Results of pharmaceutical companies for the September quarter were a mixed bag.
Ranbaxy Laboratories came in better than expectations at the net profit level, riding on exceptionally high other operating income. Net profit stood at Rs 116.6 crore, against a loss of Rs 394.5 crore a year ago. Profitability was helped by a sharp leash on selling,
general & administration expenses and other operating income, which stood at Rs 170 crore, helped by a licensing income of Rs 75 crore and scrap sales of Rs 50 crore. Revenues declined 8.8%.
GlaxoSmithKline Pharmaceuticals’ numbers were more or less in line. Revenues increased 11.9%, led by good performance in the vaccine segment (on new launches like Rotarix, Cervarix and Infanrix Hexa) and key priority brands. The pharmaceuticals business, which brought in 85% of the revenues, increased 12% given higher contribution from focus brands. Operating profit margins remained more or less flat at 36.9%. Net profit increased 8.6%, hit by lower other income and lower-than-expected margins.
Piramal Healthcare’s numbers were in line, too. Operating margins dropped 280 basis points to 17.7% on account of higher staff and raw material costs due to the low margin operations of Minrad and RxElite integration. Revenues increased 12%, driven by a 16.2% increase in domestic formulations, particularly from anti-infective, anti-diabetic, and dermatology therapy segments. CRAMs business fell 2% due to continuing issues of global slowdown in pharma outsourcing. Net profit increased 45%, helped by forex gains.
Cipla’s results missed street estimates at the revenue level but were slightly better at the net profit level. Revenues increased 6.6%, impacted by slower than expected growth in exports and domestic sales. Exports were impacted due to a fall in revenues from the formulations business. Domestic revenues were impacted due to seasonal variations. Operating performance was strong and margins increased 1080 basis points to 26.39%. This was due to lower raw material costs, attributed to a change in the product mix, with lower contribution from the anti-retroviral segment. Net profit increased 82%, driven by strong operating performance.
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