Ranbaxy reports Rs2,983 crore Q4 loss on US probe provisioning

Ranbaxy Laboratories Ltd, the country's top drugmaker by sales, has reported a net loss of Rs2,982.8 crore ($586 million) for the quarter ended 31 December 2011, mainly on provisioning related to a probe by the US justice department.

Ranbaxy, majority owned by Japan's Daiichi Sankyo Co, said its consolidated sales rose over 79 per cent to Rs3,743.3 crore ($736 million) during the quarter against net sales of Rs2,090.7 crore ($468 million) in the year-ago quarter.

Earnings before interest, tax, depreciation and amortisation (EBITDA) was 25 per cent of sales at Rs954.8 crore ($188 million) during the quarter against Rs230.2 crore ($53 million) in the year-ago quarter.

Ranbaxy said the consolidated financial results took account of significant exceptional charges on account of a $500 million provisioning in connection with the investigation by the US department of justice, and long-term outstanding forex call options sold by the company in earlier years and foreign currency loans marked to market as a matter of prudent accounting.

Ranbaxy said it signed a consent decree agreement with the US FDA, which was approved by the district court of Maryland on 26 January 2012.

Consequently, there was a net loss, after tax and minority interest, of Rs2,982.8 crore ($586 million) for the quarter.

During the quarter, the company took an exceptional impact of Rs135.7 crore towards impairment and inventory provisions.