Hit by a $144-million mark-to-market loss, India’s largest drug maker Ranbaxy Laboratories posted a net loss of $103 million (Rs 465 crore) for the third quarter ended September. The company had registered a net profit of $66 million (Rs 308 crore) during the corresponding quarter of the previous year.
The company shares on the Bombay Stock Exchange dropped 4.31 per cent to end at Rs 475.4 a share at close on Wednesday. The consolidated sales during the period were $443 million (Rs 2,028 crore), about 10 per cent higher than the net sales of $404 million (Rs 1,880.9 crore) during the comparable quarter in 2010.
While $89 million of the notional mark-to-market loss came from derivative transactions, $55 million was registered on account of the additional loan burden due to the fluctuations in foreign currency value of the $600 million loans of Ranbaxy.
MTM is an accounting requirement to indicate the notional loss or gain for unrealised debts or savings due to foreign currency fluctuations.
Of the total sales, emerging markets, including India, contributed $262 million or 60 per cent. Developed markets such as the USA recorded $145 million and contributed 33 per cent to the total sales for the company. API and others accounted for the rest, a Ranbaxy statement said.
The Indian revenues for the quarter stood at Rs 515.7 crore ($113 million), up from Rs 4,84.4 crore ($104 million) during the previous comparable quarter. European region recorded sales of $72 million (Rs 330.8 crore), a growth of 21 per cent year-on-year, the company said.
Ranbaxy said it has delivered strong base performance during the quarter under review.
In a conference call with financial analysts, Ranbaxy officials expressed confidence in monetising its 180 day exclusive marketing opportunity to sell the generic version of cholesterol lowering drug Lipitor in the USA after its patent expires on November 30. If successful, Ranbaxy’s Lipitor generic could fetch over $ 650 million during the six month exclusivity period, analysts feel.
