- 'Buy' Ranbaxy Laboratories shares, target price Rs 520, says Citi FinanceMarket Eye Week Ahead: BSE Sensex, NSE Nifty seen volatile ahead of RBI, FedIndian shares to watch: Maruti Suzuki India, RIL, Tata Steel, Apollo HospitalsRanbaxy Laboratories posts Rs 454-cr loss in Q3 on Mohali plant forex woes
Pharmaceutical company Ranbaxy Laboratories on Tuesday posted a third-quarter loss of Rs 454 crore, compared with a profit of R754.17 crore in the same period last year, as R302.21-crore in one-time forex loss ate into its profit.
The company said that the board decided to change its financial year to “April-March” from the currently observed financial year of “January-December.” In view of this, the current fiscal will be for a period of 15 months, that is January 2013 to March 2014, Ranbaxy said.
The Gurgaon-based company, which is 64% owned by Japan’s Daiichi Sankyo, posted consolidated sales of R2,750.17 crore, up 3% from the 2012 quarter. It said the new pricing policy and trade concerns in India and the absence of any post exclusivity sales during the quarter impacted its topline.
“In India, the announcement of the pricing policy caused some uncertainty in the market, during which our sales in the home market faced some disruptions,” Ranbaxy chief executive officer Arun Sawhney said, adding that the company will satisfactorily address the increasing standards of quality and manufacturing processes.
Sales in the domestic market at R570 crore was in-line with the corresponding quarter last year. The over-the-counter or consumer healthcare business posted revenue of R110 crore, a growth of 7% over the same period last year.
In the global scenario, branded and over-the-counter medicines category contributed R1,470 crore, which lended to 53% of total sales during the quarter. Generics including active pharmaceutical ingredient category brought in R1,280 crore. Ranbaxy said it filed three abbreviated new drug applications with the USFDA in the quarter.
The company provided a sales outlook of R13,000 crore to R13,500 crore for 15 months period ending March 2014. The estimates does not take into account sales, which may accrue from exclusivity sales from first-to-file generic drug applications.
“The depreciation of the INR against the $, though favourable to Ranbaxy’s export business had an adverse impact on the company mainly on account of application of the accounting standards that require marking to market the entire derivatives and foreign currency denominated loans outstanding,” the Daiichi Sankyo Group company said, about the one-time forex charge.
In mid-September, Ranbaxy’s Mohali facility was placed under an “import alert” by the USFDA, prohibiting the import of any drugs manufactured at the site into the US. The company made a provision for Mohali stock write-off and other costs amounting to R70 crore.