Revenues cross $2 billion in 2011-12
Revenues of Dr. Reddy's Laboratories crossed the $2 billion-mark at an average dollar rate of Rs.47.9 in 2011-12, with a growth rate of 30 per cent over the previous year.
Overall, the year 2011-12 had been a good one with a revenue of Rs.9,674 crore, and a net profit of Rs.1,531 crore with 42 per cent growth rate, said G. V. Prasad, Chief Executive Officer, and Satish Reddy, Managing Director.
Announcing the consolidated results for the fourth quarter and full year ended March 31, 2012, here on Friday, Mr. Reddy attributed the good growth mainly to the revenues from global generics key markets of North America and Russia which grew by 68 per cent and 22 per cent, respectively.
Revival of pharmaceutical services and active ingredients sectors, good contribution from the over-the-counter business and the limited competition products were the other key factors that boosted the company's performance, he said.
Revenues from global generics segment stood at Rs.7,024 crore, with U.S. market contributing Rs.3,184 crore, Russia- Rs.1,326 crore, and India, Rs.1,293 crore. “We are not happy with the performance in India. Domestic business grew by 11 per cent while the market growth was estimated at 15 per cent. We are working towards improving the sales,” Mr. Reddy said.
Revenues from Europe at Rs.826 crore, however, declined by 2 per cent over that of the previous year due to happenings in the German market and serious pricing pressures, he said.
In 2011-12, the company launched 16 products in the U.S., 23 in India, 14 in Russia and CIS, 28 in Europe and 60 in rest of the world, including South Africa.
Revenues for the fourth quarter ended March 31, 2012, stood at Rs.2,658 crore with a 32 per cent growth over the corresponding period in the previous year. The net profit grew 38 per cent to Rs.423 crore.
About the outlook for 2012-13, Mr. Reddy said the company expected to maintain a similar growth pace, depending on the approval of products in time.
The research and development expenditure which remained at 6 per cent of sales in 2012 was expected to be 7-8 per cent.