Ranbaxy net loss at Rs 73.6 crore in Jan-Mar quarter

Drug maker Ranbaxy Laboratories Limited did not fail to disappoint investors in its quarter to March results. Flat growth in revenue and a net loss of Rs 73.6 crore led to adismal show in the quarter. The company had reported a profit of Rs 125.7 crore in the year-ago quarter.

Rupee appreciation during the quarter did result in foreign exchange gains of Rs 155.9 crore on the company’s foreign currency derivatives. But provisions towards inventory write off, impairment of goodwill and investment in an associate, all amounting to Rs 90 crore, pushed its bottomline in the red.

A 19% growth in revenue from the US generic business, aided by sales from generic Absorica, and maintenance of the operating margin at 6% were the only major positives. Except the US, the company underperformed in all other segments.

Revenues from the India business remained flat. Sales from Asia Pacific and Latin America as well as Middle East & Africa regions declined marginally and those from the active ingredients business fell over 60%. The US business revenues de-grew sequentially as fallout of a manufacturing ban imposed by the US Food and Drug Administration on the company’s Toansa plant in Punjab.