Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Ranbaxy Posts Unexpected Quarterly Loss as Currency Declines

Aug. 7 (Bloomberg) -- Ranbaxy Laboratories Ltd., India’s largest drugmaker, reported an unexpected loss in the second quarter, dragged by a decline in the rupee.

The loss in the three months to June narrowed to 5.24 billion rupees ($85.6 million) from 5.86 billion rupees a year earlier, Ranbaxy said in a statement. That compared with the median estimate for a 1.29 billion rupees profit. Sales dropped 18 percent to 26.3 billion rupees from 32 billion rupees a year earlier, it said.

Ranbaxy, struggling with charges over the safety of its drugs, had a loss of 3.67 billion rupees in the quarter because of the decline in the rupee. India’s currency has declined about 11 percent this year against the dollar and is the worst-performing currency in Asia after Japan.

The rupee’s decline adversely affected profitability because of “accounting standards that require marking-to-market the entire derivatives and foreign currency denominated loans,” the company said in a statement. “The macro economic environment continued to be challenging in certain countries in Western Europe,” Ranbaxy said.

The shares rose 4.3 percent to 281.5 rupees at 3:30 p.m. close in Mumbai before the announcement. The stock has fallen 44 percent this year, compared with a 3.9 percent drop in the benchmark S&P BSE Sensex.

To contact the reporter on this story: Kartik Goyal in New Delhi at kgoyal@bloomberg.net

To contact the editor responsible for this story: Arijit Ghosh at aghosh@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.