Ranbaxy Laboratories on Tuesday missed analyst expectations, reporting a quarterly loss of R186 crore, as a provision of R237.8 crore towards settlement of an ongoing case with the US government ate into its bottomline.
“We are not disclosing details as of now... It is a provision and, as soon as the settlement is done, we will be in a position to disclose more,” Arun Sawhney, managing director & chief executive of Ranbaxy, told analysts in a conference call. Ranbaxy chief financial officer Indrajit Banerjee said the case has no connection with the US Food and Drug Administration.
The company reported a net loss of R186 crore on sales of R2,372 crore for the quarter ended June 30. Analysts polled by Bloomberg expected a net profit of R41.1 crore on sales of R2,570 crore. Net sales fell 8% from the corresponding period in FY14. Ebitda margins for the quarter were 10% of sales. Branded and over-the-counter drugs, which contributed to 58% of total sales in the quarter, brought in R1,370 crore.
“Sales during the quarter were impacted by the voluntary suspension of active pharmaceutical ingredient (API) shipments from the company’s Dewas and Toansa facilities. This voluntary decision was taken as a precautionary measure and out of abundant caution. Since then, Ranbaxy has selectively refused supplies from Toansa and Dewas to some of the markets,” said Sawhney.
He added that relatively weaker business in the US, Latin America, Africa and West Asian markets adversely impacted sales. Sales in India and CIS regions were stronger.
North American sales were R760 crore for the quarter ended June 30, a decline of 11% y-o-y. The US contributed R700 crore for the quarter.
Domestic sales grew 12% y-o-y to R610 crore. “We continue to work towards growing our base with focus on emerging markets, while at the same time, restoring the business on growth trajectory in our traditional markets such as the US and Europe,” Sawhney said in a statement.