Ranbaxy

A good growth in topline and lower costs helped Ranbaxy improve its operational efficiencies and it ended the quarter with a consolidated net profit at Rs.478 crore v/s loss of Rs.454 crore in Q1Fy14. This rise in profit was despite a 23% jump in interest outgo and a steep 49% increase in tax outgo. There was also a forex loss of Rs.22 crore. 

Net revenue rose 16% (YoY) at Rs.3260 crore of which exports saw a rise of 17% while domestic business rose 15%. This jump in topline was mainly due to the exclusive launch of generic version of Novartis’ hypertension drug brand Diovan in the US. And getting the first mover advantage, Ranbaxy will be the only generic player for a period of 160 days.

On the other hand, operating costs reduced 7%. This coupled with the higher topline helped the company post an almost 4 times jump in operating profit at Rs.807 crore. Especially enthusing was the whopping 1770 bps jump in margins to 24.8% on a sequential basis.  Ranbaxy will be merged into Sun Pharma by the end of this year.