Ranbaxy net flat at Rs 71.4 cr

BS 200 SCORECARD

Pharmaceutical major Ranbaxy Laboratories announced 0.8 per cent increase in profit after tax to Rs 71.4 crore for the quarter ended March 2006, from Rs 70.8 crore in the same quarter last year.

The company's global consolidated sales grew 12.03 per cent quarter-on-quarter to Rs 1,275.3 crore from Rs 1,138.3 crore. It has reduced its research & development spend by 1 per cent to Rs 73 crore this quarter.

Malvinder M Singh, managing director & chief executive officer, said, "The figures are as per our expectations. Our top line has risen by 12 per cent and we have seen growth from each of the key markets and geographies."

Talking about the company's inorganic growth plans, Singh commented that Germany was a weak link in the company's global network but he was looking at targets all over in US, Europe and BRIC countries.

"As for the entities already acquired, RPG Aventis in France would breakeven on EBITDA and Terapia is EPS accretive already. So we would see the returns from these acquisitions pouring in this year itself."

The US market has recovered with sales at $88 million, registering a q-o-q increase of 10 per cent. The Indian market too has seen strong growth with sales at $ 58 million, up 49 per cent.

"In US, we have worked at increasing the market penetration that has brought about an increase in volumes. We expect growth to continue as more products are introduced based upon our filings", said Singh.

Ranbaxy has cumulative filings of 170 abbreviated new drug applications (ANDAs) in the US with 59 pending approvals whose value is estimated to be $ 42 billion at innovator prices.

The growth in India came partly from regularisation of stocking by chemists in the post VAT regime and partly from new product launches, added Singh.