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Financial Performance Corporate Results - Pharmaceuticals
Making a point: Mr Malvinder Mohan Singh, CEO and Managing Director, Ranbaxy Laboratories Ltd, with Mr Atul Sobti, Chief Operating Officer, at a press conference in the Capital on Thursday.
Our Bureau
New Delhi, July 19 Ranbaxy Laboratories Ltd on Thursday reported a growth of about 118 per cent in consolidated net profits at Rs 266 crore for the second quarter, 40 per cent of which was due to a translation gains from forex. “If you remove the forex impact, this amounts to net profit of Rs 160 crore, which is 53 per cent higher from the preceding quarter (January-March). We have kept our payables and liabilities open and also hedged and covered ourselves well,” said Mr Malvinder Mohan Singh, Chief Executive Officer. The company has gained from a strong rupee, which reduces the cost of servicing foreign borrowing of over $500 million. A significant part of this is in the form of Foreign Currency Convertible Bonds of $440 million, convertible in equity in 2011. Net Sales for the quarter ended June 30, were up over 12 per cent at Rs 1,611 crore, as against about Rs 1,434 crore reported the corresponding quarter the previous year. Excluding foreign exchange impact, EBIDTA margins were at 16.4 per cent to sales, said the Gurgaon-based company. Operating margins for the corresponding quarter the previous year were at 17 per cent, however, Ranbaxy points out that was inclusive of the $30-million business it did from Simvastatin. Meeting targets
The company has maintained its guidance of 20 per cent in sales and 16 per cent in EBIDTA for the year, although it has bettered its targets in the first two quarters and expects even stronger results for the coming two quarters. “We expect Romania, Malaysia and the new Be Tabs (the company Ranbaxy acquired in South Africa) to generate even stronger figures,” said Mr Atul Sobti, Executive Director and COO, Ranbaxy. The company expects significant gains from at least one successful first to file application each year. It is optimistic of an approval in 2008 and then for another “big product” in 2009, said Mr Singh, adding that Ranbaxy was also looking to increase its therapeutic basket by increasing focus on oncology, biosimilars and peptides. The company hopes to have launched about 100 products during this year across geographies. Global sales during the quarter registered an increase of 25 per cent to $395 million, with emerging markets (India, Russia, Ukraine, Romania and South Africa being key drivers) contributing more than half of total sales. Across the globe
Sales in the US were at $95 million, higher by 7 per cent from the corresponding quarter in 2006. The base business, excluding sales of first to file products grew 37 per cent said the company. In June, the company launched Pravastatin 80 mg with a 180 day market exclusivity and claims it has garnered 50 per cent share of the $209 million market for the molecule. During the quarter it also acquired Bristol Myers Squibb’s dermatology segment. Europe saw a growth of 55 per cent with sales at $86 million during the quarter, with Romania accounting for $29 million. Domestic business grew 19 per cent with sales of $79 million reported during the quarter, led by chronic (30 per cent) and acute (16 per cent) therapeutic areas. South Africa, where the company completed acquisition of Be-Tabs saw a growth of 82 per cent with sales of $13 million reported during the quarter. In Latin America, Ranbaxy registered a growth of 71 per cent with sales of $18 million. On a standalone basis the company reported a growth of 191 per cent in net profits at above Rs 291crore for the quarter ended June 30, 2007, as against about Rs 100 crore reported in the corresponding quarter the previous year. Net sales dropped marginally at Rs 1,014.6 as against Rs 1,043.7 crore reported in the corresponding quarter the previous year.
Related Stories: More Stories on : Financial Performance | Pharmaceuticals | Ranbaxy Laboratories Ltd
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