Ranbaxy posts Rs186.08 crore in Q2 profits

Ranbaxy Laboratories Ltd, the country's largest drugmaker by sales posted a profit for the second quarter mainly on account of reducing forex losses, sales in emerging markets and effective cost-control measures.

The company in which Japanese drug major Daiichi Sankyo owns a 64 per cent stake recorded a net profit of Rs186.08 crore during the quarter ended 30 September as against a net loss of Rs352.93 crore during the same quarter in the previous year. The company's total income rose 13.5 per cent from Rs1,202.21 crore in the third quarter of the previous financial year to Rs1,365.19 crore during the third quarter of the current financial year.

The improved performance was reflected in the company's shares which rose 2.59 per cent on the Bombay Stock Exchange at Rs382.

According to Ranbaxy CEO revenue growth in certain strategic markets coupled with a sharp focus on cost efficiency have underpinned the company's performance this quarter. He added tat with good achievement of the fronts the company was confident of being on the recovery path.

However, the setback due to the USFDA ban on products from two Indian facilities at Dews and Paonta Sahib had been instrumental in severely denting the company's performance which resulted in de-growth of 53 per cent in sales in US market, which stood at $44 million.

The adverse performance in the US market which is the largest pharma market for the company has in turn pulled down its performance in the developed countries, which overall recorded a de-growth of around 30 per cent sales at $109 million.