July 24: Ranbaxy Laboratories today reported its first profit in four quarters, buoyed by an impressive forex gain of Rs 800 crore.

The country’ largest drug maker posted a net profit of Rs 675.4 crore for the second quarter ended June, after suffering losses in the previous three quarters. Ranbaxy’s net profit was Rs 23.73 crore in the corresponding quarter of the previous year.

Total income, however, dipped 1.87 per cent to Rs 1,795.3 crore in the first quarter of this fiscal from Rs 1,829.6 crore in the year-ago period. Ranbaxy was acquired by Japanese firm Daiichi Sankyo last year. The Supreme Court today allowed Daiichi’s open offer for Zenotech, in which the Japanese firm had come to control around 46 per cent following its takeover of Ranbaxy.

“Challenges have continued in this quarter for the global economy and the pharmaceutical industry, affecting liquidity and demand. Our balanced market mix with a clear focus on emerging markets have helped us mitigate these pressures,” said Sobti.

Jet loss

Jet Airways has suffered a loss of Rs 225.33 crore for the first quarter of the fiscal ended June 30 because of recession. The airline had posted a net profit of Rs 143.38 crore in the year-ago period.

Income from operations fell to Rs 2,085.04 crore from Rs 2,830.02 crore.

Jet said it incurred losses on account of lower yields from intense competition and over-capacity in the market, besides high interest cost.

Eveready profit

Eveready Industries has reported a net profit of Rs 16 crore in the first quarter compared with Rs 3 crore a year ago.

Net sales were at Rs 232 crore against Rs 119 crore in the year-ago period.

Hind Motors

CK Birla group company Hindustan Motors has reported a loss of Rs 22 crore in the first quarter against a loss of Rs 8 crore a year ago.

Net sales stood at Rs 120 crore compared with Rs 189 crore a year earlier.

Ranbaxy

During the quarter under review, Ranbaxy reported a forex gain of Rs 806 crore. It had faced a forex loss of Rs 918 crore in January-March 2009, said Atul Sobti, managing director of Ranbaxy Laboratories.

In the first quarter, emerging markets contributed 57 per cent to the company’s global sales, which stood at about Rs 1,795 crore, a decline of 7 per cent over the same period last year.

The Ranbaxy management said the company would focus on profits and cash flow and not chase revenues at the cost of profitability.

The pharma major was also on track for the launch of the generic version of Valtrex.

On Daiichi Sankyo, the management said Japan was a key priority in the generic market. Indian market, it said, would soon see the launch of Daiichi Sankyo products.

Interest and finance charges jumped to Rs 243.60 crore as compared to Rs 134.62 crore. However, expenditure came down to Rs 2435.73 crore (Rs 3458.66 crore) reflecting the lower fuel costs due to lower crude oil prices.

In a filing to the stock exchanges, Jet Airways added that it has equity and preference investments aggregating to Rs 1645 crore in JetLite (India) Ltd) a subsidiary and an amount of Rs 619.99 crore has been advanced as interest free loan as on June 30. ``The net worth of the subsidiary is fully eroded due to the losses incurred by it’’, Jet Airways added.

Though airlines have gained via lower fuel costs, these have been offset by lower yields emanating from the slowdown. The International Air Traffic Association has estimated that global airline industry will have to face a loss of $ 9 billion in 2009 and of this nearly $ 2 billion is accounted by domestic airlines. IATA added that though fuel cost will come down this year, the reduction will be more than offset by revenue decline.

“The company continues to implement cost control measures and rationalisation of routes to be able to compete in a dynamic environment, all of which will result in arresting losses incurred b it,” it added.

“We expect a 10 per cent growth this year against last year’s 8 per cent de-growth, which is expected to be arrested this year,” Eveready executive vice-chairman and managing director Deepak Khaitan said.