Ranbaxy Laboratories Q1 2007 Net Profit rises 79% to Rs 129 Crores

Gurgaon, India, April 27, 2007

The Board of Directors of Ranbaxy Laboratories Limited (RLL) at their meeting held today, took on record the unaudited results for the quarter ended March 31, 2007. The Company also announced the Consolidated Global Results for the first quarter (Q1) of 2007.

For Q1, the Company achieved Consolidated Sales of Rs. 15,644 Mn [USD 355 Mn] (2006: Rs. 12,753 Mn, USD 287 Mn), a growth of 23%. Profit before interest, depreciation, tax and amortization was Rs. 1,908 Mn [USD 43 Mn] (2006: Rs. 1,423 Mn, USD 32 Mn), an increase of 34%. Operating profit before tax at Rs 1,597 Mn [USD 36 Mn] recorded an increase of 100% ( 2006: Rs 798 Mn, USD 18 Mn). Profit before tax was at Rs 1,642 Mn [USD 37 Mn] (2006: Rs 853 Mn, USD 19 Mn), a growth of 93%. Operating Profit after Tax without considering foreign exchange gains/losses on translation were at Rs 1046 Mn, + 42 %. Profit after tax was at Rs.1,287 Mn [USD 29 Mn] (2006: Rs. 718 Mn, USD 16 Mn), up 79%.

Earnings per share on a fully diluted basis were Rs. 2.61 (2006: Rs. 1.91).

Commenting on the business results, Mr. Malvinder Mohan Singh, CEO and MD, Ranbaxy, said, "Robust growth across geographies driven by new product flow in most of our key markets has been the main theme this quarter. In particular, stellar performances in the Emerging Markets and the European Continent underpin the strong numbers, declared today. I expect this growth to continue and accelerate as we progress through the year.

"During the quarter, Ranbaxy made an entry into Biosimilar segment by signing a global development & marketing agreement with a strategic partner in India, for its first biosimilar product, G-CSF (filgrastim). Ranbaxy will commit its resources to introduce the G-CSF product first in the EU markets and later in the US and other countries. The worldwide market for neutropenia treatment is in excess of USD 4 Billion, while the global G-CSF market is about USD 1.6 Bn.

The Company also signed a term sheet with another strategic partner in India for a global supply agreement of Peptides. The aforesaid alliance will provide the Company with access to the fast growing & niche therapeutic segment of Peptides and will further strengthen the Company's product portfolio in the complex products category. Under the terms, Ranbaxy has the opportunity to acquire a strategic stake of 14.9%.

During the Quarter, Ranbaxy filed 3 ANDAs with the US FDA and received approval for 4 taking the cumulative filings to date to 199 with 111 approvals. In the European Union (EU), the Company made 10 National filings in 9 Reference Member States (RMS) and received 9 approvals in 4 RMS.

Source : Equity Bulls

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