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Ranbaxy Laboratories posted a better performance in its third quarter, reporting a net profit of Rs 754.2 crore, over a loss of Rs 4,64.6 crore in the corresponding quarter last year.
According to the pharma major, the improved results were largely due to mark-to-market gains on long-dated derivative contracts and foreign currency loans.
Volatile environment
The Indian pharma major, controlled by Japan’s Daiichi Sankyo Co., is vulnerable to currency volatility because of its high level of hedged positions on foreign currency billings and the large size of its overseas loans. A weak local currency had pushed Ranbaxy into the red in the year-ago quarter.
The company said in a release that consolidated sales were Rs 2651.4 crore, up about 31 per cent compared with last year’s results in the same quarter.
The EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) was 16 per cent of sales, at Rs 417.9 crore, the statement added. In 2011, the amount was Rs 132.4 crore.
Commenting on the quarter results, the CEO and Managing Director, Arun Sawhney, said Ranbaxy’s business performance continued to strengthen as planned “even in a volatile regulatory and business environment.”
He said the company’s focus on key markets, improvement in manufacturing, R&D productivity and heightened level of cost consciousness helped in the strong performance.
“We are confident that these measures will help further strengthen our base business,” he added.
The company claimed it has maintained leadership in the sale of cholesterol lowering drug Atorvastatin.
“Sales in India grew faster than the growth in the Indian Pharmaceuticals Market, during the quarter,” the statement said.
US SALES
The sales in North America saw a growth of over 60 per cent on constant foreign exchange over last year’s corresponding quarter, the company said. “US recorded total sales of Rs 840.3 crore in the quarter,” the statement added.
jigeesh.am@thehindu.co.in
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