RANBAXY LABORATORIES PROFIT
Ranbaxy beats forecasts, records
118% rise in net profit
22 July, 2007:
Ranbaxy Laboratories, the largest
pharmaceutical company in India, has
reported a 118% leap in its
consolidated net profit for the second
quarter ended June 30, 2007.
Ranbaxy Laboratories, India’s top drug
maker by sales, follows the calendar
year as its fiscal year. Ranbaxy
accomplished this feat, beating
forecasts, aided by a rapid growth in
Europe and the rising rupee.
The drug firm, predicted to earn $5
billion in annual sales by 2012,
posted a net profit of Rs 2.63 billion
($65 million) for the April-June 2007
quarter, as opposed to Rs 1.22 billion
a year ago.
Ranbaxy reported a standalone profit
of Rs 2.9 billion. Excluding foreign
exchange gains/losses, Ranbaxy's
consolidated net profit amounted to Rs
Malvinder Singh, chief executive of
Ranbaxy, said the company’s focus on
branded generics and the strength of
its business in key markets
contributed to its strong performance
in the second quarter.
Ranbaxy, based in New Delhi, is aiming
to become one of the world’s top five
generic drug firms.
According to analysts, Ranbaxy
Laboratories gained from the nearly 7%
appreciation of the rupee during the
second quarter of 2007 as it lowered
its foreign debt in rupee terms.
Rupee rose by about 7% against the
dollar in the last quarter, affecting
margins of most dollar-denominated
Before the results were released,
Merrill Lynch had estimated Ranbaxy’s
currency gain from foreign convertible
bonds and overseas loans at Rs 1
billion rupees ($24.8 million).
An official of Ranbaxy said the
company’s consolidated sales grew by
12% to Rs 16.2 billion.
The firm’s revenue was boosted by
eight companies it bought in 2006,
particularly Romanian pharmaceutical
firm Terapia, which it acquired for
Towards the end of the second quarter,
the company also received 180-day
exclusivity to market 80-mg
Pravastatin, which is used to prevent
Ranbaxy’s sales in Europe grew by 55%
to $86 million, while sales in North
America increased by 7% to $102