Ranbaxy misses estimates; Q1 net sinks 90%
Ranbaxy's first quarter consolidated net profit plunged 90 percent to Rs 126 crore, while net sales fell 34 percent to Rs 2,439.8 crore in Jan-March. The company's earnings in the year ago quarter were boosted by launch of generic version of cholesterol lowering drug Lipitor.
Moneycontrol Bureau
Pharma major Ranbaxy on Wednesday reported lower-than-expected Rs 126 crore consolidated net profit for the first quarter, down 90 percent year-on-year. It must be noted that the company's earnings in the year-ago quarter were boosted by the launch of its generic version of cholesterol lowering drug Lipitor.Net sales of the company, which is owned by Japan's Daiichi Sankyo, also missed street expectations. They were down 34 percent in Jan-March to Rs 2,439.8 crore. Ranbaxy said on a like-to-like basis sales grew in double digits.Analysts on average had expected Ranbaxy to report a net profit of Rs 173 crore, on revenue of Rs 2,630 crore.Ranbaxy's sales in the Indian market gained 11 percent to Rs 543 crore. However, North America sales plunged to Rs 689. Last year, the company had launched its generic version of Pfizer's blockbuster cholesterol lowering drug Lipitor in the US market, which had driven sales.In Jan-March, the company filed 3 ANDAs (abbreviated new drug applications) with the US Food and Drugs Administration, which include two potential first-to-file (exclusive launch) products. Among other regions, West Europe sales were also down 18 percent to Rs 202 crore. Africa and Middle East sales, meanwhile gained 23 percent to Rs 298 crore and East Europe & CIS sales were up 15 percent to Rs 360 crore.Ranbaxy's sales in Asia Pacific and Latin America were at Rs 166 crore.Its operating profit margin in the quarter was at 6.6 percent, compared with 26.8 percent in the year ago quarter. Ranbaxy had foreign exchange loss of Rs 36 crore in the first quarter. On the other hand, it gained Rs 82 crore on foreign currency option derivatives. Thus it had net forex inflow of Rs 46 crore, last quarter.The street slammed Ranbaxy's lower-than-expected results. The stock was down 3 percent at Rs 443.40 on NSE in late afternoon trade.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
