Ranbaxy posts Q3 loss at Rs 454 cr, margin falls 560 bps
It was a disappointing quarter for the company on every parameter. Revenues of the company increased 3.45 percent year-on-year to Rs 2,802 crore in the quarter gone by. According to a CNBC-TV18 poll, analysts on an average had expected it to report revenues of Rs 2,879 crore for the quarter.
October 30, 2013 / 09:30 IST
Moneycontrol Bureau
Pharmaceutical firm Ranbaxy Laboratories posted a net loss of Rs 454 crore in three-month period ended September 2013 as against profit of Rs 754 crore in a year ago period, dented largely by forex loss of Rs 302.2 crore.Profit was also impacted by Mohali stock write off and other charges of Rs 69.5 crore, finance cost of Rs 111 crore and impairment loss on vaccine plant in Bangalore due to prevalent market conditions.There was a forex loss of Rs 360 crore, but out of that the company added only Rs 302.2 crore to profit and loss account for the quarter.Overall it was a disappointing quarter for the company on every parameter. Revenues of the company increased 3.45 percent year-on-year to Rs 2,802 crore in the quarter gone by.According to a CNBC-TV18 poll, analysts on an average had expected it to report revenues of Rs 2,879 crore for the quarter."The company continues to grow in its focus branded markets in Asia, East Europe, CIS and Africa. In India, however, the announcement of pricing policy caused some uncertainty in the market, during which our sales in the home market faced some disruptions," Arun Sawhney, CEO and MD said.Ranbaxy, which announced results after market hours, has changed its financial year to April-March from January-December earlier; hence, the current financial year will be for a period of 15 months from January 2013 to March 2014.The company expects to achieve sales of Rs 13,000-13,500 crore for 15 months period ending March 2014. This does not consider any sales accruing from first-to-files which shall be accounted for as they materialise, the company said.Its sales for nine months ended September 2013 were Rs 7,907 crore. So to achieve the given guidance, Ranbaxy has to do sales of Rs 2,546 crore each at lower end of guidance and Rs 2,796 crore each at upper end of guidance for next two quarters.Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 42 percent year-on-year to Rs 199 crore during September quarter, impacted by higher operating expenses and employee cost. Operating profit margin dropped 560 basis points Y-o-Y to 7.1 percent during second quarter, which was far lower than analysts' expectations.Analysts had expected EBITDA at Rs 294 crore and margin at 10.2 percent.GeographiesUS sales stood at Rs 790 crore, which were lower due to lack of exclusivity while North America sales stood at Rs 880 crore. East Europe CIS sales grew 24 percent year-on-year to Rs 480 crore while West Europe fell 31 percent Y-o-Y to Rs 200 crore. Africa and Middle East sales rose 4 percent to Rs 250 crore and Asia Pacific & Latin America grew 14 percent on yearly basis to Rs 230 crore during second quarter.Ranbaxy Laboratories' stock closed at Rs 385.65, down 0.82 percent on the BSE. 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!
