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  • OCTOBER 24, 2000

Ranbaxy ‘misses’ milestone payment

Ranbaxy has reported a net profit of Rs 531 m on a turnover of Rs 4,641 m for the third quarter ended September 2000. While the turnover has improved 13% which is slightly higher than the overall industry growth, the net profit performance is not comparable. This is because last year’s second quarter results include the technology licensing income of Rs 430 m.

While the details of the gross profit, interest and depreciation are not available, the net profit quarter on quarter has improved at least over 40%. The results are in line with our projections. However we have added a milestone payment of Rs 225 m (from its deal with Bayer) which the company expects to receive in the last quarter.

The stock quotes at a price of Rs 629 which implies an earnings multiple of 34 times annualised earnings.

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