Dr Reddy's Laboratories (DRL) consolidated net profit went up by 7.3 per cent to Rs.307.80 crore during the second quarter ended September 2011 from Rs.286.82 crore in the similar period of last year. Its consolidated net income increased by 21.3 per cent to Rs.2,268 crore from Rs.1,870 crore as its sales from global generics increased by 18.1 per cent to Rs.1,614 crore from Rs.1,367 crore and that from pharmaceutical services and active ingredients moved up by 34.4 per cent to Rs.718 crore from Rs.534 crore in the corresponding period of last year. With better performance, DRL scrip moved up by Rs.35 and closed at Rs.1,579 on BSE today.
DRL launched 28 new generic products and filed 17 new product registration and 11 DMFs globally. It received final approval of its olanzapine 20 mg tablets,the generic version of Eli Lilly's Zyprexa from the US FDA. As at the end of September the cumulative ANDA filings reached at 177 and a total of 76 ANDAs are pending for approval with the US FDA. Its research and development (R&D) expenditure for the quarter touched to Rs.145.94 crore as compared to Rs.126.98 crore, a growth of 14.9 per cent. Its selling, general and administrative expenses increased by 26.4 per cent to Rs.721.58 crore from Rs.570.87 crore.
Its revenues from North America improved by 43.2 per cent to Rs.630 crore from Rs.440 crore in second quarter ended September 2011. The growth is led by new product launches in the last twelve months and market share improvement in key products. It launched five new products in US, including limited competition products such as fondaparinux and fexofenadine pseudoephedrine D24 OTC.
DRL's revenues in Russia improved by 26.1 per cent to Rs.290 crore from Rs.230 crore, largely driven by volume growth in key brands. OTC portfolio generated growth of 33 per cent and these sales contributed 20 per cent of overall Russia sales. However, sales in CIS region remained flat at Rs.47.70 crore in the second quarter ended September 2011. The company's sales in Europe, however, declined by 10 per cent to Rs.210 crore basically due to lower sales in Germany of Rs.120 crore on account of tenders system. The sales from Rest of Europe grew by 26 per cent to Rs.93.30 crore basically due to new launches in UK and growth in out-licensing business.
The company's sales in India moved up by 9 per cent to Rs.350 crore from Rs.320 crore in the same period of last year. It launched three new products and its biosimilar portfolio growth registered 22 per cent growth.
For the first half ended September 2011, DRL's consolidated net sales increased to Rs.4,246 crore from Rs.3,554 crore, a growth of 19.5 per cent. Its net profit surged by 14.9 per cent to Rs.570.54 crore from Rs.496.37 crore. Its sales of pharmaceutical services and APIs improved by 21.9 per cent to Rs.1294 crore and that of global generics increased by 19.5 per cent to Rs.3,055.97 crore. Its Proprietary products sales jumped by 81.7 per cent to Rs.46.06 crore from Rs.25.35 crore in the corresponding half of last year.
Though the consolidated net profit improved during the second quarter, its standalone net profit for the quarter declined by 37.1 per cent to Rs.138.50 crore from Rs.220.20 crore. Its standalone EBDITA also declined by 17.3 per cent to Rs.269.85 crore from Rs.326.25 crore. Its standalone net sales improved by 26.2 per cent to Rs.1,613 core from Rs.1,278 crore in the similar period of last year. For the first six months, its standalone net profit increased by 27.5 per cent to Rs.592.55 crore and its sales moved up by 29.7 per cent to Rs.3,288 crore.