Ranbaxy Lab extends intraday gains as net loss narrows in Q4

Ranbaxy Laboratories rose 4.94% to Rs 337.65 at 12:38 IST on BSE after the company reported a consolidated net loss of Rs 158.94 crore in Q4 December 2013, lower than net loss of Rs 492.44 crore in Q4 December 2012.

The Q4 result was announced during trading hours today, 5 February 2014.

Meanwhile, the S&P BSE Sensex was up 4.70 points or 0.02% at 20,216.63.

On BSE, so far 11.05 lakh shares were traded in the counter as against average daily volume of 5.51 lakh shares in the past one quarter.

The stock was volatile. The stock surged as much as 5.23% at the day's high of Rs 338.60 so far during the day. The stock lost as much as 1.28% at the day's low of Rs 317.60 so far during the day. The stock had hit a 52-week high of Rs 490.15 on 6 January 2014. The stock had hit a 52-week low of Rs 253.95 on 2 August 2013.

The stock had underperformed the market over the past one month till 4 February 2014, sliding 32.79% compared with Sensex's 3.07% fall. The scrip had also underperformed the market in past one quarter, declining 21.85% as against Sensex's 4.84% fall.

The large-cap company has equity capital of Rs 211.89 crore. Face value per share is Rs 5.

Ranbaxy Laboratories' consolidated sales rose 7% to Rs 2860 crore in Q4 December 2013 over Q4 December 2012. Earnings before interest, taxation, depreciation and amortization (EBITDA) was at Rs 270 crore in Q4 December 2013. Adjusted for forex movements and non-routine charges, the margin was above 10% in Q4 December 2013, Ranbaxy Laboratories said in a statement.

The company reported a net loss before taxes of Rs 60 crore for Q4 December 2013 after providing for stock write-off and other costs of Rs 260 crore pursuant to the inclusion of the Toansa plant under certain provisions of the consent decree (CD) by USFDA.

Ranbaxy said its base business recorded growth in Q4 December 2013 over the corresponding previous year period. Branded and OTC category contributed Rs 1480 crore accounting for 52% of total sales in Q4 December 2013. Generics including API category recorded sales of Rs 1380 crore in Q4 December 2013.

Commenting on the company's financial performance, Mr. Arun Sawhney, CEO & MD, Ranbaxy Laboratories said, "Ranbaxy has been strengthening its base business in key markets including India, Eastern Europe & CIS and the USA which has helped us recover our margins. We are facing some major regulatory challenges and are disappointed with the developments. I would like to assure all our stakeholders that we will do whatever is necessary to address all concerns of the USFDA and are committed to resolve them as early as possible".

Ranbaxy Laboratories is an integrated, research based, international pharmaceutical company producing a wide range of generic medicines. Ranbaxy is a member of the Daiichi Sankyo Group.

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