Financial Daily from THE HINDU group of publications
Friday, Oct 25, 2002
Corporate Results - Pharmaceuticals
Dr Reddy's Q2 net drops on lower fluoxetine sales
HYDERABAD, Oct. 24
DR Reddy's Laboratories Ltd has registered a fall in both turnover and net profit for the second quarter of the current fiscal ended September 30, 2002. The main reason for the poor performance was the absence of sales contribution from fluoxetine, the major earner in the corresponding quarter of previous year. Fluoxetine enjoyed a one-time 180-day marketing exclusivity in the US market.
According to the unaudited financial results taken on record by the board here on Thursday, net sales fell by 13.45 per cent at Rs 427.78 crore from Rs 494.31 crore in the same quarter the previous year, other income dropped by 17.94 per cent at Rs 16.74 crore (Rs 20.4 crore) and operating profit declined 18.66 per cent at Rs 127.08 crore (Rs 156.25 crore), while net profit dipped 30.83 per cent at Rs 99.2 crore (Rs 143.43 crore).
For the period under review, the company incurred an expenditure of Rs 317.44 crore (Rs 358.46 crore) and provided Rs 1.31 crore towards interest (Rs 1.43 crore), Rs 14.42 crore towards depreciation and amortisation of brand acquisition cost (Rs 12.16 crore), Rs 13.66 crore towards taxation (Rs 19.34 crore) and availed of deferred tax benefit of Rs 1.51 crore (Rs 20.11 crore).
On the paid-up equity base of Rs 38.26 crore as on September 30, 2002, the earnings per share of Rs 5 each stood at Rs 12.97 (Rs 18.98).
US GAAP net down 58 pc
The fall in profit was significantly higher as per the US GAAP for the quarter under review. The revenue stood at Rs 492.8 crore (Rs 512.2 crore), a fall of four per cent, operating profit stood at Rs 92.6 crore (Rs 222.7 crore), a decline of 58 per cent, while net profit amounted to Rs 95.3 crore (Rs 212.8 crore), a steep fall of 55 per cent.
However, according to the company, the current quarter consolidated US GAAP financials were not comparable with earlier stand-alone Indian GAAP releases of the company.
Stating that the four per cent fall in revenues was due to decrease in sales of generics, the company said the figures of corresponding quarter included revenues of Rs 172.4 crore from fluoxetine.
Excluding fluoxetine, the revenues for the current quarter registered a growth of 45 per cent, the company said. Similarly, the company said excluding fluoxetine, net profit increased by 118 per cent during the current quarter.
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