Ranbaxy Laboratories on Wednesday reported a narrowed consolidated net loss of R524.24 crore for the second quarter ended June, mainly due to the impact of rupee depreciation on foreign currency loans and goodwill impairment in its operations in France. The company had posted a net loss of R585.72 crore for the corresponding period previous fiscal, Ranbaxy said in a statement.
“The depreciation of the rupee against the dollar, though favourable to Ranbaxy’s export business, had an adverse impact on the current quarter profitability. This was mainly on account of application of the accounting standards that require marking to market the entire derivatives and foreign currency denominated loans outstanding,” Ranbaxy said. There was a net charge of R540.3 crore during Q2 of FY13 and R495.4 crore during H1 of FY13 on the P&L on account of the forex items, it added.
The macroeconomic environment continued to be challenging in certain countries in Western Europe. Specifically in France, the generic pharma industry has been impacted by continuing pricing and trade challenges, Ranbaxy said.
“The company has accordingly taken an impairment of goodwill of R119.2 crore in France in line with the accounting standards,” it added.
Net sales of the company declined to R2,633.20 crore for the second quarter, against R3,204.59 crore in the same period of previous year.
Ranbaxy CEO & MD Arun Sawhney said that absolute sales were lower during Q2 of this fiscal compared with the corresponding period sales of Q2 FY12 as these included contribution from exclusivities, mainly in the US.