Dr Reddy's Laboratories (DRL), a second largest Indian pharma giant, has posted lower consolidated net profit during the third quarter ended December 2012 and its net profit declined by 29.2 per cent to Rs.363 crore from Rs.512.96 crore in the corresponding period of last year mainly due to marginal growth in revenues on account of lower generic sales in US and Europe. Its consolidated net sales increased only by 3.5 per cent to Rs.2,865 crore from Rs.2,769 crore. The earnings per share declined to Rs.21.39 from Rs.30.26.
With overall working under pressure, DRL scrip declined sharply by Rs.31.60 to Rs.1874 on BSE, in the afternoon session as against previous day's close of Rs.1905.60, after the announcement of working results.
The sales of global generics declined by 2.2 per cent to Rs.2,083 crore from Rs.2,129 crore in the similar quarter of last year. Its generic sales in US declined by 16.8 per cent to Rs.924 crore from Rs.1,111 crore in the same quarter of last year. Its sales in Europe declined sharply by 20.4 per cent to Rs.193.1 crore from Rs.242.6 crore. However, its sales in Russia and other CIS countries improved by 32.1 per cent to Rs.438 crore from Rs.331.7 crore and that in domestic market moved up by 11.6 per cent to Rs.371.8 crore from Rs.333.3 crore in the last period.
DRL's sales from Pharmaceutical Services and Active Ingredients (PSAI) improved by 28.1 per cent to Rs.712.7 crore from Rs.556.3 crore as the division's sales in Europe improved by 49.6 per cent to Rs.247.2 crore from Rs.165.2 crore. Its domestic sales moved up by 47.1 per cent to Rs.126.8 crore from Rs.862 crore. The sales of PSAI in North America improved by 8.2 per cent to Rs.126.6 crore from Rs.117 crore. The sales of proprietary products declined by 17 per cent to Rs.69.6 crore from Rs.84.1 crore.
Its R&D expenditure increased by 33.8 per cent to Rs.202.54 crore from Rs.151.40 crore in the same quarter of last year. R&D expenditure worked out to 7.1 per cent of sales. Its selling, general and administrative expenses increased by 11.6 per cent to Rs.857.08 crore from Rs.767.84 crore.
It filed 4 ANDAs and 65 ANDAs are pending for approvals with the US FDA. The company filed 13 DMFs globally, including 3 in US and 1 in Europe. The cumulative number of DMF filings reached at 566.
For the nine months ended December 2012, DRL' consolidated net sales increased by 18.1 per cent to Rs.8,287 crore from Rs.7,015 crore in the similar period of last year. However, its net profit improved only by 2.1 per cent to Rs.1,107 crore from Rs.1,084 crore. EPS for nine months worked out to Rs.65.19 as against Rs.63.95 in the last period.