Announces 1:1 bonus, 100 pc dividend

Our Bureau

Hyderabad, May 31

Dr Reddy's Laboratories Ltd for the fourth quarter ended March 2006, suffered a net loss of Rs 23.6 crore despite a growth of 64 per cent in revenues at Rs 697.4 crore (Rs 425.2 crore).

The company has decided to reward the shareholders with a bonus issue in the ratio of one equity share for every equity share held.

The board, which met here on Wednesday to take on record the audited financial results for the fiscal ended March 2006, has also recommended a dividend of 100 per cent on equity shares of Rs 5 each.

Surpasses $500-m mark

Dr Reddy's Laboratories has surpassed the $500-million milestone in revenues for the fiscal ended March 2006 with revenues of $546 million, a growth of 25 per cent over the previous fiscal, and a six-fold growth in net profit at $37 million. In rupee terms, the company posted revenues of Rs 2,426.7 crore against Rs 1,947.2 crore in the previous fiscal and a net profit of Rs 162.9 crore (Rs 21.1 crore), yielding an EPS of Rs 21.24 (Rs 2.76).

According to Mr G.V. Prasad, CEO, the fiscal under review was a satisfying one for the company as it improved short-term profitability.

Dr Reddy's COO, Mr K. Satish Reddy, attributed the subdued performance in Q4 and significantly lower gross margin at 42 per cent against 52 per cent in the first nine months of fiscal 2006 to lower proportion of revenues from branded formulations segment to total revenues, lower margins in the UK and lower gross margins from Mexico acquisition.

Mr Prasad said "The most satisfying part of our performance in 2005-06 has been the contribution from all key geographies and businesses, including the contribution from acquisitions. We believe that with all the initiatives that we have undertaken in the last few years, we have built a strong foundation."

Related Stories:
Dr Reddy's Q3 sales, net up on API, branded dosage biz growth
Dr Reddy's posts Rs 51.9-cr net loss in fourth quarter

(This article was published in the Business Line print edition dated June 1, 2006)
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