Ranbaxy Labs - Q3 CY12 Results First Cut - Microsec

Ranbaxy Lab posted Q3 CY12 results on 8th Nov 2012. The improvement of base business as well as product exclusivity and R&D income contributes 31% yoy jumped in the top line. In the month of Aug' 2012, the company launched Actos that manage 25% market share in US market. The sales of North American market increased by 60% on account of the product exclusivity and base business improvement while Indian market grew by 13% due to the acute segment. On the other hand, Africa and Latin America showed de-growth due to the currency impact and supply disruption respectively. Normal salary revision along with the recruitment in quality control and distribution increased employee cost by ~15% on yoy basis. During Q3 CY12, Ranbaxy is having forex gain of Rs.554.98 Mn compare to Rs.1358.4 Mn loss on yoy basis on long dated derivative contracts and foreign currency loans.

Ranbaxy has expansion plan in the emerging markets such as Nigeria and Egypt. During Q4 CY12, the company is likely to launch Isotretinoin in the dermatology segment. Ranbaxy is likely to set up manufacturing plant in Malaysia at a cost of $35-40Mn to triple its existing capacity.

We are positive about the company and maintain the target price of Rs.597.

Source : Equity Bulls

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