Ranbaxy's net profit rises 7% to Rs 153cr

Ranbaxy Laboratories, the country's largest drug maker by sales posted a net profit of Rs 153 crore for the first quarter ended March 31, 2008, up by 7 per cent as compared to Rs 142.7 crore for the corresponding uarter in 2007. The consolidated sales for the same period were Rs 1,623.1 crore and Rs 1,564.4 crore respectively, an increase of 4 per cent.

Earnings per share on a fully diluted basis were Rs 3.66 for the quarter, 38 per cent higher as compared to an EPS of Rs 2.64 in 2007.

Robust growth in key markets of North America and Asia Pacific and CIS contributed to the growth, Malvinder Mohan Singh, CEO and managing director, Ranbaxy said.

For Q1, Ranbaxy's market mix remained steady with the emerging markets contributing 53 per cent to global sales and recording a growth of 12 per cent. The developed markets contributed 40 per cent to global sales and recorded a growth of 17 per cent. The medicine raw material (API) sales also grew by 27 per cent on a quarter-to-quarter basis, Singh said.

However, Ranbaxy's sales in Europe registered sales of $ 83 million (Rs 312 crore), 11 per cent lower than the corresponding previous period. Singh said that the downslide was on account of the lower sales in Romania, which recorded a 29 per cent decline on a quarter-to-quarter basis.

"Sales were impacted as a result of the uncertainty in the market place due to the proposed healthcare reforms and the re-introduction of branded prescribing, which has been introduced from April 1, 2008. The company's existing brand recognition and brand building capabilities will augur well as a result of the re-introduction of branded prescribing in the market. Ranbaxy will do well in Romania in the coming months," Singh said.

He also informed that the new research entity of Ranbaxy will be listed in the stock exchanges during the current year. Singh hinted that a research alliance with a major multinational firm is expected to be inked within four weeks.