Ranbaxy loss at R586 cr on higher forex losses

Written by fe Bureau | New Delhi | Updated: Aug 10 2012, 09:57am hrs
Ranbaxy Laboratories on Thursday posted a net loss of R586 crore in the quarter ended June against a profit of R243.2 crore during the same period last fiscal mainly due to higher forex losses. The company posted losses despite the fact that revenues in its key US market has more than doubled in the comparable period.

Consolidated net sales rose 54.5% to R3,174 crore in the second quarter of the 2013 fiscal from R2,053 crore in the comparable period in the previous fiscal, Ranbaxy said. Ranbaxy follows calender year for reporting its results.

Ranbaxy, controlled by Japans Daiichi Sankyo, recorded a loss of R599 crore on foreign currency derivatives in the second quarter ended June, compared with a gain of R112 crore a year earlier. Sales and profitability grew in the quarter with overall improvement across major regions, aided further by exclusivity sales in some of the key markets, Arun Sawhney, chief executive, said in a statement.

Sales in North America, Ranbaxys biggest market, grew 140% to R1,471 crore in April-June, primarily due to retention of a dominant market share of the generic version of Lipitor, Pfizers cholesterol-lowering blockbuster drug in US.

Ranbaxy settled a compliance-related dispute with the US drug regulator early this year by signing up a consent decree late last year.

This allows it to ship products from its Indian facilities to the worlds largest drug market. The consent decree is under progress and going on as per plan, Sawhney said.