The Hindu Business Line : Dr Reddy's posts $75 m net income in Q4

STRONG SHOWING: (From left) Mr Satish Reddy, Managing Director, Dr Reddy's Labs; Mr K. Anji Reddy, Founder Chairman; and Mr G.V. Prasad, Vice-Chairman; at a press conference in Hyderabad on Friday. — K. Gajendran

Hyderabad May 18 Dr Reddy's Laboratories Ltd has posted $75 million net income in the fourth quarter of fiscal year 2006-07 compared to $5 million loss in the corresponding quarter of the previous fiscal.

The total revenues for the quarter grew 125 per cent to $361 million as against $161 million for the comparative quarter of fiscal 2005-06.

Announcing the unaudited results for the year ended March 31, Mr K. Satish Reddy, Managing Director and Chief Operating Officer of Dr Reddy's, said the net income for the year grew over four times to $216 million compared to $38 million in 2005-06. The operating cash flow was at $274 million.

The revenue from Active Pharmaceutical Ingredients (APIs) grew 44 per cent to $274 million ($191 in FY 06) while branded formulations' revenue had gone up 24 per cent to $286 million from $230 million.

New markets

Mr G.V. Prasad, Chief Executive Officer, said the company would continue to focus on new markets. "We have identified the US, India, Russia and Germany as tier I markets. We will focus more on tier-II markets such CIS, South Africa, Brazil, Mexico, Canada, Spain and Italy," he said.

"The geographical footprint of the company is also expanding. In Russia, we moved to 15th position from 24th position last year with Rs 349 crore revenue (Rs 256 crore in 2005-06)," he said.

On R&D front, the budget would be increased from 5 per cent of revenues in 2005-06 to 7 per cent from this year. "We will be expanding growth into oncology, bio-generics and other dosage forms," Mr Prasad said.

During the year the company had a total of 33 filings taking the cumulative ANDAs (Abbreviated New Drug Application) and DMFs (Drug Master Files) to 104. A total of 69 ANDAs are pending with the USFDA.

Dr Reddy's has recommended a final dividend of 75 per cent of face value of Rs 5 each on the enhanced share capital due to bonus issue in August 2006. The company's board, which met here on Friday has also okayed the appointment of Dr J.P. Moreau as Additional Director on the board of the company.

Dr Reddy's compensation committee has granted 4,66,460 stock options, including 87,500 ADR linked stock options to the employees of the company. The shares covered by such options are 4,66,460.

The options have been granted at a price of Rs 5 per option.

The options may be exercised in a phased manner after the vesting period of 12 months but before completion of five years from the date of vesting.

The share price of the company was down 1.79 per cent on the BSE at Rs 665.75 on Friday.

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