The Hindu Business Line : Ranbaxy Q3 net up 7 pc; to pay Rs 5 interim

AFTER being hit by the decline in sales of cefuroxime axetil (Ceftin) in the US market due to increased competition, Ranbaxy Laboratories Ltd is back in business.

The consolidated sales of the pharma company and its subsidiaries during the third quarter ended September 30, 2004 were Rs 1,343.9 crore compared to Rs 1,127 crore achieved the previous year, registering a growth of 19.2 per cent. Profit after tax grew by seven per cent to touch Rs 200.1 crore from Rs 187.1 crore.

For the nine months ended September 30, 2004, the company recorded consolidated sales of Rs 3,909.8 crore, up from last year's Rs 3372.1 crore, a growth of 15.9 per cent. Net profit stood at Rs 587.4 crore, up 3.6 per cent. The board of directors also approved payment of interim dividend of Rs 5 per share.

However, net sales of the Indian company fell by 3.2 per cent during the third quarter to touch Rs 862.9 crore, while the profit after tax declined by 31.1 per cent to Rs 141.3 crore. For the nine-month period, sales fell by 5.2 per cent to Rs 2600.3 crore while net profit dipped by 30.3 per cent to touch Rs 474.8 crore. Speaking to Business Line, Dr Brian Tempest, Managing Director and CEO, said, "We have seen a recovery in the US market and have put behind the cefuroxime axetil impact. We are starting to see the underlying growth of 30 per cent in the market." The growth has come from the branded initiative of the company that presently comprises a basket of six products covering the therapeutic areas of dermatology, diabetes and anti-infectives.

Dr Tempest said that besides US, Europe and the BRIC (Brazil, Russia, India and China) countries also hold good potential. "In addition, our acquisitions in France, Germany and Spain also performed very well," he added.

On the domestic front, Dr Tempest reiterated that the aim is to become the No 1 in the country.

The gap between the company and Cipla needs to be reduced, he said. The company recorded a net sales growth of 5.5 per cent.

The prescriptions, chronic segments, and the consumer healthcare segment showed healthy growth. However, there would be some impact due to the withdrawal of its version of rofecoxib. The anti-arthritis drug had domestic sales of Rs 15 crore.