Dr Reddy's Labs net profit reduces in second quarter

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Hyderabad, Oct 24 (UNI) With its acquisition Betapharm of Germany yet to start performing and rupee appreciating, Pharma major Dr Reddy's Labs posted a lesser net profit of Rs 267.2 crore for the quarter ended September 2007 as against Rs 279.8 crore in same quarter last year.

Talking to newspersons here, the company Managing Director Satish Reddy and Vice-Chairman G V Prasad said revenues in Q2 was at 12.7 billion as against Rs 20 billion in Q2 Fy-08, representing a reduction of 37 per cent.

''Betapharm has impacted our profits. It will start performing in another year'', Mr Prasad said.

Noting that weakening of US dollar was affecting the company, Mr Prasad said ''US dollar is sure to weaken in the long-term.

We are concentrating on cost-cutting and newer markets.''.

New Research and Development centres would be set up shortly in Mexico, Turkey, Australia, New Zealand and Japan, among others, Mr Prasad said, adding ''we plan to enter Japan through partnership''.

On the capital expansion plans, they said two Special Economic Zones(SEZ) would be set up in Hyderabad and Visakhapatnam soon at an estimated cost of Rs 25 million each. As much as 250 acres of land for each of the SEZs were being acquired, they added.

The Consolidated net profit included Betapharm tax reversal of Rs 150 crore, they said.

The stock fell 0.78 per cent to 629.95 on the Bombay stock exchange and fell 0.94 per cent to 630.05 on the National Stock exchange.

UNI

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