Ranbaxy Q3 net loss widens to Rs 1,029 cr on forex woes

Ranbaxy Laboratories on Wednesday reported widening of its consolidated net loss to Rs 1,029.72 crore (Rs 10.29 billion) for the third quarter ended December 31, 2014, as higher costs and foreign exchange losses hurt the embattled drug maker.

The company had reported a net loss of Rs 158.94 crore (Rs 1.58 billion) during the October-December period of previous fiscal.

Net sales of the company declined to Rs 2,587.59 crore (Rs 25.87 billion) compared to Rs 2,858.96 crore (Rs 28.58 billion) during the same period of 2013-14, Ranbaxy Laboratories said in a statement.

Shares of the company fell one per cent on the BSE.

"Ranbaxy recorded good growth in India, Russia, APAC & LATAM during the quarter. However, overall sales were impacted by global currency depreciation in some markets," Ranbaxy Laboratories Ltd, CEO & Managing Director, Arun Sawhney said in a statement.

During the current quarter, the company has reviewed the carrying amount of an asset representing Minimum Alternate Tax (MAT) Credit of Rs 822.7 crore and has decided to provide for the same on grounds of conservatism, the company said.

Ranbaxy, which is being acquired by Sun Pharmaceutical Industries in a $4 billion deal, said the merger process is progressing well.

"The merger process is progressing well and we are working towards the completion of the pre-requisites," Sawhney said.

The company said branded and OTC category contributed Rs 1,420.2 crore (Rs 14.20 billion) accounting for 57 per cent of total sales during the quarter. Generics (including first-to-file opportunities)and others posted Rs 1,167.4 crore (Rs 11.67 billion) of sales for during the quarter, it added.

Geographically, the company's domestic sales stood at Rs 590.9 crore (Rs 5.90 billion), a growth of 2 per cent over the corresponding quarter.

In North America, sales during the quarter stood at Rs 896.3 crore.

The company said it has received the regulatory approval to launch new chemical entity Synriam in seven African countries --Nigeria, Uganda, Senegal, Cameroon, Guinea, Kenya and Ivory Coast.

"The product has since been launched in Uganda and will be made available in other countries towards end of Jan 15," it added.

The company said on January 26 it received a communication from USFDA that they have determined that Ranbaxy has forfeited its 180-day exclusivity to sell generic version of digestive disorder medicine Nexium in the American market.

"Ranbaxy is disappointed with the result and is pursuing all available legal options to preserve its rights," it said.

Ranbaxy is facing regulatory issues with the US authorities and currently all the four manufacturing plants of the drug maker in India have been banned from exporting to the US market.

The company's shares ended at Rs 699.75 apiece on the BSE, down 1.01 per cent from their previous close.