Views on Ranbaxy Labs 4QFY2014 results: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP-Research- Pharma, Angel Broking) on Ranbaxy Labs 4QFY2014 results:

"Ranbaxy labs posted results better than expected, on the operational front. Ranbaxy Labs, posted sales of Rs. 2859cr V/s Rs. 2,758cr expected, posting a yoy growth of 7.0%. The growth was all rounded, with both India and exports growing robustly. Indian formulation sales posted a growth of 8.5% yoy, while, the export sales in US grew by 19.7%, Eastern Europe & CIS grew by 20.4%, while eastern Europe grew by 4.4% yoy. On the other hand, APTAC & LATAM and Africa posted a dip in sales. The main positive factor was its OPM, which came in at 7.9% v/s 6.6% (2.5% in 4QCY2012), mainly on back of Gross Profit Margin improvement, which expanded by 665bps. However, on back of the extra-ordinaries, the company posted a net loss of Rs. 158cr V/s Rs. 493cr, adjusted for which, the adjusted net loss was around Rs. 3cr V/s Rs. 72cr. We remain neutral on the stock."

Source : Equity Bulls

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