Ranbaxy Q2 net soars at Rs 693 cr

An impressive forex gain of over Rs 800 crore pushed the first quarter consolidated net profit of drug major Ranbaxy up by 30-fold to Rs 693.1 crore to put behind the losses in the previous three straight quarters.

The total income of the company, which was acquired Japanese Daiichi Sankyo last year, however, declined by 1.87 per cent to Rs 1,795.3 crore in the first quarter this fiscal compared to Rs 1,829.6 crore in the year-ago period.

It had posted a consolidated profit after tax of Rs 22.9 crore for the second quarter in 2008.

The company reported a forex gain of Rs 806 crore in the quarter under review. It incurred a forex loss of Rs 918 crore in January-March 2009, Ranbaxy Managing Director and CEO Atul Sobti told reporters here.

"Challenges have continued this quarter for the global economy and the pharmaceutical industry, affecting liquidity and demand across geographies. Our balanced market mix with a clear focus on emerging markets has helped us mitigate these pressures," Sobti said.

During the quarter, the emerging markets contributed 57 per cent of the company's global sales. It stood at $368 million (about Rs 1,795 crore), a decline of 7 per cent over the same period last year.