Dr Reddy's net income rises to rs 2,798 mn
Hyderabad, Oct 27: Aided largely by acqusitions in Germany and Mexico, the city-based Dr Reddy's Laboratories Ltd(NYSE: RDY) has recorded a revenue of Rs 20,039 million and a net income of Rs 2,798 million during the second quarter-Q2, of this fiscal.
Announcing the unaudited financial results at a press conference here, Managing Director Satish Reddy said revenues from international markets increased by 391 per cent at Rs 17.6 billion, contributing to 88 per cent of the total revenue as compared to 62 per cent in Q2 in last fiscal.
''Acquisitions in Mexico and Germany contributed 20 per cent to total revenue in Q2 this fiscal'', he said, adding while revenues in Germany stood at Rs 2,554 million in the quarter compared to Rs 1,998 million in Q1 this fiscal, revenues from acqusition in Mexico were Rs 1,434 million in Q2, compared to Rs 1,241 million in Q1.
Revenues from core business(excluding contributions from authorized generics and acquistions), increased by 42 per cent to Rs 8.2 billion from Rs 5.8 billion, he said.
While gross profits increased to Rs 8.3 billion in Q2 from Rs 3.0 billion in Qs last year, Gross profit margins on total revenues was 41 per cent as against 52 per cent in the corresponding period last year, he said.
Primarily on account of consolidation of two acqusitions, selling, general and adminstration expeneses increased by 108 per cent to Rs 3.7 billion, he said.
Mr Reddy said the revenues in North America Generics finished dosage business increased to Rs 9,082 million in Q2 FY 07 compared to Rs 299 million in Q2 FY 06, The growth was primarily driven by combined revenues of rs 7,808 million from Simvastatin and finasteride. Both the products were launched as authroised generic versions of Merck's Zocor and Proscar in June 2006 and contrinuted to 39 per cent to total revenue in this quarter.
During the quarter, the company filed 8 ANDAs, including three non-para IVs, taking the total ANDAs pending at the USFDA to 56.
In the branded formualations, revenues were at rs 1.3 billion in the quarter, primarily driven by performance in Russia, Uzbekistan, Romania and Venezuela of key brands of Nise, Cetrine and Ketorol, he said.
Revenues in Central and Eastern Europe grew by 96 per cent to Rs 100 million in the quarter as against Rs 51 million in the corresponding period last year, he said.
Four new products including two OTC products were launched during the quarter, he added.