Tuesday, May 15, 2012

Ranbaxy Q1 net jumps 310% YoY on robust sales, forex gains


Pharma major Ranbaxy Wednesday reported a significantly better-than-expected four-fold year-on-year increase in consolidated net profit at Rs 1,247 crore, helped by strong sales growth, higher other income and forex gains.

Its net sales in Jan-March quarter surged 73% to Rs 3,695.4 crore.

The company had launched cholesterol lowering drug Atorvastatin, a copy of blockbuster drug Lipitor, in Dec, and further launched the drug in Australia and some European markets in the last quarter, which has boosted sales.

Analysts on average were expecting Ranbaxy to report a net profit of Rs 408 crore on revenue of Rs 3720 crore.

During the quarter, Ranbaxy, owned by Japan's Daiichi Sankyo, had other income of Rs 136.6 crore, nearly double than a year ago. It also had foreign exchange gain of Rs 344.7 crore in Jan-March.

The company's EBITDA (earnings before interest, taxes, depreciation and amortization) was up 138% to Rs 1,015.2 crore.

"The focus on key products and markets, while maintaining emphasis on further strengthening quality and compliance standards has had a positive impact on the performance of Ranbaxy during the quarter. The company is working towards creating a sustainable, profitable, growing business in the long-run with differentiated, branded generics business at its base," Arun Sawhney, CEO and MD said.

Helped by the Atorvastatin launch and strong base business, Ranbaxy's North America sales more than doubled to Rs 2,093.4 crore in the first quarter.

Its sales in India including consumer healthcare and Sri Lanka rose 13% year-on-year to Rs 500.2 crore in the quarter.

Ranbaxy's Europe sales rose 11.5%, while sales in Asia Pacific, Latin America, Africa and Middle East were up 25%.

Ranbaxy shares were up 2.6% at Rs 505.15 on NSE in afternoon trade.

Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd 

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