Rs.224 crore. Sales in Asia Pacific and LATAM (including Sri Lanka improved sharply by 46 per cent to Rs.218 crore. Its API sales declined to Rs.71 crore primarily impacted by supply issues at Toansa and Dewas.
Ranbaxy's domestic business improved by 12 per cent. It launched India's first biosimilar of infliximab, Infimab through a licensing partnership with EPIRUS Biopharmaceuticals, Inc. It is indicated for the treatment of inflammatory diseases including rheumatoid arthritis, Crohn's Disease, ankylosing spondylitis, ulcerative colitis, psoriatic arthritis and psoriasis.
The company received the regulatory approval to launch India's first NCE Synriam in seven African countries viz., Nigeria, Uganda, Senegal, Cameroon, Guinea, Kenya and Ivory Coast. The product has since been launched in Uganda and will be made available in other countries towards end of January 2015.
Arun Sawhney, chief executive officer, and managing director, says, “Ranbaxy recorded good growth in India, Russia, APAC and LATAM during the quarter. However, overall sales were impacted by global currency depreciation in some markets. During the quarter, we introduced India's First New Chemical Entity (NCE), Synriam in Africa which is a new and convenient therapy option for patients suffering from malaria.”
For the first nine months ended December 2014, Ranabxy's consolidated net sales remained almost stagnant at Rs.8,178 crore as against Rs.8,193 crore in the corresponding period of last year. It has reduced its net loss at Rs.738 crore from Rs.1,137 crore despite higher interest and tax provision. Its tax provision increased to Rs.968 crore from Rs.186 crore and interest burden burden increased to Rs.427 crore from Rs.391 crore. Its exceptional items in respect of settlement provision, inventory write off, impairment of goodwill and forex loss amounted to Rs.243 crore as against Rs.1,012 crore in the similar nine months of last year.
Commenting on the merger with Sun Pharma, Sawhney says, “The merger process is progressing well and we are working towards the completion of the pre-requisites.”