Close above 5,620 on the Nifty maybe the first sign of recovery
It remains to be seen whether the company can turn itself around after settling issues with the US Department of Justice even as it managed to narrow its net loss in the June quarter
Ranbaxy Laboratories Ltd said its net loss during the first quarter narrowed to Rs608.8 crore on depreciation of Indian rupee and change in accounting standards.
For the quarter to end-June, the drug maker, a unit of Japanese Daiichi Sankyo Co Ltd said its net loss narrowed to Rs608.9 crore from Rs925.7 crore while its total revenues, including sales, declined to Rs1469.9 crore from Rs1587 crore, same period last year.
Arun Sawhney, chief executive and managing director of Ranbaxy, said, “We successfully concluded the previously disclosed investigation by the US Department of Justice (DOJ). With the payment of $500 million provisioned earlier, we have settled both the civil and criminal settlements with the DOJ. This should allow us to focus our resources and energies to drive future growth.”
During the quarter, the drug maker’s revenues from API business increased 31% to Rs226.3 crore driven by focus on select markets and product mix. During the quarter, the company filed one ANDA was filed for the US market.
Sales in north America, during the June quarter, was Rs851.6 million, lower than last year, due to expiry of select exclusivities. However, it has a strong sales base in Absorica. The company says that its market share gain in Absorica, isotretenonin NDA has been promising and it holds a share of 13.7%, overall.
Some key highlights of Ranbaxy products are:
The exclusivity period for Pioglitazone hydrochloride authorised generic came to an end in mid-February 2013 and the company holds a market share of 24%;
Ranbaxy has 43% market share in Cevimeline hydrochloride 30 milligrams capsules in the US market.
Ranbaxy closed Wednesday 4.6% up at Rs281.9 on the BSE, while the 30-share Sensex ended the day marginally down at 18664.9.
The company’s overseas division, Jaguar Land Rover, has done exceptionally well, largely thanks to rupee depreciation and higher sales take off leading to an 8% increase in revenues
Tata Motors reported a first quarter consolidated net profit of Rs1,726 crore from Rs2,245 crore despite 8% increase in its revenues mainly due to poor sales in India.
For the quarter to end-June, the automaker said its total revenues, including sales, grew 8% to Rs46,785 crore on consolidated basis. “The business was affected by a weak operating environment in the standalone business, but it was offset by strong demand, growth in volumes, richer product mix and favourable foreign exchange at Jaguar Land Rover (JLR),” the company said in a release.
During the quarter, the Tata group company said its sales, including exports fell 19% to 1.54 lakh units as weak macro-economic environment and competitive pressures on pricing, continued to impact the operations during the quarter.
Jaguar Land Rover has performed well, largely thanks to depreciating rupee. Following strong response to its new products and powertrain options, Jaguar’s wholesales and retail volumes grew 57.8% and 28% to 18,577 units and 17,459 units, respectively during the June quarter.
On Wednesday, Tata Motors ended 2.96% down at Rs278.8 on the BSE, while the benchmark Sensex ended marginally down at 18664.9.
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