Dr Reddy's Q3 profits declines to Rs 85 crore

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Hyderabad, Jan 25 (UNI) Dr Reddy's Laborataries Managing Director Satish Reddy, today said the total Profit After Tax (PAT) was Rs 85 crore as against Rs 188 crore in Quarter-three, 2007.

Talking to newspersons here, Mr Reddy said due to the impact of price reforms, increasing rebates to Insurance companies in Germany from April, 2007 and change in the composition of top products, the company had taken an additonal amortization of certain products related intangible of betapharm of Rs 2,361 million.

"This has resulted in decline of PAT in the present quarter.

Without the additional amortization, the company's PAT would have been Rs 1,034 million", he added.

The company's total revenue was at Rs 12.3 billion as against Rs 15.4 billion in Q3, 2007. On a like-to-like comparison, revenues increased by eight per cent in rupees, Mr Reddy said adding that there was strong contribution to sales and profits from the core business despite the rupee appreciation.

The key highlights of the company in Q3 was the growth in sales was 16 per cent in India, 25 per cent growth in Russia and 69 per cent in North America.

Stating that the sales momentum would continue in India in Quarter-four 2007, Mr Reddy said 'we expect overall growth in revenue and profits in 2009. Core business in APIs, branded generics business in India and Russia would be the key growth drives, he added.

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