Ranbaxy posts Rs 2,983 cr loss over US provisioning

Feb 24 2012, 01:08 IST
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SummaryRanbaxy Laboratories posted its largest net loss of Rs 2,983 crore during the fourth quarter ending December 31, 2011, on the back of a one-time settlement provision to resolve its dispute with US regulators

Ranbaxy Laboratories posted its largest net loss of Rs 2,983 crore during the fourth quarter ending December 31, 2011, on the back of a one-time settlement provision to resolve its dispute with US regulators.

The firm had posted Rs 97.5 crore loss during the same period last fiscal. Analysts said this was also the biggest loss posted by any Indian pharma firm. The loss amounted to around 80 per cent of sales made by the company during the quarter. Of the Rs 2,983 crore of net loss, Rs 2,648 crore is on account of the provisioning it has made to resolve its disputes with the US Department of Justice on compliance issues at four of its manufacturing facilities in India and the US. Ironically, during the quarter, Ranbaxy also earned the distinction of becoming the first pharma company of Indian origin to have clocked annual sales of over $2 billion.

For the fiscal year 2011, Ranbaxy posted Rs 2,899.7 crore net loss against a net profit of Rs 1,496.7 crore in 2010. The company said that it was confident of performing better in the current fiscal, during which it expects to cross sales of $2.2 billion. FE

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