Dr Reddy's net up 72% to Rs 89 crore

Dr Reddy's Laboratories reported a net profit of Rs 89 crore for the quarter ended September 30, 2005, 72 per cent higher than the Rs 51.7 crore recorded in the corresponding quarter of the previous year.

Total revenues increased by 7 per cent at Rs 580.3 crore as compared with Rs 540.7 crore registered in the previous corresponding quarter. This translates to a diluted EPS of Rs 11.61 as compared with Rs 6.75 in Q2 FY05.

The company said that the overall revenue growth has been driven by increase in revenues from all businesses, excluding North America generics.

While the revenues from active pharmaceutical ingredients (APIs) business increased by 17 per cent at Rs 213 crore, revenues from branded formulations business increased by 11 per cent at Rs 2,57.6 crore.

Revenues from Europe generics finished dosage segment increased by 46 per cent at Rs 47.3 crore led by higher price realisations for key products.

The pricing pressure in the US generics market, however, continued in the second quarter due to which there was an overall decline in revenues from North America generics segment at Rs 29.9 crore in Q2 FY06 from Rs 71.5 crore in Q2 FY05. R&D investments for Q2 FY06 decreased by 29 per cent to Rs 44.4 crore from Rs 62.7 crore.

During the quarter, the company recognised Rs 15.5 crore as income under the R&D partnership deal with ICICI Venture.Dr Reddy's Laboratories Ltd recently announced that Viboliv (metadoxine) has been launched nationally in 500 mg and 300 mg injectable dosages.