The Hindu Business Line : Global buys boost Dr Reddy's net

Impressive quarter
Net profit grew to Rs 139.8 crore in the quarter
The diluted EPS was put at Rs 18.15
Revenues from international markets grew to Rs 1,170 cr

Hyderabad , July 27

Boosted by contributions from global acquisitions and authorised generics, Dr Reddy's Laboratories has posted revenues of Rs 1,400 crore in the first quarter of financial year 2006-07, showing a 151 per cent growth over Rs 560 crore achieved in the same quarter previous year.

The net profit grew to Rs 139.8 crore in the quarter as against Rs 34.7 crore in the comparative quarter of last fiscal. The diluted earning per share (EPS) was put at Rs 18.15 as against Rs 4.53 in the corresponding quarter. The diluted EPS for the whole of 2005-06 was at Rs 21.24.

Acquisitions pay

Authorised generic versions of Merck's Zocor and Proscar contributed net revenues of Rs 334.6 crore, while the German acquisition (Betapharm) got Rs 199.7 crore and the Mexican one contributed Rs 124.1 crore. While revenues from authorised generics contributed 24 per cent, acquisitions chipped in 23 per cent to total revenues.

Announcing the unaudited financial results for the quarter ended June 30, 2006 at a press conference here on Thursday, Mr G.V. Prasad, Vice-Chairman and Chief Executive Officer, said the company acquired Betapharm (Germany) for long-term benefits. Its contribution would be in the form of sales and brand equity. He, however, said the German pricing environment had been a little negative for the company in the first quarter.

Dr. Reddy's scrip gained Rs 43.9 on Thursday. It opened at Rs 1,323.4 and closed at Rs 1,367.3, showing an increase of 3.32 per cent.