Ranbaxy

As against a consolidated net loss of Rs.464 crore in third quarter ended 30th Sept 2011 and net loss of Rs.586 crore in Q2CY12, this current Q3, the company has seemingly ‘turned around’ with a net profit at Rs.754 crore. This is only thanks to the forex gain of Rs.393 crore. Barring this, the company would have posted a measly net profit at Rs.2 crore. Net sales was at Rs.2651 crore, sequentially down 14%. Sales within India rose 5% while exports fell 35%. It has substantially reduced its operating expenses, eating away 89% of the net sales compared to 95% (QoQ) and 101% (YoY). Interest cost is actually a gain of Rs.55 crore, which is on forex borrowings.

Thus the market was not enthused with the numbers as they seemed more of a turnaround on account of accounting adjustments rather than on operational efficiencies.  During this Q3, the company made 31 dosage form filings and received 43 approvals. For active pharma ingredients (API), it made 12 drug master file (DMF) submissions. It has also received approval to set up a greenfield manufacturing facility in Malaysia. On completion, this facility will triple the existing manufacturing capacity in the focus market for Ranbaxy. Its copy-cat version of Lipitor, for which it had exclusive marketing rights with Watson Pharma ended in May 2012 and has managed to survive post that. In August, it launched generic Actos, a diabetes drug by Takeda and shares marketing exclusivity with Mylan Inc in USA.