Ranbaxy Q3 net falls to Rs 205 cr

Consolidated net up 7% on better US, Europe sales

Ranbaxy Laboratories, aided by a strong growth in the US and Europe, recorded a global third-quarter (Q3) profit after tax of $43.5 million (Rs 200.1 crore) for 2003-04, up 7 per cent from $40.5 (Rs 186.3 crore) during the year-ago period. Third quarter sales rose 19 per cent to $292 million (Rs 1,343.9 crore) from $245 million (Rs 1,127 crore) in 2003.

On a standalone basis, Ranbaxy Laboratories today announced that its third-quarter profit after tax (PAT) fell by 31 per cent from Rs 205.1 crore in 2002-03 to Rs 141.3 crore in 2003-04. Its total income (net of excise) fell 8.4 per cent from Rs 979.15 crore to Rs 896.57 crore.

The company's share price fell 0.95 per cent on the Bombay Stock Exchange to end the day at Rs 1073.45.

After seeing a dip in the first six months of the year, Ranbaxy sales in the US, its largest market, registered an increase of 13 per cent to reach $102 million during the quarter ending September 30.

Last year, Ranbaxy had registered very high sales of cefuroxime axetil as it had exclusive marketing rights for the generic drug for six months. These rights expired in July-August last year. If cefuroxime axetil is taken out of last year's sales, Ranbaxy's turnover in the US has grown by 35 per cent, the company said in a release.

"Cefuroxime axetil is behind us. We have seen growth across various product categories in the last quarter.

Out of the 36 drugs we track, 14 have shown a strengthening in the prescription base, while 14 have remained the same," Ranbaxy president & CEO Brian Tempest said.

Ranbaxy clocked sales of $46 million in Europe during the quarter, a growth of 91 per cent over the same quarter of the previous financial year. Germany, the UK and France registered sales of $8 million (up 148 per cent), $15 million (up nine per cent) and $17 million respectively.

In spite of the high growth in Germany, Ranbaxy is looking to buyout another generics company in the country, Tempest added. It had earlier bought Basics, a generic company owned by Bayer. The company's sales in Europe have also gained from its acquisition of RPG in France, a generics company, from Aventis.

Talking about the company's prospects in the fourth quarter of the year (October-December 2004), Tempest said that he expects the company's turnover to grow by 20 per cent. "The performance so far has been in line with our projections," he said.

The results were approved by the Ranbaxy board today. The directors have also recommended payment of interim dividend of Rs 5 per share for the year ended December 31, 2004.