Ranbaxy Laboratories' sales growth and high profit margins were helped mainly by sales of Lipitor and Caduet on an exclusive basis in the US.
Ranbaxy's US sales stood at $416 million vis-à-vis $170 million last year. It was the key driver behind the quarter's 75 per cent sales growth. India grew 13 per cent during the quarter in rupee terms. The over-the-counter business within India grew at a healthy 20 per cent plus, while the branded business grew at a sedate 11 per cent.
The latter was a tad slower than the market. Europe and CIS reported flat sales in dollar terms and Asia-Pacific posted 12 per cent growth in dollar terms.
Operating profit margins improved to 27 per cent during the quarter against 19 per cent last year driven by Lipitor exclusive sales. If Lipitor sales were excluded, the base business margins may have been in the higher single digit levels for the quarter, given the tepid business mix.
Reported net profit exceeded expectations mainly on the back of a whopping 97 per cent increase in ‘other income' (possibly from cash surpluses) and lower tax rate (10 per cent).
During the quarter, Ranbaxy shifted Lipitor manufacturing from US to Indian facility at Mohali, Punjab. This will help Ranbaxy remain competitive in the market post expiry of the exclusivity. With the Lipitor exclusivity lasting up to this month end, the company's performance until the end of the current quarter will continue to be driven by Lipitor.
Nalinakanthi.
venkataraman@
thehindu.co.in