The Hindu Business Line : Ranbaxy reports net loss of Rs 806 cr

New Delhi, Jan. 22 Ranbaxy Laboratories Ltd on Thursday reported a net loss of Rs 806.54 crore (on a standalone basis) for the quarter ended December 31, 2008 compared to net profit of Rs 48.4 crore in the corresponding quarter last year.

The financial performance for the quarter under review was significantly impacted by the company’s decision on early adoption of an ICAI accounting standard related to valuation of foreign currency options, foreign exchange loss on existing borrowings besides operational loss due to a difficult business environment. While the losses on fair value of derivatives stood at Rs 784.3 crore, the company also took a hit of Rs 171.5 crore, being the foreign exchange loss on loans. With the company deciding to adopt Financial Standard 30 from October 1, 2008 itself, it has also adjusted Rs 1,178.8 crore (net of tax) against the opening balance of revenue reserves as on January 2008. This represents the transitional loss on fair valuation on foreign currency options as on October 1, 2008.

For the quarter under review, the company has taken a credit of Rs 435.96 crore under the income tax head on account of deferred tax write back. In the same quarter last year, the company had provided Rs 81.11 crore towards tax payment.

Total income has increased from Rs 1,038.1 crore for the quarter ended December 31, 2007 to Rs 1,074.5 crore for the quarter ended December 31, 2008. On a consolidated basis, Ranbaxy has reported a net loss of Rs 679.8 crore for the quarter under review compared with a profit of Rs 187 crore in the same period last year.

Speaking on the occasion, Mr Malvinder Mohan Singh, Chairman, CEO and Managing Director, Ranbaxy Laboratories Ltd, said, “The past year has been a significant one. We saw ourselves, redefining paradigms in the pharmaceutical space through the alliance we reached with Daiichi Sankyo which will strengthen both companies and unleash tremendous growth opportunities for them. However, we also faced hurdles like the USFDA Import Alert and unprecedented forex volatility following an unforeseen global financial crisis.”