Dr Reddy & #39;S Q1 Net Soars 115% To Rs 53.5 Crore

With an increased dose of international formulations and generics business, Dr Reddy's Laboratories has recorded 115 per cent growth in net profit at Rs 53.5 crore for the first-quarter ended June 30, 2001, compared with Rs 24.9 crore in the corresponding quarter of the previous fiscal.

The sales of the company grew by 32 per cent growth in sales at Rs 283.8 crore (Rs 214.6 crore). The operating-profit margin of the company has gone up to 26.07 per cent of sales (22.39 per cent). The exports of the company grew by 83 per cent to Rs 150 crore and account for 53 per cent of the total turnover.

The company's sales from the generics business have touched Rs 26.1 crore (Rs 10 lakh). While both oxaprozin 600 mg tablets and rantidine contributed 81 per cent of the generics turnover, the rest has come from famotidine 20/40 mg tablets.

In the branded formulations segment, revenues from international markets were higher by 89 per cent at Rs 46.1 crore, while the domestic market recorded a growth of 17 per cent to touch Rs 93.8 crore.

Exports in bulk-drug segment recorded a growth of 36 per cent at Rs 77.8 crore and account for 70 per cent of the total sales in the segment. During the quarter, the company has launched four new bulk drugs: candesartan, topiramate, raloxfene and clopidogrel.

... board okays stock-split

The board of directors of Dr Reddy's Laboratories, at a meeting on Tuesday, has decided to split the existing equity shares of Rs 10 each into two equity shares of Rs 5 each in line with its American Depository Shares.

The board has also decided to form a new company for proteomics and discovery-services business with an investment of Rs 25 crore. Proteomics is a study of gene-expressed proteins for possible therapeutic agents or the targets for discovery of new molecules.

Other decisions of the board include reserving upto 3 per cent of the issued capital for employee stock option scheme and enhancement of FII-holding limit up to 49 per cent from the existing 30 per cent.

The company will seek the shareholder approval for all the above proposals at its annual general meeting to be held on September 24, 2001.