Ranbaxy 3rd-qtr 2010 net profit rockets 168% as sales rise 13%

Leading Indian drugmaker Ranbaxy Laboratories (RANB: BO), which is 64% owned by Japan’s Daiichi Sankyo (TKO: 4568), has reported consolidated sales of $406 million, a rise of 13% over the like 2009 period. Earnings before interest, tax, depreciation and amortization (EBITDA) were at $29 million, a margin of 7% to sales, but well down on the $44 million reported last year.

Most importantly, the Indian firm, which has been badly affected by manufacturing compliance problem with the US Food and Drug Administration, returned into the black, with profit after tax of $67 million, a leap of 168%.

Commenting on the business results for the quarter, Arun Sawhney, managing director, Ranbaxy, said: “Our key markets continued to perform well attributable in large measure to balanced sales across geographies. This has also been aided by the favorable forex movement. As we move forward, our focus will be on bettering operational performance, maximizing synergies with Daiichi Sankyo and on seeking a speedy resolution to the challenges in the USA.”