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Our Bureau

Hyderabad , Jan. 31

DR Reddy's Laboratories Ltd has suffered a steep fall of 93 per cent in net profit for the third quarter of current fiscal ended December 2004.

The company suffered a fall of eight per cent in turnover, 36 per cent in operating profit before research and development (R&D) and forex, and incurred an operating loss for the quarter under review.

Though the company could maintain the gross profit margin at 52 per cent, it suffered a fall in operating profit margin (before R&D and forex) at 14 per cent from 20 per cent in the corresponding quarter of previous fiscal and incurred an operating profit loss. The net profit margin has dipped to a record low of one per cent from 12 per cent in the corresponding quarter.

According to the unaudited US Generally Accepted Accounting Principles (GAAP) financial results approved by the board here on Monday, the company has achieved a turnover of Rs 470.5 crore as against Rs 513.8 crore in the corresponding quarter of previous fiscal and an operating profit before R&D and forex of Rs 65.7 crore (Rs 102.9 crore). The company suffered an operating loss of Rs 9.7 crore as against an operating profit of Rs 57.5 crore in the corresponding quarter and posted a net profit of Rs 4 crore (Rs 59.2 crore), yielding earnings per share (EPS) of Rs 0.52 (Rs 7.72).

During the quarter under review, the company recorded a growth of 11 per cent in selling, general and administrative expenses at Rs 171.5 crore (Rs 154.8 crore) and 37 per cent growth in R&D expenses at Rs 70.5 crore (Rs 51.6 crore).

As per the unaudited financial results for the nine-month period announced by the company, the turnover has dropped to Rs 1,253.05 crore from Rs 1,331.5 crore in the corresponding period of previous fiscal, while the net profit has dipped to a low of Rs 74.21 crore from Rs 272.43 crore, yielding an EPS of Rs 9.70 (Rs 35.60).

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