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[mehak1]

Performance Highlights--

1. CY2007 Net Profit rises 53.3%-  During 4QCY2007, Ranbaxy timed growth of 5.1% and 1% in Net Sales and Profits to Rs1,785 (Rs1,698cr) and Rs188cr (Rs186cr), respectively. For CY2007, Ranbaxy posted Net Sales and Profits of Rs6,590cr and Rs790cr registering a growth of 9.5% and 53.3%,
respectively.

2.  Exports drive growth-  Domestic market and Exports registered growth of 13.0% and 22.9%, respectively. Emerging markets, which contributed 40% of Sales, registered a growth of 13% during 4QCY2007. Organized Markets registered a growth of 24%, with Romania posting Sales of $120mn, a growth of 21%. Dosage Form sales for the year stood at $1,507mn, a growth of 23% (+91% to global sales) and contributed 94% to Global sales.

3.  Margins under pressure-  During 4QCY2007, Operating Margins remained flat 10% (11%). Margins during the period higher vis-à-vis expectations. For CY2007, company posted Operating Margins of 9.8% declining by 277 bp. Decline was mainly on back of reduction in the Gross Margins by 262 bp to
end the period at 45.8%.

4.  CY2008 Guidance-  Going ahead, for CY2008 Ranbaxy is expectable to grow by 18-20% which is excluding the Para IV launches. The company has 18-19 First-To-File (FTF) in the pipeline out of which 7 are under judicial proceeding and for the balance the company expects to receive 180-day exclusivity. Ranbaxy expects Margin expansion to 17.5-18% on the Operating front and thereby
improve the Bottom-line by 20-25%.

World Markets---

In Europe, Ranbaxy clocked rich Sales growth of 37% and 24% to $106mn and $363mn for 4QCY2007 and CY2007, respectively. The company’s European operations timed strong growth led by the key markets of Western Europe i.e., Germany, UK and France, which for the year accounted for 47% of EU Sales and grew by 28%.

Ranbaxy’s UK operations registered a strong growth of 36% to $47mn. UK Sales for 4QCY2007 were $12mn, an increase of 22%. During 4QCY2007, three new products were launched in the UK viz., Risperidone (a day one launch), Alendronate and Isotretinoin taking the total number of new product launches in the year to 8.

For 4QCY2007, in the US markets, Ranbaxy reported Sales of $104mn, a decline of 1%. However, for CY2007, Sales grew by 6% to $415mn, which is excluding sales of the First-to-File (FTF) products ie., Pravastatin in 2007. The company’s performance in the US market was led by an all-round advance in its key business sections of generics, branded and OTC business. The branded business was driven by performance of its flagship brand, Sotret that attained a market leadership position with more than 51% marketshare. Ranbaxy further reinforced its Branded segment with the acquisition of 13 dermatology brands from Bristol Myers Squibb (BMS), which were re-launched in 2HCY2007.

For CY2007, sales in Africa stood at $126mn, an increase of 42% while for 4QCY2007, Sales stood at $37mn, a growth of 22%. All key countries in the African continent registered buoyant growth led by South Africa, Central and South-East Africa and the French West region. South Africa recorded Sales of $53mn for the year, a growth of 18%, while for 4QCY2007, Sales stood at $16mn, a growth of 22%.


Report card--

PE ratio        23.15        18/01/08
EPS (Rs)       16.70        Dec, 07
Sales (Rs crore)    993.32      Dec, 07
Face Value (Rs)         5   
Net profit margin(%) 9.07          Dec, 06
Last bonus            3:5          18/07/02
Last dividend (%)   50        18/10/07
Return on average equity 16.19    Dec, 06