Ranbaxy profit triples to Rs 312 crore

NEW DELHI: India’s largest drugmaker by sales, Ranbaxy Laboratories, saw quarterly net profit almost triple but uncertainty over its problems with the US drug regulator and high contribution of foreign exchange gains in its third-quarter earning, unnerved investors; triggering a 3% decline in its shares after an initial spurt.

The Gurgaon-based company, 64% owned by Japan’s Daiichi Sankyo, had earlier said it had made “substantial progress” in resolving its issues with regulatory authorities in the United States, its biggest market, prompting many to believe that the outlook was rosy. But MD Arun Sawhney on Thursday said it was not clear how long it would take for US authorities to lift the ban on products from two of its Indian plants.

Ranbaxy’s share price closed at Rs584.85, down 3.18% on Thursday largely on lack of clarity in solving the regulatory issue that could potentially prevent it from its blockbuster drug launch opportunities. The drugmaker’s profit for the quarter stood at Rs312 crore for the quarter ended September 30, up from Rs116 crore last year on sales of Rs1,887 crore which rose 13%.

Profit was also bolstered by a $33 million gain from foreign exchange, or about half the net profit. During the quarter, emerging markets recorded sales of $238 million, contributing 59% of its global sales. North America, dominated by US sale recorded sales of $105 million (Rs491 crore) up over 70%. Sales in Europe fell 5% to $60 million (Rs277 crore). In India, sales grew 18% to Rs 4,930 million ($106 million), a growth of 18% over the corresponding quarter last fiscal.