Ranbaxy Q1 Results – 52% fall in profits

India’s one of the best laboratories Ranbaxy reported a 52% fall in Q1.currency volatility is one of the reasons for this fall in profits, so Managing Director and chief executive Atul Sobti are departing from Ranbaxy laboratories. President of the company Arun Sawhney will takeover Managing Director place.

Ranbaxy reported an Q1 net profit of $72 million compared with a profit of $139 million in 2010 Q1. This is due to large foreign currency gains in the June 2009 quarter, which didn’t happen this year as expected, said Bino Pathiparampil, an analyst at Mumbai's IIFL Capital.

As per Bino, this was less than expected, reflecting bumper U.S. sales of Ranbaxy's generic version of Valtrex, a blockbuster herpes drug made by GlaxoSmithKline.With out US business they could have not reached this level, IF US markets were not there for Ranbaxy, then the profit could go down further.

The stock closed down 0.5 %, at Rs 445.2 ($9.5) a share, on the Bombay Stock Exchange (BSE) in an flat market.