Ranbaxy posts Rs 2,983cr loss in Q4 on settlement provision
Pharma major Ranbaxy Laboratories reported a consolidated net loss of Rs 2,983 crore in the fourth quarter, compared with Rs 97.5 crore loss a year ago as it made provisions for settling a probe by the US Justice Department and also incurred foreign exchange losses due to the rupee depreciation.
February 23, 2012 / 22:47 IST
Moneycontrol Bureau
Pharma major Ranbaxy Laboratories reported a consolidated net loss of Rs 2,983 crore in the fourth quarter, compared with Rs 97.5 crore loss a year ago, as it made provisions for settling a probe by the US Justice Department and also incurred foreign exchange losses due to the rupee depreciation.The company's net sales, meanwhile, surged 79% year-on-year in October December to Rs 3,738 crore, helped by the launch of generic versions of cholesterol lowering drug Lipitor and Caduet, which is also used for treating high blood pressure.Analysts on average were expecting Ranbaxy to report a profit of Rs 575 crore on revenue of Rs 3,156 crore in the fourth quarter, according to a CNBC-TV18 poll.In the fourth quarter, the company made settlement provision of Rs 2,648 crore in connection with the investigation by US Justice Department on compliance issues at some of Ranbaxy's manufacturing plants. It was also hit by a forex loss of Rs 838 crore in Oct-Dec, compared with a gain of Rs 132.6 crore in the year ago quarter."I am satisfied with the progress we are making in resolving the long standing issues with US regulators. The settlement with the US FDA and provision for eventual penalties that the DOJ may levy, brings greater predictability to our business in the US, one of our largest markets," Ranbaxy's CEO and MD Arun Sawhney said.Ranbaxy's sales in North America more than trebled in the fourth quarter to Rs 1,966.6 crore. It had sales of Rs 481.8 crore in India and Rs 380.7 crore in Europe in the fourth quarter. Ranbaxy's sales in Africa were up 18% from a year ago to Rs 247.7 crore. However, its sales de-grew in Asia Pacific, Latin America and the CIS countries.The company said sales in India were impacted due to slowdown in the market, especially in acute therapies, including anti-infectives in the second half of 2011.Ranbaxy said it is the first company of Indian origin to see sales surpass of over USD 2 billion last year and it is now expecting sales of at least USD 2.2 billion in 2012, not taking into account upside from any first-to-file exclusive generic drug launches.Ranbaxy shares closed up 0.4% at Rs 440.30 on NSE on Thursday. 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!
