The consolidated net profit of Dr. Reddy's Laboratories declined by 14 per cent to Rs. 209.60 crore in the quarter ended June 30, 2010, from Rs. 244.50 crore in the corresponding period last year. Revenue decreased by 7 per cent to Rs. 1,683 crore from Rs. 1,818 core.
Releasing the results at a press conference here on Thursday, CEO G. V. Prasad, and Managing Director,Satish Reddy, said that excluding the revenues from sumatriptan in the previous year, the year-on-year growth was 4 per cent.
Attributing the decline in profits and revenue to ‘slow growth', Mr. Reddy said the company could not launch its product Allegra D24 in the U.S. due to a court injunction. He said legal remedies were being explored and expressed the hope that it would be launched by the end of the year, after a successful outcome of the legal case.
Also, there was slower offtake of some other launches in the U.S. The revenues from North America declined to Rs. 390 crore from Rs. 600 crore in the quarter under reference. Besides, there was also an 18 per cent de-growth in Germany. Overall, revenues from Europe decreased to Rs. 190 crore from Rs. 210 crore.
