"This is a do-able target, and I expect it to be achieved because of changes that have been brought about across your company over the last few years - changes that are now primed to deliver superior financial results," DRL chairman, K Anji Reddy, stated in a letter to the company's shareholders.
In 2007-08, DRL's consolidated revenue and net profit declined to Rs 5,000 crore and Rs 468 crore respectively from Rs 6,509 crore and Rs 932 crore posted in the previous year.
However, according to Reddy, DRL will witness some significant upsides in the current year. In the third quarter of the current fiscal, the company will exclusively distribute 25 mg, 50 mg and 100 mg strengths of Sumatripan succinate, an authorised generic of Glaxo Smithkline's Imitrex tablets, in the US. Sumatripan is used for the treatment of acute migraine and enjoys widespread market acceptability.
Besides, Reddy said, by migrating production of increasing number of formulations to an Indian facility, Germany-based Betapharm would be able to generate higher profits this year.
Similarly, he said, the problems of securing raw material from other suppliers for the custom pharmaceutical services (CPS) facility in Mexico had been addressed with the company setting up its dedicated raw material plant at Miryalaguda, about 150 km from here. The company's revenue in this segment declined to Rs 481.8 crore in 2007-08 from Rs 660 crore in 2006-07.
Explaining the company's growth prospects in 2008-09 and thereafter, Reddy pointed out that in April 2008, DRL had completed three acquisitions -- DowPharma's small molecules business in the UK, Jet Generici Srl in Italy and BASF's pharmaceutical manufacturing business and facility in the US.
Besides, the company had invested Rs 629.3 crore in manufacturing, R&D facilities and other capital expenditure in 2007-08. "This is the highest level of investment in a single financial year up to date. They will create the capacity to support Dr Reddy's strategic growth agenda. I am, therefore, confident of your company's growth prospects," he added.
