Dr. Reddy's Laboratories has announced an adjusted net profit of Rs.1,076 crore ($242 million) for 2010-11 with a 17 per cent growth over the profit achieved in the previous year, Rs.921 crore ($207 million).
Announcing the unaudited consolidated financial results for the year ended March 31, 2011, under the International Financial Reporting Standards (IFRS) here on Friday, company Managing Director and Chief Operating Officer K. Satish Reddy termed the profit posted as significant in spite of “modest growth in revenues” and attributed it to good margins in the U.S.
The company's revenues had marginally up by 6 per cent at Rs.7,469 crore ($1.70 billion) in 2010-11 compared to Rs.7,027 crore ($1.60 billion) in the previous financial year. The results were largely impressed by the company's performance in the fourth quarter as it posted revenue of Rs.2,017 crore with 23 per cent growth over the last quarter (Rs.1,642 crore) and adjusted profit of Rs.307 crore with 57 per cent growth, he explained.
Rise in expenses including investment for acquisitions and workforce, delay in launching new products and loss in tenders in Germany contributed to the modest growth in the company's revenues during 2010-11, Mr. Reddy stated. However, numbers were encouraging in North America, Russia, CIS counties and India, he noted.
Expenditure on research and development was 7 per cent of total sales in 2010-11 against 5 per cent in the year before. He projected it to be about 8 per cent this year mostly on bio-similars, proprietary products and generics.
Chief Executive Officer G. V. Prasad stated that they had launched 135 generic products and filed for 107 new product registrations and 57 (drug master files (DMFs) during 2010-11. On the outlook for the company in the current year, he stated that they were expected buoyant performance based on emerging markets business, improved customer orders and flow of revenue from recent acquisitions.
