Ranbaxy delivers strong overall business performance; improvement in base business sales, margins
The Board of Directors of Ranbaxy Laboratories Limited (RLL, NSE: RANBAXY, BSE: 500359), at their meeting held today, took on record the unaudited results for the Quarter and YTD ended September 30, 2012 ("Q3'12" and "YTD Sep'12", respectively) under Indian GAAP.
Key Financial Highlights
- Consolidated sales were Rs.26,514 Mn (USD 480 Mn) [Q3'11: Sales Rs.20,232 Mn (USD 442 Mn)]. Sales growth of 31pc over the corresponding quarter.
- Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) was 16pc of Sales at Rs.4,179 Mn (USD 76 Mn) [Q3'11: EBITDA Rs.1,324 Mn (USD 29 Mn)].
- Profit After Tax (PAT) was Rs.7,542 Mn (USD 137 Mn) [Q3'11: Loss of Rs.4,646 Mn (USD 103 Mn)]
- Base business profitability, excluding forex gain continued to improve.
Profitability below the EBITDA line in the Quarter was favourably impacted largely by mark-to-market (MTM) gain on long dated derivatives contracts and foreign currency loans owing to a stronger rupee; the impact was adverse in Q3, 2011.
Financial Performance for YTD ended Sepember 30, 2012 (YTD Sep'12)
- Consolidated sales were Rs.95,209 Mn (USD 1,803 Mn) [YTD Sep'11: Sales Rs.62,180 Mn (USD 1,374 Mn)] Sales growth of 53pc over the corresponding period.
- Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) was 19pc of Sales at Rs.17,699 Mn (USD 341 Mn) [YTD Sep'11: EBITDA Rs.8,057 Mn (USD 178 Mn)].
- Profit After Tax (PAT) was Rs.14,152 Mn (USD 276 Mn) [YTD Sep'11: Rs.830 Mn (USD 19 Mn)]
Commenting on the business results for the quarter, Mr. Arun Sawhney, CEO and Managing Director, Ranbaxy, said, "Ranbaxy's business performance continued to strengthen as planned even in a volatile regulatory and business environment as our focus on key markets, improvement in manufacturing, R and D productivity and heightened level of cost consciousness helped our strong performance. We are confident that these measures will help further strengthen our base business."
Business Highlights Q3, 2012
- The Company maintained leadership in Atorvastatin and Atorvastatin + Amlodipine post exclusivity in May 2012.
- Ranbaxy launched Pioglitazone Hydrochloride as an authorised generic (Actos®; Innovator: Takeda). Brand sales USD 2.7 Bn in the USA (IMS MAT June 2012).
- Ranbaxy launched authorised generic Cevimeline Hydrochloride 30 mg capsules in the USA market. Cevimeline Hydrochloride is sold under the brand name Evoxac®.
- Sales in India grew faster than the growth in the Indian Pharmaceuticals Market, during the Quarter.
Regulatory, Research and Development and Manufacturing
- During the Quarter, 14 regulatory agencies from across the globe including the USA, European Union, Africa agencies etc., inspected Ranbaxy's facilities, in various locations across the world, including India.
- Progress on the implementation of the Consent Decree has been as per plan.
- The Company made 31 Dosage Form (DF) filings and received 43 approvals. For Active Pharmaceutical Ingredients (APIs), Ranbaxy made 12 Drug Master File (DMF) submissions during the Quarter.
- Received approval to set up a Greenfield manufacturing facility by the government of Malaysia. On completion, this facility will triple the existing manufacturing capacity in the focus market for Ranbaxy.
Consolidated sales for the Quarter were Rs.26,514 Mn (USD 480 Mn) as compared to Rs.20,232 Mn (USD 442 Mn) in the corresponding quarter, of the previous year. Emerging markets contributed USD 233 Mn, accounting for ~49pc of total sales. Developed markets recorded USD 216 Mn of sales and contributed 45pc to total sales for the Company. API and others accounted for the rest of the revenue for Q3'12.
- North America: Sales were USD 167 Mn (Rs.9,199 Mn), growth of over 60pc on constant forex over Q3, 2011. USA recorded total sales of USD 152 Mn (Rs.8,403 Mn) in the Quarter; base business sales continued to be healthy.
- India (including Sri Lanka and Ranbaxy Consumer Healthcare): In the home market, Ranbaxy sales were Rs.5,829 Mn (~USD 106 Mn), up 13pc from the corresponding quarter. The IPM slowed down to ~10pc growth levels during the Quarter.
o OTC business (Ranbaxy Consumer Healthcare) contributed Rs.1,049 Mn (~USD 19 Mn), while the acute part of business was impacted by industry-wide slow-down in the anti-infective space.
- East Europe and CIS: The region recorded sales of USD 58 Mn (Rs.3,215 Mn). Romania and Russia sales grew on constant forex basis.
- West Europe: Sales in the region were USD 44 Mn (Rs.2,439 Mn), a growth of 30pc over Q3, 2011. Sales grew in the UK, Germany and Italy.
- Africa: Sales in the region were USD 37 Mn (Rs.2,033 Mn), a decline of (6pc ). The Company entered into an in-licensing agreement with Gilead Sciences to promote access to high quality, low cost generic versions of Gilead's HIV medicines.
- Asia Pacific (including Middle East): The region recorded sales of USD 24 Mn (Rs.1,342 Mn). Sales in LATAM were ~USD 12 Mn (Rs.669 Mn).
- API business and others had revenues of USD 32 Mn (Rs.1,789 Mn).