The Hindu Business Line : Ranbaxy consolidated Q2 profit flat at Rs 160 cr

Ranbaxy Laboratories on Tuesday reported consolidated profit of Rs 160.8 crore for its second quarter ended June 30 compared with Rs 160.4 crore for the corresponding quarter last year.

This, however, does not include the losses due to fluctuations in the foreign exchange rates. A weak rupee resulted in Ranbaxy’s foreign exchange losses swelling to Rs 193 crore against a gain of Rs 201 crore in the same period a year ago. If the foreign exchange losses are included then Ranbaxy’s consolidated net profit plunges to Rs 22.9 crore in the second quarter from Rs 264 crore a year ago.

The consolidated total sales of Rs 1,829.6 crore represented an increase of 12.67 per cent over the corresponding quarter last year.

Mr Malvinder Mohan Singh, CEO and Managing Director, expected Ranbaxy’s operating performance to be stronger in the second half of the year and forecast EBITDA growth of around 17 per cent in the second half .

Ranbaxy’s shares closed 3.8 per cent lower at Rs 474.80 on the Bombay Stock Exchange.

Developed markets accounted for 40 per cent of global sales and recorded a growth of 12 per cent. The US, Canada and France were the primary contributors to growth. Emerging markets contributed 53 per cent of global sales and grew 9 per cent. North America sales were at $120 million, an 18 per cent growth from last year.

In Q2 2008, Europe (including Romania) recorded sales of $89 million, 4 per cent higher than the corresponding previous period.

US motion

On the motion moved by the US Department of Justice against the company, Mr Singh said, “We have a communication with the US regulator and based on that we are confident of the motion being withdrawn. We will be furnishing all the information sought by the US authorities by August 3.”