Dr Reddy's Laboratories (DRL) has posted consolidated net profit growth of 31.9 per cent during the second quarter ended September 2010 to Rs.286.7 crore as against Rs.217.3 crore in the corresponding period of last year on account of lower taxation. Its net sales increased only by 1.8 per cent to Rs.1,870 crore from Rs.1,837 crore due to lower sales in North America and Europe. Its sales in North America declined by 2 per cent to Rs.546.4 crore and that in Europe moved down by 14 per cent to Rs.410.2 crore from Rs.474.3 crore in the similar quarter of last year.
DRL launched 41 new generic products and filed 21 new product registrations as well as 13 DMFs globally. As at the end of September 2010, total cumulative ANDA filings reached at 167 and its total ANDAs pending approval at US FDA stood at 74 of which 39 are para IVs and 12 are FTFs.

Its Global generics sales growth worked out 8 per cent to Rs.1,367 crore from Rs.1,271 crore, however, its pharmaceutical sales declined by 14.1 per cent to Rs.461.7 crore from Rs.537.5 crore. Its revenues from Germany declined by 26 per cent to Rs.160 crore largely due to price erosions caused by the impact of tenders. The generic sales in Europe declined by 17 per cent to Rs.236.6 crore from Rs.284.8 crore in the corresponding quarter of last year and its pharmaceutical sales in Europe drop by 12 per cent to Rs.155.1 crore from Rs.176.1 crore.

The generic sales in North America moved up by 3 per cent to Rs.441.6 crore from Rs.428.5 crore, but its pharmaceutical sales in North America declined sharply by 29 per cent to Rs.81.4 crore from Rs.115 crore. Its generics sales in India improved by 20 per cent to Rs.316 crore from Rs.252.1 crore and that in Russia and other CIS also increased by 19 per cent to Rs 275.1 crore from Rs 235.1 crore. DRL launched 13 new products in India during the quarter under review.

The company's R&D expenditure went up by 32 per cent to Rs.126.9 crore from Rs.96.3 crore in the last period. The company interest expenditure stood at Rs.3.49 crore as against interest income of Rs.20.85 crore. Its tax provision was at Rs.32.70 crore as against Rs.59.5 crore in the same quarter of last year..

For the first half ended September 2010, DRL net sales declined by 2.8 per cent to Rs.3554 crore from Rs.3656 crore in the corresponding period of last year. The net profit moved up by 7.5 per cent to Rs.496.37 crore from Rs.461.81 crore. The earnings per share for the first half of 2011 worked out to Rs.29.36 as compared to Rs.27.40 in the last period. Its sales from pharmaceutical services and active ingredients sales declined by 8 per cent to Rs.1,061 crore and its global generics sales moved down by 0.6 per cent to Rs.2,558 from Rs.2,573 crore. R&D expenditure increased by 16.1 per cent to Rs.226.27 crore from Rs 194.84 crore.