Hyderabad-based pharmaceutical major, Dr Reddy’s Laboratories Limited, has witnessed a marginal increase of 2.4% in its net profit to Rs 342.7 crore for the fourth quarter ended March 2012, as compared to Rs 334 crore in the corresponding quarter of the previous year. Total Income grew 34.2% to Rs 2,638 crore for the quarter, as against Rs 1,966 crore.
For the full year ended March 2012, the company posted a net profit of Rs 1426 crore, as against Rs 1,104 crore a year ago, reflecting a growth of 29%. Total income increased 30% to Rs 9,597 crore in FY12, from Rs 7,357 crore in the previous year, primarily driven by key markets of North America and Russia in global generics segment and pharmaceutical services and active ingredients segment.
Revenues from the global generics segment stood at Rs 7,024 in FY12, as against Rs 5,334 crore in the previous year, registering a growth of 31%.
North America continued to contribute a majority to the global generics segment with revenues of Rs 3,190 crore, with growth largely driven by new product launches of ziprasidone, fondaparinux, amoxicillin, clavulanic acid, products from Shreveport facility and market share expansion in existing products of lansoprazole and omeprazole mg OTC (over-the-counter).
Revenues in Russia and other Commonwealth of Independent States (CIS) markets stood at Rs 1,330 crore in FY12, driven by volume increase across key brands and OTC portfolio, which grew 32% over previous year.
Pricing pressures in German market
Revenues from Germany, however, declined by 15% (in local currency) to Rs 510 crore in FY12, which Dr Reddy's attributed to the continued tenderisation of the German market.
“In the fourth quarter of 2011-12, there were triggering events in the German market relating to reduction in the reference prices and additional tenders at low-bid prices. Pursuant to such adverse market developments, the company has recorded an impairment loss with respect to its intangible assets amounting to Rs 102 crore as at March 2012,” Dr Reddy’s said in a press release today.
Dr Reddy's stocks were trading 2.8% down at Rs 1,652 apiece on BSE.