Ranbaxy CY07 margins seen at 16%

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Ranbaxy Laboratories has announced its first quarter results. The company's net profit was up at Rs 128 crore (Rs 1.28 billion) versus Rs 71.4 crore (Rs 714 million), YoY.

Ranbaxy Q1 net sales stood at Rs 1,564.4 crore (Rs 15.64 billion) versus Rs 1,263.1 crore (Rs 12.63 billion).

Forex gain for first quarter was at Rs 55.9 crore (Rs 559 million) as against Rs 5.9 crore (Rs 59 million).

Here are the key takeaways of the concall...

-Guidance 20% sales growth for CY07-20% growth guidance does not include the exclusivity wins CY07 Margins Seen At 16%

-88 Products Pending for US FDA Approval with market size of $56bn

-20 First-to-file ANDAs, With Market Size Of $26 Bn

-To Launch 1 product with 180-day exclusivity every year

-Have launched 4-5 new products in Q1 in US

-Strengthening Biz in SAfrica to become 5th Largest Generic co through Be-tabs acquisition which will close in May this year

-Acquisition focus mainly in emerging markets in Branded Generics space

Ranbaxy sees growth in all the key geographies. Singh adds that their Europe business grew 78%; their UK business grew at 77% while they had an 11% growth in Germany.

Their emerging market business grew by 50%. They have 88 products pending US FDA approval.They will focus on JVs with several niche companies in India.

Earnings per share on a fully diluted basis were Rs. 2.61 (2006: Rs. 1.91).

Emerging Market geographies were at USD 192 Mn, constituting 54% to global sales and recording a robust growth of 53%.

Sales in North America were at USD 91 Mn, recording an increase of 3%. For the quarter, USA recorded sales of USD 86 Mn, at similar levels to the corresponding previous quarter.

In Q1 2007, Europe (including Romania) registered sales of USD 93 million, 78% higher than the corresponding previous period. The improved performance was a result of robust sales growth in most key EU countries.

Romania recorded sales of USD 37 Mn for the quarter, registering a growth of 50%. 

The Company's operations in the Western Europe countries of UK, Germany and France, recorded a combined turnover of USD 34 Mn for the quarter, registering  a growth of 7%.

Sales in UK were at USD 12 Mn, an increase of 77% over previous year.

German business recorded sales of USD 10 million, an increase of 11% over the corresponding previous period.

Sales in Rest of Europe were at USD 22 million, a growth of 46% over the corresponding previous period.

The Asia Pacific & CIS region recorded combined sales of USD 115 Mn for the quarter, 32% better than the previous year.

The sales for the quarter were at USD 65 Mn, 26% better than the corresponding previous period. In rupee terms, the India region sales grew by 24%.

CIS: Russia & Ukraine recorded sales of USD 18 Mn (+61%) for the quarter. Russia & the Ukraine belt recorded sales of USD 9 Mn each with a growth of 71% and 51% respectively.

Asia Pacific (excluding India) registered sales of USD 24 mn, an increase of 33% over the previous period. 

Africa recorded sales of USD 24 Mn, a growth of 28%.

Brazil registered sales of USD 6 Mn for the quarter, recording a growth of 14% over the corresponding previous period.

Maintained its Rank 6 in the generic market in Brazil.

During the Quarter, Ranbaxy filed 3 ANDAs with the US FDA and received approval for 4 taking the cumulative filings to date to 199 with 111 approvals. In the European Union (EU), the Company made 10 National filings in 9 Reference Member States (RMS) and received 9 approvals in 4 RMS.