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Ranbaxy Laboratories' second quarter profits have dipped 25 per cent to Rs 243 crore compared with Rs 325 crore in the corresponding quarter last year. The decline in profits is primarily due to decrease in international sales and rising costs.
The company's international revenues declined by 6.5 per cent to Rs 1,558 crore from Rs 1,665 crore. Overall revenues slipped 1.8 per cent to Rs 2,059 crore (Rs 2,095 crore).
Commenting on the quarter's results, Mr Arun Sawhney, Managing Director, Ranbaxy, said, “We have consciously worked towards strengthening our base business on the one hand and successfully delivering on multiple first-to-file opportunities on the other.”
Ranbaxy's shares were down 2.5 per cent on the Bombay Stock Exchange to close at Rs 520 on Friday.
On USFDA ban
The pharma major, which is fighting a ban imposed by the US Food and Drug Administration on 30 drugs manufactured at its Paonta Sahib plant, said that negotiations were progressing well. The company said 10 regulatory agencies from across the globe including the USFDA, th eWorld Health Organisation and the European Union, inspected Ranbaxy's API and dosage form facilities, in multiple locations across the world, including India.
“Ranbaxy continued to co-operate with the USFDA and the Department of Justice for a comprehensive solution to its regulatory issues. Negotiations with the regulators are progressing well,” the company said in a statement.
Sales in north America
Sales in the North American region were $112 million aided by First-To-File sales. The company said its US recorded total sales of $95 million in the quarter without giving the year-earlier figures.
Ranbaxy's hedged positions on foreign currency billings helped it record an exceptional gain of Rs 112 crore versus a year-earlier loss of Rs 234 crore as the Indian rupee rose against the US dollar in the past quarter.
Project Viraat, Ranbaxy's initiative for the India market has gained ground with a growth rate of 18 per cent. Market share of the company in India also improved to 4.79 per cent (IMS SSA Audit YTD June 2011) from 4.63 per cent (IMS SSA Audit YTD June 2010).
Emerging markets contributed 57 per cent of total sales. Developed markets contributed 34 per cent to total sales for the company. API and others accounted for the rest of the revenue for the quarter.
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