Strong quarterly performances for Indian pharmaceutical firms

A number of major Indian pharmaceutical companies have posted highernet earnings in the latest quarters, mainly due to increased sales, staff reductions and lower raw material costs, reports the Marketletter's New Delhi correspondent, Ajoy Sen.

Ranbaxy's earnings in the fourth quarter ended December 31, 2000, jumped 50.5% to 483 million rupees ($10.4 million), compared with the like, year-earlier figure, while sales rose 14.8% to 4.79 billion rupees. However, the full-year figure failed to match fourth-quarter growth, as Ranbaxy's net profit fell 8.1% to 1.81 billion rupees, largely as a result of the firm receiving zero technology licensing income during the year. Turnover increased 11.7% to 17.42 billion rupees.

During the year, Ranbaxy, which has always enjoyed a comfortable export cushion, crossed the half-way mark towards its global sales target of $1 billion by 2004. The company noted its R&D spending rose almost 25% to 594 million rupees in 2000.