Ranbaxy reports flat net growth in Q1

Ranbaxy Laboratories, the country's largest drug maker by .sales, posted a net profit of Rs 153 crore for the first quarter ended March 31, 2008, up 7 per cent as compared to Rs 142.7 crore for the corresponding quarter last year.

The consolidated sales for the period under review stood at Rs 1,623.1 crore, a rise of 4 per cent over the corresponding quarter last year.

Ranbaxy follows the January-December accounting year. Earnings per share on a fully-diluted basis were Rs 3.66 for the quarter, 38 per cent higher as compared to an EPS of Rs 2.64 in 2007.

Robust growth in key markets of North America and Asia Pacific and CIS contributed to the growth, Malvinder Mohan Singh, CEO and managing director, said on Tuesday.

In the first quarter under review, Ranbaxy's market mix remained steady with the emerging markets contributing 53 per cent to global sales and growing at 12 per cent.

The developed markets contributed 40 per cent, growing at 17 per cent. Medicine raw material (API) sales also grew by 27 per cent on a quarter-to-quarter basis, Singh said.

However, Ranbaxy's sales in Europe slipped 11 per cent at $83 million (Rs 312 crore) than the corresponding quarter last year.

Singh attributed this to lower sales in Romania, which recorded a 29 per cent decline on a quarter-to-quarter basis.

"Sales were impacted as a result of the uncertainty in the market place owing to the proposed healthcare reforms and the re-introduction of branded prescribing, which has been introduced from April 1, 2008," Singh said.

Singh added that Ranbaxy's new drug research entity will be listed on the stock exchanges this year. He also hinted at a research alliance with a major multinational firm, similar to the existing milestone and royalty-based drug research pact with GlaxoSmithKline, is expected to be inked within four weeks.

Shares of Ranbaxy's fell down 2.36 per cent (Rs 11.8) to Rs 487.15 on the BSE on Tuesday.