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Ranbaxy Group Q1 Indian GAAP Profit Rises Over Four-Fold

5/9/2012 6:45 AM ET

Pharmaceutical big-league name Ranbaxy Laboratories Ltd. reported more than four-fold increase in its consolidated net profit for the first-quarter, on Indian GAAP basis, aided by robust sales from all its verticals and strong sales contribution from exclusivities.

On a stand-alone basis, the company swung to profit for the quarter under review.

Consolidated Results

The Punjab-based company's first-quarter consolidated net profit rose more than four-fold to Rs.1,246.76 crore or Rs.29.51 per share from the Rs.304.39 crore or Rs.7.23 per share in the corresponding quarter last year.

The company said the Indian rupee strengthened against the dollar in the quarter. This led to reversal of $87 million or around Rs.439.60 crore of the marked to market losses on derivative options outstanding and foreign currency loans. The impact has been accounted for below the EBITDA line.

Its quarterly net sales stood at Rs.3,695.40 crore, surged by 73 percent from the Rs.2,141.50 crore in the year-ago quarter, while other operating income was Rs.91.44 crore, compared with Rs.72.67 crore in Q1FY11.

Stand-alone Results

Ranbaxy posted a first-quarter net profit of Rs.827.23 crore or Rs.19.58 per share, compared with a net loss of Rs.52.91 crore or Re.1.26 per share in the first-quarter of last year.

Quarterly net sales was Rs.1,810.23 crore, compared with Rs.1,054.92 crore in the first quarter of 2011, an increase of 72 percent, while other operating income amounted to Rs.110.29 crore, compared with Rs.71.80 crore in the year-ago quarter.

Research and development (R&D) expenses for the quarter totaled Rs.101.71 crore, flat from last year's Rs.102.95 crore.

During the quarter, the company also resumed exports to the U.S. from its Indian facility.

In November, the company had launched Atorvastatin, the generic version of the world's best selling drug Lipitor with a six month marketing exclusivity.

The company's Board approved the appointment of Kazunori Hirokawa as an Additional Director. Hirokawa is a member of the Board and Senior Executive Officer and Head of Corporate Strategy Division of Daiichi Sankyo Co. Ltd, Japan.

Managing Director & CEO Arun Sawhney said: "The focus on key products and markets, while maintaining emphasis on further strengthening quality and compliance standards has had a positive impact on the performance of Ranbaxy during the quarter. The company is working towards creating a sustainable, profitable, growing business in the long run with differentiated, branded generics business at its base. An important development has been the resumption of exports to the U.S. from our Indian facility. Efforts to improve the effectiveness and efficiency of resource deployment continues, which is expected to result in further improving our base business in the coming quarters."

At the BSE, Ranbaxy closed Wednesday's trading at Rs.512.45, up by Rs.18.75 or 3.80 percent on a volume of 747,000 shares.

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by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

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