Continuing its initial rally, shares of drug major Ranbaxy Laboratories on Thursday surged nearly 29 per cent, adding Rs 3,279 crore (Rs 32.79 billion) to its market value, after the company reported a narrowed consolidated net loss of Rs 524.24 crore (Rs 5.24 billion) for the second quarter ended June 30, 2013.
After surging 33.98 per cent to Rs 377.70 in intra-day trade, shares of the drug firm settled 27.49 per cent higher at Rs 359.4 on the BSE.
On the NSE, the stock gained 28.60 per cent to close at Rs 362.
Led by the rally in the stock, the market capitalisation of the company shot up by Rs 3,279 crore (Rs 32.79 billion) to Rs 15,206 crore (Rs 152.06 billion).
"Results were better-than-expected that is why the stock bounced back," said CNI Research CMD, Kishor Ostwal.
The stock had underperformed the market over the past one month, sliding 17.72 per cent compared with the Sensex's 3.41 per cent fall.
Ranbaxy Laboratories yesterday reported a consolidated net loss of Rs 524.24 crore (Rs 5.24 billion) for the second quarter, mainly due to the impact of rupee depreciation on foreign currency loans and goodwill impairment in its operations in France.
The company had posted a net loss of Rs 585.72 crore (Rs 5.85 billion) for the corresponding period previous fiscal.
Net sales of the company declined to Rs 2,633.20 crore (Rs 26.33 billion) for the second quarter, as against Rs 3,204.59 crore (Rs 32.04 billion) in the same period of previous year.
For the quarter ended June 30, 2013 sales in North American market were at Rs 851.6 crore (Rs 8.51 billion).
In the USA, it was at Rs 770 crore (Rs 7.7 billion), which is lower in comparison to the same quarter last fiscal due to large contribution to sales from exclusivity opportunities, Ranbaxy said.
In India sales for the quarter stood at Rs 542.6 crore (Rs 5.42 billion) in-line with the corresponding quarter.