Hyderabad, Oct 20: Dr Reddy's Laboratories Ltd has recorded a 20 per cent fall in the net profit for the first six-month period ended September 30, 1999 despite a 7 per cent increase in the total sales for the same period.During the second quarter, it has reported a net profit of Rs 11.96 crore as against Rs 16.85 crore for the same period in the previous year.
As per the unaudited financial results taken on record by the board at its meeting here on Wednesday, it has posted a sale income of to Rs 239.69 crore for the first half-year in the current as against Rs 223.74 crore the corresponding period last year.
The company has stated that the bulk drugs business could not match the growth in the domestic formulations business due to intense competition, dumping and over supply leading to a steep fall in prices. The revenues from bulk business fell from Rs 45.41 crore to Rs 35.92 crore during the period under review, the company statement said.
During the period under review, DRL has recorded a net profit of Rs 30.65 crore before providing Rs 10 crore towards provision for bad debts (anticipated against Russian operations) as against Rs 38.29 crored for the identical period last year.
For the second quarter, the company has provided a tax provision of Rs 3 crore.
The finished dosages have contributed 56 per cent of the total turnover for the second quarter. The statement said, "the company has worked out a strategy to build on the base established for the finished dosages to achieve a overall growth in the subsequent quarters in the year".
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.