Dr Reddys net increases 7% to Rs 361 crore

Written by fe Bureau | Hyderabad | Updated: Jul 31 2013, 15:52pm hrs
Dr Reddys Laboratories has registered a 7% increase in its consolidated net profit to touch R360.93 crore from R335.98 crore in the year-ago quarter on account of higher research and development expenditure and higher tax provision.

Total consolidated income grew by 12% to R2,845 crore from R2,541 crore in the corresponding period last year. The earnings per share (EPS) improved marginally to R21.25 from R19.81 in the last period.

As the norm in the pharma industry, the companys R&D expenditure increased by 55.4% to R242.97 crore from R156.36 crore, which is 8.5% of its revenues compared with 6.2% in last period. Besides, the tax provision also increased by 44.6% to R52.78 crore from R36.50 crore.

Giving a breakup of its revenues, sales from pharmaceutical services and active ingredients (PSAI) increased by 6.2% to R587 crore from R553 crore. The sales of global generics increased by 14.9% to R2,190 crore from R1,907 crore and sales of proprietary products declined by 15.7% to R67.9 crore from R81.3 crore.

The company launched 18 new generic products and filed 12 new product registrations. It filed five DMFs globally.

The company said that the generic revenues from North America went up sharply by 37% to R1,087 crore as it launched few key difficult to synthesize products with limited competition during last couple of quarters.

It has filed two ANDAs and cumulatively 64 ANDAs are pending for approval with the USFDA. Out of this, 38 are Para IV and eight products have first-to-file status.

The companys sales in Europe declined by 28% to R157 crore as its sales in Germany declined by 26% to R110 crore.

However, revenues from emerging markets, including Russia, CIS countries improved by 9% to R600 crore.

Its revenue from Russia improved by 4% to R370 crore primarily on account of high base effect of the previous year and changes in the market stocking pattern. The CIS market registered a sales growth of 28% to R80 crore. The sales in RoW increased by 12% to R148 crore.

Revenues in the domestic market remained flat at R350 crore mainly on account of the new pricing policy which led to de-stocking in the trade coupled with the Maharashtra trade strike.