Ranbaxy
Ranbaxy Labs posted a set of very disappointing numbers for Q3 ended 30th Sept 2013. The beleaguered company posted a net loss at Rs.454 crore for Q3 compared to the net profit of Rs.750 crore in previous Q3. This loss was despite a marginal 3% rise in net sales at Rs.2750 crore. The company was pushed into the loss due to two factors – firstly, an exceptional cost of Rs 69.5 crore on account of stock write-off at its Mohali facility, post the US FDA imposition of import alert on the factory in September, which since then has not been barred from supplying medicines to USA. Secondly, the company had a forex loss of Rs. 360 crore, of which Rs.302 crore has been added to the P&L account in Q3. These factors apart, the huge interest outgo of Rs.111 crore and impairment loss on vaccine plant in Bangalore, added to the loss.
All the three factories in India which manufacture drugs for the USA, accounting for 40% of the total sales, continue to remain barred from exporting to America. Till the company does not meet up to the US FDA requisitions, this bar is expected to continue. The company has changed its financial year from January-Dec to April-March and thus the current financial year will end on 31st March, meaning it will be a 15-month year. Till end of 9-month period 30th Sept’13, sales stood at Rs.7907 crore and over the next 8 months, by 31st March 2014, expects to clock a revenue of Rs.13,000 to 13,500 crore.