Ranbaxy Laboratories Ltd has reported a net loss of Rs 454.2 crore for the third quarter ended September 30, compared with a net profit of Rs 754.2 crore in the corresponding period last year.
The drug-maker attributed this loss to foreign exchange charges and a one-time provision of Rs 70 crore made for its Mohali plant in Punjab, which came under fire from the US regulator, Food and Drug Administration earlier this year.
At present, it follows the January-December fiscal, which it wants to switch from the next fiscal to April-March. Ranbaxy expects sales to reach Rs 13,000-13,500 crore in the 15-month period ending March 31, 2014.
“The depreciation of the rupee against the dollar, though favourable to Ranbaxy’s export business, had an adverse impact on the company, mainly on account of application of the accounting standards that require marking to market the entire derivatives and foreign currency denominated loans outstanding,” the company said in a statement.
Mark-to-market refers to accounting the “fair value” of an asset or liability based on the current market price.
“There was a charge of Rs 360 crore during the third quarter 2013 (July-September) and Rs 760 crore during the year-till-date September 2013 on account of these forex items,” Ranbaxy said.
Arun Sawhney, MD and CEO, said the announcement of the pricing policy caused some uncertainty in the market and disrupted sales in the country.
Ranbaxy’s sales rose to Rs 2,750.2 crore (Rs 2,668.5 crore). Total income rose marginally to Rs 2,827.7 crore (Rs 2,774.2 crore). The company continued to see growth in its focus branded markets in Asia, East Europe, CIS and Africa.
aesha.datta@thehindu.co.in