Dr Reddy's Laboratories (DRL), a second largest pharma giant from India, has posted all round performance during the year ended March 2012 on account of higher sales in North America and Russia. The company's consolidated net profit increased by 29.2 per cent to Rs.1,426 crore from Rs.1,104 crore in the previous year. EBDITA also improved by 46 per cent to Rs.2,450 crore from Rs.1,678 crore. The earnings per share went up smartly to Rs.84.16 from Rs.65.28 in the last year. The board of director has recommended handsome equity dividend of 275 per cent (Rs.13.75 per share of face value of Rs.5 each).
The consolidated net sales increased by 29.5 per cent to Rs.9,674 crore from Rs.7,469 crore. Revenues from global generics segment improved by 32 per cent to Rs.7,020 crore driven by key markets of North America and Russia. Its generic revenue from North America went up by 62 per cent to Rs.3,190 crore on account of new product launches of ziprasidone, fondaparinux, amoxicillin clavulanic acid, products from Shreveport facility and market share expansion in existing products of lansoprazole and omeprazole Mg OTC. DRL launched 16 new products in North America and it filed 17 ANDAs. Cumulatively 80 ANDAs are pending for approval with US FDA.
DRL's generic revenues in Russia and other CIS markets improved by 22 per cent to Rs.1,330 crore due to volume growth across key brands and OTC portfolio. Its revenues in Russia moved up by 15 per cent to Rs.1,100 crore. Its revenue in other CIS markets grew by 17 per cent to Rs.220 crore. The company's generic revenue in Europe declined by 2 per cent to Rs.830 crore as its revenues in Germany declined by 15 per cent to Rs.510 crore due to tender process in German market..DRL's domestic sales increased by 11 per cent to Rs.1,290 crore on account of higher volume of key brands and oncology portfolio. Biosimilars portfolio grew by 33 per cent. DRL launched 23 new products in domestic market..
The sales of pharmaceutical Services and Active Ingredients (PSAI) increased by 21 per cent to Rs.2,380 crore mainly due to higher sales to generic customers to support their generic product launches in line with patent expiration in the near term. The company filed 68 DMFs globally, with 14 each in the US and Europe. The cumulative DMF filings reached at 543 as at the end of March 2012.
DRL's R&D expenditure increased by 16.8 per cent to Rs.591 crore from Rs.506 crore in the previous year. Its net forex gain amounted to Rs.68.90 crore as against forex loss of Rs.5.70 crore. The interest burden increased to Rs.69 crore as compared to Rs.19.90 crore mainly due to the interest on bonus debentures of Rs.47 crore. Profit on sales of investment reached at Rs.16.1 crore from Rs.6.80 crore. Thus, the net finance income worked out to Rs.16 crore as compared to finance expense of Rs.18.80 crore. This impacted its bottom line positively.
DRL's standalone net sales improved by 26.6 per cent to Rs.6,604 crore during the year ended March 2012 from Rs.5,218 crore in the previous year. Its income from license fees and service increased sharply to Rs.63.99 crore from Rs.31.03 crore and other operating income to Rs.71.93 crore from Rs.55.34 crore. Its standalone net profit improved marginally by 2.1 per cent to Rs.912 crore from Rs.893 crore.