The Hindu Business Line : Ranbaxy first quarter net rises 7.2% at Rs 153 cr

Mr Malvinder Mohan Singh, CEO & Managing Director, Ranbaxy Laboratories Ltd, and Mr Omesh Sethi, Vice-President & Finance Head, at a press conference in the Capital on Tuesday. —

Our Bureau

New Delhi, April 22 India’s largest pharmaceutical company Ranbaxy Laboratories Ltd has reported a 7.2 per cent increase in net profit to Rs 153 crore during the first quarter of 2008 compared to Rs 142.7 crore in the corresponding quarter in the previous year. Revenues for the quarter increased 4 per cent to Rs 1,623 crore during the quarter ended March 31, 2008 compared to Rs 1,564 crore in the first quarter of 2007.

“Traditionally, the first quarter is always the weakest in terms of revenue. Revenue will only grow in the following quarters,” Ranbaxy’s Chief Executive Officer, Mr Malvinder Singh said. Ranbaxy shares closed down 2.4 per cent at Rs 487.15 on the Bombay Stock Exchange.

Mr Singh said there was no change in the company’s outlook of about 20 per cent to 25 per cent net profit growth and 18 per cent to 20 per cent of revenue growth for the financial year ending Dec. 31, 2008. He also said the company was close to concluding a strategic alliance in the area of drug discovery in May. He did not elaborate on the alliance, but indicated that the tie-up will be on the lines of the one it has with GlaxoSmithKline (GSK) for developing a drug for asthma.

“Following a good start to the year, we expect business to ramp up even further as we move through the successive quarters. In this regard, our market and product balancing strategy will play to our advantage. Separately, the enhanced visibility of earnings from our FTF (first to file) pipeline and a highly progressive alliance and collaboration strategy will contribute to the definitive build up in earnings and profitability over the many coming years,” Mr Singh said.

Developed markets led by North America, record 17 per cent growth in sales, contribute 40 per cent to global sales. Emerging Markets comprise 53 per cent to global sales and grew 12 per cent. North America was the key contributor to developed markets whereas growth in the emerging markets was led by India, CIS & other countries in the Asia Pacific region. The API business recorded 27 per cent increase in sales of $30 million.

Mr Singh said that the company has faced a loss of Rs 73 crore due to fluctuations in the rupee to dollar conversion rates during the quarter but this was offset by income from a one time land sale. On the impact of fluctuating exchange rate on the company’s revenues in the future Mr Singh said that enough measures have been taken to hedge such possibilities.

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