Ranbaxy Q1 net zooms four-fold at Rs 1,247 cr
New Delhi: Drug major Ranbaxy Laboratories on Wednesday posted a four-fold increase in its consolidated net profit at Rs 1,246.76 crore for the first quarter ended March 31, 2012, on account of robust sales in international and domestic markets.
The company's profit was also influenced by the launch of a generic version of Pfizer's Lipitor, a cholesterol lowering drug, in multiple markets including US, West Europe and Australia.
The company had posted a net profit of Rs 304.38 crore in the corresponding period of last year, Ranbaxy Laboratories said in a statement.
Commenting on results, Ranbaxy CEO and Managing Director Arun Sawhney said: "The focus on key products and markets, while maintaining emphasis on further strengthening quality and compliance standards, has had a positive impact on the performance of Ranbaxy during the quarter".
The company's net sales on consolidated basis rose to Rs 3,695.40 crore during the first quarter ending March, 2012, as against Rs 2,141.49 crore in the same period of last year.
The performance was also aided by the strengthening of Indian rupee against the US dollar during the quarter.
"The Indian rupee strengthened against the US dollar in the quarter. This led to reversal of USD 87 million (Rs 439.6 crore) of the marked to market losses on derivative options outstanding and foreign currency loans," the company said.
On a standalone basis, the company was back in the black with a net profit of Rs 827.23 crore for the first quarter.
The Gurgaon-headquartered firm had posted a net loss of Rs 52.9 crore in the corresponding period of last year.
During the quarter, the company's net sales on standalone basis rose to Rs 1,810.22 crore during the first quarter, as against Rs 1,054.92 crore in the same period of last year.
The drug major recorded growth in most major markets including North America, Western Europe, Asia Pacific besides its active pharmaceutical ingredients (API) business.
The company's India region sales growth grew over 10 percent in rupee terms during the first quarter of this year, the company said.
The company said its US base business continued to be strong during the quarter with robust sales of products under exclusivity like Atorvastatin and Amlodipine+Atorvastatin, Ranbaxy said.
"The company is working towards creating a sustainable, profitable, growing business in the long run with differentiated, branded generics business at its base," Sawhney added.
The company had announced court approval of the Consent Decree (CD) filed with the US Food and Drug Administration (FDA). This is expected to address legacy issues and bring greater predictability to the business in the US, Ranbaxy said.
"An important development has been the resumption of exports to the USA from our Indian facility," Sawhney said.
Shares of Ranbaxy Laboratories Wednesday closed at Rs 512.45 on BSE, up 3.80 percent from its previous close.