Dr Reddys Q2 profit up 7.3% at R307.80 crore

Written by fe Bureau | Hyderabad | Updated: Oct 26 2011, 08:45am hrs
Dr Reddys Laboratories (DRL) has reported a consolidated net profit of R307.80 crore during the second quarter, up 7.3%, as compared to R286.82 crore in the same period last year.

Consolidated revenues surged by 21.3% to R2,268 crore from R1,870 crore year-on-year. However, operating profit margins came down to 16.5% in July-September quarter of financial year 2012 as against 17.3% in same quarter the previous year.

The companys sales from global generics increased by 18.1% to R1,614 crore from R1,367 crore and that from pharmaceutical services and active ingredients (PSAI) moved up by 34.4% to R718 crore from R534 crore in the corresponding period of last year. According to Satish Reddy, MD, the company has seen an increased selling, general and administrative SGA expenses due to rise in freight cost and volumes. Its expenses increased by 26.4% to R721.58 crore from R570.87 crore.

Giving a breakup of its revenues, Reddy said that the main contributor for its revenues from the north American market which improved by 43.2% to R630 crore from R440 crore in second quarter ended September 2011. The growth is led by new product launches in the last 12 months and market share improvement in key products. It launched five new products in US, including limited competition products such as fondaparinux and fexofenadine pseudoephedrine D24.

In Russia, DRLs revenues improved by 26.1% to R290 crore from R230 crore, largely driven by volume growth in key brands. OTC portfolio generated growth of 33% and these sales contributed 20% of overall Russia sales. However, sales in CIS region remained flat at R47.70 crore in the second quarter ended September 2011.

The companys sales in Europe, however, declined by 10% to R210 crore because of lower sales in Germany of R120 crore on account of tenders system. The sales from rest of Europe grew by 26% to R93.30 crore basically due to new launches in UK and growth in out-licensing business. In the domestic market, the companys sales in India moved up by 9% to R350 crore from R320 crore in the same period of last year. It launched three new products and its biosimilar portfolio growth registered 22% growth.

For the first half ended September 2011, DRLs consolidated net sales increased to R4,246 crore from R3,554 crore, a growth of 19.5%. Its net profit surged by 14.9% to R570.54 crore from R496.37 crore.

Though the consolidated net profit improved during the second quarter, its standalone net profit for the quarter declined by 37.1% to R138.50 crore from R220.20 crore. Its standalone Ebitda also declined by 17.3% to R269.85 crore from R326.25 crore. Its standalone net sales improved by 26.2% to R1,613 core from R1,278 crore in the similar period of last year.

DRL launched 28 new generic products and filed 17 new product registration and 11 drug master files (DMFs) globally. It received final approval of its olanzapine 20 mg tablets,the generic version of Eli Lillys Zyprexa from the FDA. As on end of September, the cumulative ANDA filings reached at 177 and a total of 76 ANDAs are pending for approval with the FDA. Its R&D expenditure for the quarter touched to R145.94 crore compared to R126.98 crore, a growth of 14.9%.