Ranbaxy suffers Rs 524-cr April-June loss on ` fall, French summer woes
8 Aug 2013 10:45 PM GMT
Drug major Ranbaxy Laboratories on Wednesday reported a narrowed consolidated net loss of Rs 524.24 crore for the second quarter ended 30 June, 2013, mainly due to the impact of rupee depreciation on foreign currency loans and goodwill impairment in its operations in France.
The company had posted a net loss of Rs 585.72 crore for the corresponding period previous fiscal, Ranbaxy Laboratories said in a statement.
'The depreciation of the INR (rupee) against the USD, though favourable to Ranbaxy's export business, had an adverse impact on the current quarter profitability.
'This was mainly on account of application of the accounting standards that require marking to market the entire derivatives and foreign currency denominated loans outstanding,' Ranbaxy said.
There was a net charge of Rs 540.3 crore during Q2 of FY 13 and Rs 495.4 crore during H1 of 13 on the P&L on account of the forex items, it added.
The macroeconomic environment continued to be challenging in certain countries in the western Europe. Specifically in France, the generic pharma industry has been impacted by continuing pricing and trade challenges, Ranbaxy said.
'The company has accordingly taken an impairment of goodwill of Rs 119.2 crore in France in line with the accounting standards,' it added.
Net sales of the company declined to Rs 2,633.20 crore for the second quarter, as against Rs 3,204.59 crore in the same period of previous year.
Commenting on the overall performance, Ranbaxy CEO & managing director Arun Sawhney said in a conference call that absolute sales were lower during the second quarter of this fiscal compared to the corresponding period sales of April-June period of financial year 2011-12 as these included contribution from exclusivities, mainly in the US.
The company had posted a net loss of Rs 585.72 crore for the corresponding period previous fiscal, Ranbaxy Laboratories said in a statement.
'The depreciation of the INR (rupee) against the USD, though favourable to Ranbaxy's export business, had an adverse impact on the current quarter profitability.
'This was mainly on account of application of the accounting standards that require marking to market the entire derivatives and foreign currency denominated loans outstanding,' Ranbaxy said.
There was a net charge of Rs 540.3 crore during Q2 of FY 13 and Rs 495.4 crore during H1 of 13 on the P&L on account of the forex items, it added.
The macroeconomic environment continued to be challenging in certain countries in the western Europe. Specifically in France, the generic pharma industry has been impacted by continuing pricing and trade challenges, Ranbaxy said.
'The company has accordingly taken an impairment of goodwill of Rs 119.2 crore in France in line with the accounting standards,' it added.
Net sales of the company declined to Rs 2,633.20 crore for the second quarter, as against Rs 3,204.59 crore in the same period of previous year.
Commenting on the overall performance, Ranbaxy CEO & managing director Arun Sawhney said in a conference call that absolute sales were lower during the second quarter of this fiscal compared to the corresponding period sales of April-June period of financial year 2011-12 as these included contribution from exclusivities, mainly in the US.
Next Story
