Increased revenues from Ranbaxy Laboratories has helped Japanese drug major Daiichi Sankyo, the majority stake holder, register a 34 per cent increase in its net profit for the December quarter.
The company registered a net profit of 27.5 billion yen (Rs 1,541 crore) for the quarter ended December 31, compared to 20.6 billion yen (Rs 1,155 crore) during the corresponding quarter last year.
Net profit for the nine-month period (ended December 31) was 79.7 billion yen (Rs 4,453 crore), 103 per cent higher than the 39.3 billion yen (Rs 2,200 crore) in the year-ago period.
The interest cost of Ranbaxy’s acquisition and revaluation of its assets will however result in a fourth quarter loss for Daiichi, a company executive told news agencies in Tokyo today. According to the revised forecast, Daiichi’s net profit for the whole year (ending March 2011) will be 70 billion yen (Rs 3,919 crore).
The company, which owns 63 per cent stake in Ranbaxy, did not provide additional details about the interest expenses and asset revaluation.
Net sales of Ranbaxy Group, which rose 31.1 per cent year-on-year to 134 billion yen (Rs 7,503 crore), was driven by revenues from its anti-viral drug, valacyclovir, in the US, the company said.
“Operating income (of Daiichi) increased 33.9 per cent to 120.6 billion yen (Rs 6,753 crore) thanks to the contribution of Ranbaxy, and ordinary income (of Daiichi) rose 44.1 percent to 130.6 billion yen (Rs 7,314 crore) mainly on the back of a decrease in foreign exchange losses and the occurrence at Ranbaxy of gain on valuation of derivatives”, Daiichi said in a statement.