Ranbaxy Laboratories: Q1FY15 Result Analysis

The consolidated net loss for Ranbaxy Laboratories stood at Rs 186.87 crore in June’14 quarter as against Rs 517.83 crore in June’13 quarter. This was mainly on the back of decrease in total expenses which were down 8.56 % (YoY). The reduction in expenses can be attributed to decrease in cost of raw material consumed and other expenses which were down by 18% and 13% respectively.

The loss per share also reduced considerably to Rs 4.39 per share in June’14 quarter from Rs 12.40 per share in June’13 quarter. The financing cost of the company was also reduced by 10.55% to Rs 142.35 crore in June’14 quarter from Rs 159.14 crore in June’13 quarter (YoY). 

The gain on foreign currency stood at Rs 31.74 crore in June’14 quarter as compared to a loss on foreign currency of Rs 367 crore in June’13 quarter (YoY).

Geographically, the company’s sales for the quarter were as follows; the Indian market grew at 12% as compared to growth of total Indian pharmaceutical market at 10%, Western Europe grew10% while East Europe recorded sales of Rs 340 crore, Africa and Middle East recorded a sale of Rs 200 crore, Asia pacific Rs 120 crore and Latin America (LATAM) Rs 40 crore. The North American market recorded the highest sales of Rs 760 crore. 

The company has received an approval from USFDA to manufacture and market Valsartan tablets, to cure high blood pressure and heart failure, on an exclusive basis. 

A joint inspection was carried on by European agencies including UK, Ireland, Germany and Australia at Tonsa API facility and found no issues with respect to product quality or patient issues. These authorities have reinstated the European Union Good Manufacturing Practice (EU GMP) certificate for the Tonsa facility. 

Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) have conveyed “No Objection” with regards to the scheme of Ranbaxy’s merger with Sun Pharmaceuticals.  

Arun Sawhney, CEO& MD, said “We continue to work towards our base business with focus on emerging markets while at the same time, restoring the business on growth trajectory in our traditional markets such as USA and Europe”