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Dr Reddy's Labs' net zooms by 70% to Rs. 618 crore inQ3
Our Bureau, Mumbai | Tuesday, February 11, 2014, 17:30 Hrs  [IST]

Dr Reddy's Laboratories (DRL) has posted strong financial performance during the third quarter ended December 2013 mainly due to significant growth in revenues from North America. Its consolidated net profit moved up by 70.2 per cent to Rs. 618 crore from Rs. 363 crore in the corresponding period of last year. Its operating profit jumped by 91 per cent to Rs. 864 crore from Rs. 453 crore. With strong growth in bottom line, its EPS touched to Rs. 36.36 as against Rs. 21.39 in the last period.

DRL's sales of global generic increased by 41.1 per cent to Rs. 2,940 crore from Rs. 2,083 crore in the similar quarter of last year. However, its sales of pharmaceutical services and active ingredients declined by 24.4 per cent to Rs. 654 crore from Rs. 865 crore. The sales of proprietary products moved up by 19 per cent to Rs. 48 crore from Rs. 40 crore.

DRL scrip closed lower today by Rs. 17.85 today at Rs. 2658.95 on BSE after touching to its yearly highest level at Rs. 2,700 in the afternoon.

Its generic revenue from North America increased by 76 per cent to Rs. 1,620 crore due to stabilization for recent key launches in limited competition space, namely azacitidine, decitabine, divalproex ER, donepezil 23 mg, zoledronic acid, etc. It filed two ANDAs during the quarter under review. Cumulatively, 62 ANDAs are pending for approval with the US FDA of which 38 are Para IV. Its sales from emerging market including Russia, CIS countries and Rest of the World improved by 25 per cent to Rs. 740 crore. Its sales in Russia increased by 17 per cent to Rs. 430 crore. The company's domestic sales increased only by five per cent to Rs. 390 crore on account of revised prices under new pharma pricing policy. Its revenue from Europe remained almost flat at Rs. 190 crore.

DRL's sales of pharmaceutical services and active ingredients (PSAI) declined basically due to de-growth on the back of lower number of 'launch molecules' to its customers during the quarter. It filed 19 DMFs globally, including six filings in Europe. The cumulative number of DMF filings reached at 612. Its R&D expenditure increased 46.8 per cent to Rs. 297.91 crore from Rs. 202.54 crore. This worked out to 8.4 per cent of revenue as compared to 7.1 per cent in the last period.

For the nine months ended December 2013, DRL's net sales increased by 17.5 per cent to Rs. 9,736 crore from Rs. 8,287 crore in the similar period of last year. Its net profit went up by 51 per cent to Rs. 1,670 crore from Rs. 1,107 crore. Its operating profit went up by 47.5 per cent to Rs. 2,018 crore from Rs. 1,368 crore. Its R&D expenditure reached at Rs. 842 crore from Rs. 535 crore. EPS improved to Rs. 98.21 as against Rs. 65.19 in the last period.

The sales of global generics increased by 29.8 per cent to Rs. 7,785 crore from Rs. 6,000 crore and that of proprietary products increased by 12.9 per cent to Rs. 122 crore from Rs. 108 crore. However, its PSAI sales declined by 13.9 per cent to Rs. 2,126 crore from Rs. 2,470 crore.

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