The Hindu Business Line : VAT uncertainty, US ruling drive down Ranbaxy's Q1 net by 63%

UNCERTAINTY over the implementation of value-added tax (VAT), the withdrawal of Quinapril (for blood pressure) due to a US District Court ruling and pricing pressure in the US market have taken a toll on Ranbaxy Laboratories Ltd.

For the first quarter (Q1) ended March 31, 2005, the net profit was down 62.85 per cent at Rs 70.8 crore (from Rs 190.6 crore recorded during the same period last year). The consolidated sales of the company stood at Rs 1,138.3 crore, which is 12.96 per cent lower than last year's Rs 1,307.9 crore.

According to Dr Brian W. Tempest, CEO and Managing Director, Ranbaxy Laboratories Ltd, "This was an unusual quarter for a variety of reasons, but Ranbaxy's strong pipeline of products, which has now almost reached 100 product approvals in the US, will take us through to a stronger performance in the second half of 2005."

Stock spilt

The board of directors has approved a stock split of the existing equity shares of the face value of Rs 10 each into shares with the face value of Rs 5 each. It has also recommended a final dividend of Rs 12 per share. Earlier in 2004, an interim dividend of Rs 5 per share was paid, bringing the total dividend per share to Rs 17. The total dividend amount (including dividend tax) for the year 2004 was Rs 360.3 crore.

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