Pharmabiz
 

Dr Reddy's suffer net loss of Rs 522 cr in Q3

Our Bureau, MumbaiWednesday, January 20, 2010, 08:00 Hrs  [IST]

Dr Reddy's Laboratories (DRL), the second largest pharma company in India with consolidated net sales of Rs 6790 crore, has incurred heavy net loss of Rs 521.7 crore during the third quarter ended December 2009 mainly on account of write down of goodwill amount of Rs 514.7 crore on consolidated basis (IFRS accounting standards). The decline in prices in Germany and significant fall in revenues in North America impacted the overall working adversely. The company achieved net profit of Rs 244.5 crore in the same period of last year. With net loss, its earnings per share worked out to negative Rs 30.9 as compared to Rs 14.5 in the last period. Its net sales also declined by 6 per cent to Rs 1,730 crore during the quarter under review from Rs 1,840 crore in the similar period of last year.. The total generic sales declined to Rs 1,170 crore from Rs 1,370 crore in the corresponding period of last year and its sales of Pharmaceutical Services and Active Ingredients (PSAI) improved by 18.8 per cent to Rs 520 crore from Rs 440 crore mainly due to higher sales in India and Russia. Gross profit before selling, general & administrative expenses, R&D expenses and write down declined by 14 per cent to Rs 880.9 crore from Rs 1,027 crore. Its R&D expenditure declined by 13 per cent to Rs 89.2 crore from Rs 102.7 crore in the similar period of last year. The company has cut down its net interest burden to Rs 5 crore from Rs 69.9 crore. DRL launched 27 new generic product during the quarter. It filled 16 new product registrations and filed 11 DMFs globally. The cumulative of ANDAs filing reached at 141 and its 62 ANDAs are awaiting approval at the USFDA. Its sales in North America declined sharply by 48.3 per cent to Rs 393.3 crore from Rs 760.90 crore and that in Europe improved by 9 per cent to Rs 482.7 crore from Rs 440.9 crore. Its revenues in India improved by 33 per cent to Rs 324.1 crore from Rs 243.3 crore. Similarly, revenues in Russia and other CIS countries went up by 38 per cent to Rs 276.9 crore from Rs 200.6 crore in the corresponding period of last year. Thus, the overall international revenues declined to Rs 1405.50 crore from Rs 1596.80 crore. For the first three quarters of 2009-10, DRL's revenues increased by 8.6 per cent to Rs 5,385 crore from Rs 4,959 crore in the corresponding period of last year. Its aggregate net loss for the three quarters amounted to Rs 59.90 crore as against a net profit of Rs 460 crore. Its revenues in North America for the nine months period ended December 2009 reached at Rs 1,670 crore from Rs 1,587 crore, a growth of 5.2 per cent. Its European revenues remained almost flat at Rs 1319 crore. However, its revenues in India and Russia moved up by 14.1 per cent and 20.7 per cent to Rs 941 crore and Rs 699 crore respectively.

 
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