Business Daily from THE HINDU group of publications
Tuesday, Jul 24, 2007
ePaper
Business Daily from THE HINDU group of publications Tuesday, Jul 24, 2007 ePaper |
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Corporate Results
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Pharmaceuticals
Our Bureau Hyderabad, July 23 Dr Reddy’s Laboratories’ net income increased 31 per cent to $45 million (Rs 183 crore) in the first quarter of the fiscal year 2007-08 ended June 30 compared with $34 million (Rs 140 crore) in the corresponding quarter of the last fiscal. The total revenues, however, decreased 14 per cent to $296 million from $346 million in the comparable period last year. The earning per share (EPS) increased to 0.27 (0.22). “The revenue margins from authorised generics, strong contribution to sales and profit from the core business Active Pharmaceutical Ingredients(APIs) and branded finished dosages improved the bottom line,” Mr K. Satish Reddy, Managing Director, Dr Reddy’s Laboratories, told newspersons here on Monday. Within a month, Dr Reddy’s would be foraying into the Over the Counter (OTC) segment on its own, he added. “After hitting an all-time high of over $1.5 billion revenue during the last fiscal, our performance in the first quarter is good. All businesses did well except the custom pharmaceuticals service (CPS),” he said. The company’s revenues in the CPS dipped to $25 million from $35 million in the financial year 2007. “This was due to decline in revenues from Mexico where we faced supply shortages of key raw materials,” said Mr G.V. Prasad, Chief Executive Officer. However, the issue had been addressed as the firm’s own plant began operations in Mexico, he added. On the improvement in gross margins by 51 per cent (43 per cent) and increase in net income in the face of a strengthening rupee, he said: “The rupee appreciation was not an issue for us due to proper hedging and better utilisation of ADRs. However, our capacity to hedge is limited and it will impact margins in the remaining quarters. The company had hedged over $450 million to steer clear of rupee impact during the quarter. It did offset some loss.” On the business outlook and future plans, Mr Prasad said the manufacturing of top 10 products of the company was being shifted to India due to lack of supply in the European Union generics market. “We are already on the job. We also want to replace our global contract suppliers with those in India,” he said. To strengthen the CPS vertical, the company is scouting for acquisitions, he said while declining to elaborate further. On the R&D front, the firm had lined up 10 new products for launch. “The Phase III clinical trials for Balaglitazone have commenced in Europe,” Mr Prasad said. The R&D spend had gone up to 7 per cent total revenues from 4 per cent in the first quarter of the last fiscal.
Related Stories: More Stories on : Pharmaceuticals | Dr. Reddy's Laboratories Ltd
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