Ranbaxy Lab slips as net loss widens in Q3

Ranbaxy Laboratories fell 0.82% to Rs 701.10 at 15:20 IST on BSE after the company reported consolidated net loss of Rs 1029.72 crore in Q3 December 2014, higher than net loss of Rs 158.94 crore in Q3 December 2013.

The Q3 result was announced during market hours today, 28 January 2015.

Meanwhile, the S&P BSE Sensex was down 6.71 points or 0.02% at 29,564.33.

On BSE, so far 4.54 lakh shares were traded in the counter as against average daily volume of 1.30 lakh shares in the past one quarter.

The stock was volatile. The stock rose as much as 2.55% at the day's high of Rs 724.95 so far during the day, which is a record high for the counter. The stock fell as much as 3.23% at the day's low of Rs 684 so far during the day. The stock had hit a 52-week low of Rs 306.05 on 27 January 2014.

The stock had outperformed the market over the past one month till 27 January 2015, surging 15.06% compared with the Sensex's 8.55% rise. The stock had also outperformed the market in past one quarter, jumping 18.29% as against Sensex's 10.53% rise.

The large-cap pharma firm has equity capital of Rs 212.83 crore. Face value per share is Rs 5.

Ranbaxy Laboratories' total income declined 10.23% to Rs 2629.52 crore in Q3 December 2014 over Q3 December 2013. Sales fell 9.49% to Rs 2587.60 crore in Q3 December 2014 over Q3 December 2013.

During the current quarter, the company has reviewed the carrying amount of an asset representing minimum alternate tax (MAT) credit of Rs 822.70 crore and has decided to provide for the same on grounds of conservatism, Ranbaxy Lab said in a statement.

Commenting on the company's Q3 performance, Arun Sawhney, CEO & MD, Ranbaxy Lab said, "Ranbaxy recorded good growth in India, Russia, APAC & LATAM during the quarter. However, overall sales were impacted by global currency depreciation in some markets. During the quarter, we introduced India's first new chemical entity (NCE), Synriam in Africa which is a new and convenient therapy option for patients suffering from malaria".

Commenting on the merger with Sun Pharmaceutical Industries, Mr. Sawhney said, The merger process is progressing well and we are working towards the completion of the pre-requisites.

The Competition Commission of India (CCI) had on 5 December 2014 conditionally approved the merger between Ranbaxy Laboratories and Sun Pharmaceutical Industries. A total of 7 products, 6 of Ranbaxy and 1 of Sun Pharma are mandated to be divested as a pre-condition to the clearance of the merger. Approval from FIPB for the merger was received on 15 December 2014. USFTC approval for the merger is awaited. The next date of hearing of High Court of Punjab and Haryana is 2 February 2015, Ranbaxy Lab said in a statement.

Ranbaxy Laboratories is an integrated, research based, international pharmaceutical company producing a wide range of quality, affordable generic medicines, trusted by healthcare professionals and patients across geographies.

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