Continuing its initial rally, the share of drug major Ranbaxy Laboratories on Thursday surged nearly 29%, adding R3,279 crore to its market value, after the company reported a narrowed consolidated net loss of R524.24 crore for the second quarter ended June 30, 2013.
After surging 33.98% to R377.70 in intra-day trade, share of the drug firm settled 27.49% higher at R359.4 on the BSE. On the NSE, the stock gained 28.60% to close at R362.
Led by the rally in the stock, the market capitalisation of the company shot up by R3,279 crore to R15,206 crore.
“Results were better-than-expected that is why the stock bounced back,” said CNI Research CMD, Kishor Ostwal.
The stock had underperformed the market over the past one month, sliding 17.72% compared with the Sensex’s 3.41% fall.
Ranbaxy Laboratories on Wednesday reported a consolidated net loss of R524.24 crore for the second quarter, 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. Net sales of the company declined to R2,633.20 crore for the second quarter, as against R3,204.59 crore in the same period of previous year.
For the quarter ended June 30, 2013 sales in North American market were at R851.6 crore. In the USA, it was at R 770 crore, which is lower in comparison to the same quarter last fiscal.