Dr Reddy?s net profit declines 60% at Rs 475 crore

The total income has decreased from Rs 4,084.3 crore to Rs 3,585 crore, the audited results as per the Indian GAAP. This was primarily due to the pricing pressure, temporary raw material supply constraints, and higher inventories with certain customers.

Announcing the results, GV Prasad, CEO and vice chairman, said that the performance of the core business would help to drive its overall future growth. “The year FY08 has been interesting after multiple upsides such as pricing regulations, shortfall in raw material constraints, etc. However, we have created a base for the CPS, APIs, and generic business, and hope to launch more products in its global generics business,” he said.

For the quarter ended March 31, 2008, the company has posted a net profit of Rs 162.2 crore, as compared to Rs 268.9 crore for the quarter ended March 31, 2007 thus registering a 39.6% fall. Total income has decreased from Rs 1,151 crore for the quarter ended March 31, 2007 to Rs 1,038.4 crore for the quarter ended March 31, 2008.

According to consolidated results for the year ended March 31, 2008, the group has posted a net profit of Rs 438.13 crore for the year ended March 31, 2008, as compared to Rs 965.8 crore for the year ended March 31, 2007. Total income has decreased from Rs 6,641.7 crore for the year ended March 31, 2007 to Rs 5,195.4 crore for the year ended March 31, 2008.

However, under US GAAP results, the group has posted a net profit of Rs 467.8 crore for the year ended March 31, 2008, as compared to Rs 932.6 crore for the year ended March 31, 2007. Revenue has decreased from Rs 6,509.5 crore for the year ended March 31, 2007 to Rs 5000.5 crore for the year ended March 31, 2008.

The company would be launching about 11 new products in the US, 10 in Europe, 20 in India, 5 in Russia, and 44 in RoW. Overall, sales have touched Rs 5,001 crore on a net profit of Rs 468 crore. The company has invested $140 million in building capacities and the future investments.