Emerging marts spur Ranbaxy Q3 net by 65%

Effective foreign currency management and increasing sales from emerging markets helped leading drug maker Ranbaxy Laboratories record a net profit of Rs 207.4 crore during the September 2007 quarter, up 48 per cent compared with Rs 140.4 crore in the year-ago period.

Excluding foreign currency gains, the profit was Rs 161.9 crore, higher by 13 per cent over the figure in the previous quarter. The company's consolidated revenues grew by 15 per cent to Rs 1,652 crore from Rs 1,640 during the period under review.

Earnings per share (EPS) on a fully diluted basis were Rs 4.35 as against Rs 3.37 in 2006.

Commenting on the results, Ranbaxy CEO and MD Malvinder Mohan Singh said: "Our business performance is in line with the growth guidance we have given. We expect the trend to continue, with our revenues from the biosimilar segment emerging as a major growth driver."

The company, which had acquired a controlling stake in biotech firm Zenotech, is set to launch its key oncology bio-pharmaceuticals GCSF, GM-CSF and Interleukin-2 through Ranbaxy's marketing network.

During the period under review, emerging markets accounted for 54 per cent of sales and delivered higher sales growth in comparison to the growth in developed markets.

India, the Ukraine belt, South Africa and Brazil were the primary drivers in emerging markets, while Europe and the USA added to the growth in developed markets.