Dr. Reddy’s Laboratories, which announced its unaudited financial results for the third quarter ended December 31, 2009, posted a consolidated loss of Rs. 522 crore, against a net profit of Rs. 244.50 crore in the year-ago period.
Consolidated revenues stood at Rs. 1,730 crore in the quarter under review against Rs. 1,842 crore, a decline of six per cent.
Addressing a media conference here on Wednesday, G. V. Prasad, Vice-Chairman and CEO and Satish Reddy, Managing Director, said that the decline was mainly due to ‘impairment’ of goodwill in the company’s Betapharm unit in Germany and the flat growth in North America. They said they company had to write down the ‘Beta’ brand, its tangible assets after severe erosion of prices in Germany than they had expected from the previous year’s levels.
In global generics, Russia contributed an impressive growth of 45 per cent after its market started recovering and revenues in India registered a growth of 34 per cent led by key brands of Omez, Nise, Stamlo Beta, Reditux and Stamlo.
Mr. Satish Reddy said the adjusted profit after tax (PAT) was Rs. 230 crore for the quarter.
Adjusted PAT for nine months of this fiscal was Rs. 730 crore as against Rs. 510 crore in the same period in the previous year, a growth of 43 per cent.
The company is optimistic about its top-line and bottom-line growth next year though it had revised guidance for the current full year to single digit from double digit growth announced earlier.
During the quarter, the company completed USFDA audit on its facilities in Hyderabad and Visakhapatnam on a positive note. It has launched 27 new products. On the forex front, it posted a loss of Rs. 4.40 crore during the quarter.