The Hindu : Business : Dr. Reddy’s Lab net declines

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Friday, Oct 24, 2008
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Business

Dr. Reddy’s Lab net declines

Special Correspondent

Global generics business up
Company files two ANDAs

HYDERABAD: The net profit of Dr. Reddy’s Laboratories in the second quarter of the current financial year tanked 52 per cent.

The deferment of Rs. 150 crore of tax due to change in German tax laws in the second quarter of 2007-08 resulted in Rs. 252.70 crore of net profit then. If this one-time benefit is excluded, the profit after tax in the second quarter of 2008-09 amounts to an increase of 19 per cent at Rs. 120 crore compared to Rs. 102 crore in the year-ago period, as claimed by the company.

The company became the first pharmaceutical company in India to file its results in accordance with the International Financial Reporting Standards (IFRS), instead of GAAP (generally accepted accounting principles) of the U.S. and India.

Releasing the results, Vice-Chairman and CEO, G. V. Prasad, said: “The pharmaceutical industry is relatively less impacted by the global economic slowdown. Of course, I can’t say it is not impacted.” He said that the overall business of the company had done well. “It has generally been a good quarter for the company,” he said.

Managing Director and COO K. Satish Reddy said overall revenues grew by 30 per cent to Rs. 1,620 crore ($348 million) from Rs. 1,250 crore.

While the average rupee conversion rate was Rs. 43.78 against the dollar, the convenience translation rate of Rs. 46.45 was taken for calculating the results.

Revenues from global generics business were put at Rs. 1,120 crore against Rs. 800 crore. North America, Germany and Russian markets drove the 40 per cent year-on-year growth, while the Indian market remained muted, posting a niggardly nine per cent growth. Income from pharmaceutical services and active ingredients went up by 10 per cent to Rs. 480 crore from Rs. 440 crore.

Mr. Reddy said that the company launched 35 new generic products, filed 24 new generic product registrations and 21 drug master files globally in the second quarter. It filed two abbreviated new drug applications (ANDAs) taking the total number to 128 of which 66 were awaiting U.S.-Food and Drug Administration’s clearance.

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