Dr Reddy's Laboratories (DRL), the second largest pharmaceutical company in India, has reported 16.8 per cent growth in adjusted consolidated net profit during the year ended March 2011. Its adjusted net profit worked out to Rs.1,076 crore as against Rs.921 crore in the previous year. The consolidated net sales moved up only by 6.3 per cent to Rs.7,469 crore from Rs.7,028 crore. The company management declared equity dividend of 225 per cent (Rs.11.25 per share of Rs.5 each) for the year 2010-11.
DRL's pharmaceutical services and active ingredients revenue declined by 4 per cent to Rs.1,965 crore from Rs.2,040 crore as its pharmaceutical services revenue declined on account of lower customer orders. The revenues from global generics segment improved by 10 per cent to Rs.5,334 crore, led by performance in North America and Emerging markets from Rs.4,861 crore. Its revenues in North America increased by 13.1 per cent to Rs.1,900 crore from Rs.1,682 crore with the launch of 11 new products during 2010-11. It launched tacrolimus, lansoprazole and fexofenadine pseudoephedrine 180/240mg.
DRL's revenues in Russia increased by 24 per cent to Rs.890 crore from Rs.720 crore mainly on account of volume growth across existing business and new products contribution. OTC products represent 25 per cent of overall portfolio. Revenues in other CIS markets increased marginally by 2 per cent to Rs.190 crore.
The company's revenues in domestic market increased by 15 per cent to Rs.1,170 crore from Rs.1,020 crore in the previous year with volume growth of 11 per cent and contribution from new product launches of 4 per cent. DRL launched 48 new product in Indian market which includes one biosimilar, darbepoetin alfa under the brand Cresp.
DRL's revenues from Europe declined by 13 per cent to Rs.843 crore from Rs.964 crore in the previous year mainly on account of lower sales in Germany by 25 per cent to Rs.550 crore. Further, decline of 17 per cent in Euro currency terms largely due to the tender based pricing pressures also put pressure on revenues. Revenues from the res of Europe grew by 27 per cent to Rs.300 crore on account of out-licensing business.
Its R&D expenditure increased by 33 per cent to Rs.506 crore from Rs.379 crore in the previous year. DRL filed 20 ANDAs and its cumulative filings reached at 170. A total of 75 ANDAs are pending for approval. The company also filed 56 DMFs which includes 19 in US, 7 in Europe and 30 in rest of the markets. The cumulative DMF filings as of March 2011 reached at 486.
The company has shown adjustment in respect of profit from sale of land o Rs.29.2 crore and benefit of negative goodwill of Rs.7.30 crore as per IFRS purchase price allocation accounting on account of acquisition during 2010-11. During 2009-10 it included non-cash impairment charge of Rs.860 crore and betapharm restructuring costs of Rs.90.5 crore as adjustment. After these adjustments, its net profit for the year 2010-11 stood at Rs.1,104 crore as against Rs.106.76 crore in the previous year. With this profit its earnings per share worked out to Rs.65.28 as compared to Rs.6.33 in last year.