Financial Daily from THE HINDU group of publications
Wednesday, Oct 27, 2004
Dr Reddy's net plummets 63 pc to Rs 38.93 cr in Q2
Hyderabad , Oct. 26
DR Reddy's Laboratories Ltd has registered a major fall of 62.74 per cent in net profit for the second quarter of current fiscal ended September 30 at Rs 38.93 crore from Rs 104.51 crore in the corresponding quarter of previous fiscal.
While this is so in terms of Indian GAAP financials submitted to the domestic stock exchanges, the company reported a fall of 44 per cent in net profit for the quarter at Rs 51.7 crore (Rs 92.9 crore) as per the US GAAP financials.
While the Indian GAAP financials show a fall of 3.95 per cent in turnover at Rs 453.51 crore (Rs 472.18 crore), the unaudited US GAAP financials reported a marginal growth of 1 per cent in total revenues at Rs 540.7 crore (Rs 537.7 crore).
Though the company recorded a growth of 2 per cent (US GAAP) in gross profit at Rs 296.7 crore (Rs 292.3 crore), its operating profit has dropped by 39 per cent at Rs 52.4 crore (Rs 86.5 crore), owing to an increase of 18 per cent in selling, general and administrative (SGA) expenses at Rs 172.9 crore (Rs 147.1 crore) and 28 per cent rise in R&D expenses at Rs 62.7 crore (Rs 49 crore).
The EPS for the quarter under review has come down to Rs 6.75 (Rs 12.14) in terms of US GAAP, while it stood at Rs 5.09 (Rs 13.66) as per the Indian GAAP financials.
According to the segment-wise revenues, submitted to the Indian bourses as per the Indian GAAP financials, the company suffered a setback in turnover for the quarter under review from segments such as active pharmaceutical ingredients (APIs) and intermediates, generics and drug discovery. It recorded a growth in revenues from both formulations and critical care and biotechnology segments.
The revenue from APIs and intermediates has dropped to Rs 178.63 crore (Rs 208.8 crore), generics to Rs 60.16 crore (Rs 62.54 crore) and drug discovery to Rs 2 lakh (Rs 6 lakh). The company reported a growth in revenue from formulations at Rs 217.18 crore (Rs 198.67 crore) and critical care and biotechnology at Rs 11.58 crore (Rs 9 crore).
Interestingly, critical care and biotechnology was the only segment where the company could report a growth in profit, whereas other segments such as APIs and intermediates, formulations and generics suffered a significant fall in profits during the quarter under review. The loss from drug discovery segment increased to Rs 25.32 crore from Rs 14.53 crore in the corresponding quarter of previous fiscal.
In terms of consolidated unaudited financial results, the company's net profit for the quarter stood at Rs 46.91 crore (Rs 88.85 crore) on a turnover of Rs 538.13 crore (Rs 546.09 crore).
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