Companies

Higher sales lift Dr Reddy’s Lab second quarter profit up 32%

Our Bureau Hyderabad | Updated on October 31, 2012 Published on October 30, 2012

Umang Vora, Executive Vice-President & Chief Financial Officer, Dr Reddy’s Laboratories, at a press conference in Hyderabad on Tuesday. — P.V. Sivakumar   -  Business Line

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Drug maker Dr Reddy’s Laboratories posted a 32 per cent increase in its net profit for the second quarter ended September 30 on higher sales.

Its net profit increased to Rs 407.40 crore from Rs 307.80 crore in the year-ago period.

The company’s revenues during the quarter rose 27 per cent at Rs 2880.90 crore, as against Rs 2267.80 crore in the corresponding quarter of last fiscal. As its operating model is leveraged, a significant extent of the nearly Rs 600 crore incremental revenue came as profit.

Its adjusted net profit for the period was Rs 493.70 crore, including the benefit of reversal of provision for voluntary retirement scheme in the second quarter of 2011-12.

Revenues from global generics segment for the quarter touched Rs 2,010 crore, reflecting a growth of 25 per cent. This was driven by key markets of North America and other emerging markets.

Abhijit Mukherjee, President - Global Generics, said revenues from North America for the quarter grew 47 per cent, while those from Russia and other CIS countries was lower at 14 per cent due to delay in onset of winter season.

Revenues from Europe declined 16 per cent. The company is in the process of “re-defining” its European business because of some price erosion, which could include closing down of its Italian business, Mukherjee told news persons here today.

Umang Vohra, Executive Vice-President & Chief Financial Officer, said revenues from India were back on track, recording a growth of 12 per cent at Rs 390 crore. This was mostly driven by the growth of its Biosimilars (24 per cent) and launching of four new brands during the quarter.



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Published on October 30, 2012
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