Dr Reddy's posts Rs 325 cr profit

Riding high on expanded geographical footprint and an improved market ranking in key markets and therapeutic segments, Dr Reddy's Laboratories (DRL) posted a net profit of Rs 325.20 crore for the quarter ended March 2007, against a net loss of Rs 23.7 crore in the corresponding quarter last year.

The company's revenues at Rs 1,557.30 crore during the fourth quarter of 2006-07 increased 125 per cent, compared with Rs 693.20 crore posted during the last quarter of 2005-06.

For the full year, DRL's revenues stood at Rs 6,509.60 crore, registering 168 per cent growth over the previous year's revenues of Rs 2,426.70 crore. The net profit during the year at Rs 932.70 crore increased 472 per cent compared with Rs 163 crore in 2005-06.

According to DRL Managing Director and Chief Operating Officer Satish Reddy, there has been a 44 per cent growth in active pharmaceutical ingredients (APIs) and 24 per cent growth in branded finished dosages. Sales from 180-day exclusivity of Ondansetron contributed to 4 per cent of the total revenues. Only 14 per cent of the total revenue of the company was from India, with international markets accounting for the rest 86 per cent.

He said the growth was primarily driven by the company's key brands of Omez, Nise, Stamio and Razo. DRL also launched several new products during the year with significant market share gains. The company launched a total of 21 new products during the year, which contributed Rs 24.7 crore. In terms of revenue, DRL claimed that it has emerged as the number one pharmaceutical company in the country. "For the next 12 months, Dr Reddy's is the number one pharmaceutical company in India. I don't know what happens after that," DRL Chairman Anji Reddy said. Authorised generics had contributed 24 per cent of the company's total revenue, "which may not be the case in the current financial. We can't expect dowry from the father-in-law every year," he said, while explaining DRL's problems in retaining its number one position.

The board of directors has recommended a final dividend of Rs 3.75 per share of face value of Rs 5 each.