Ranbaxy Laboratories shares tank 6% on weak earnings

Shares of Ranbaxy Laboratories on Wednesday slumped 6 per cent after the company posted a consolidated net loss of Rs 454.16 crore for the quarter ended September 30, 2013.

The drug major's scrip tumbled 5.63 per cent to Rs 363.90 on BSE.

On NSE, the scrip lost 5.99 per cent to Rs 362.35.

However, the scrip later recovered some of the early losses and was trading 0.57 per cent lower at Rs 383.45 on BSE.

"Ranbaxy Labs posted lower-than-expected numbers on the OPM (operating profit margin) and the net profit front," said Sarabjit Kour Nangra, VP - Research Pharma, Angel Broking.

Ranbaxy Laboratories had on Tuesday posted a consolidated net loss of Rs 454.16 crore for the quarter ended September 30, 2013, due to foreign exchange charges and one-time provision made for the Mohali plant, which has come under the USFDA scanner.

The company had posted a net profit of Rs 754.17 crore during the same period of the previous year.

The depreciation of the rupee against the dollar, though favourable to Ranbaxy's export business, had an adverse impact on the company mainly due to applying of accounting standards that require mark-to-market the entire derivatives and foreign currency denominated loans outstanding, Ranbaxy Laboratories had said.

"There was a charge of Rs 360 crore during Q3, 2013 and Rs 760 crore during YTD (September 13) on account of these forex items mentioned above," it added.