Dr Reddy's Laboratories registered over three-fold rise in its net profit at Rs 187.9 crore for the quarter ended December 31, 2006, compared with Rs 62.8 crore in the corresponding quarter last year, up 199 per cent. | |
| Total revenue went up 160 per cent at Rs 1,543.4 crore compared with Rs 592.6 crore in the corresponding previous quarter. The increase was mainly driven by the North American business, besides acquisitions. |
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Net income as a percentage of total revenues increased by 12 per cent in the third quarter from 11 per cent in the corresponding quarter last year, even as the cost of revenues (expenditure) was up significantly to 56 per cent of the total revenues at Rs 869 crore compared with 49 per cent in the corresponding quarter last year, which was Rs 291 crore in absolute terms.
| Rs crore | Quarter ended Dec | | 2005 | 2006 | | Total revenues | 592.60 | 1543.40 | | Cost of revenues | 291.00 | 869.00 | | Gross profit | 301.60 | 674.40 | | Operating income | 74.70 | 210.50 | | Net income | 62.80 | 187.90 | | Net income to revenues (%) | 10.59 | 12.17 |
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| Disclosing the quarterly results here on Monday, Satish Reddy, managing director of the company, said all the core businesses including active pharmaceutical ingredients (APIs), branded and custom pharmaceutical services (CPS) had contributed significantly to achieve this growth. |
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| The company has also achieved a significant milestone of crossing the $1-billion mark in revenues for the nine-month period of the current financial year, which stood at $1.1 billion, he added. |
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| Revenue from international markets increased by 241 per cent (65 per cent rise in previous corresponding quarter) at Rs 1,320 crore, which is 86 per cent of its total revenues. While expecting to continue the current momentum in the next quarter as well, GV Prasad, CEO, said the company would continue to look at acquisitions as part of its growth strategy. |
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| According to him, the cost of revenues has gone up mainly on account of increase in transportation cost. |
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| On its segment-wise performance, revenues from core business, excluding contribution from authorised generics and acquisitions, increased by 38 per cent to Rs 820 crore (Rs 590 crore). |
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| The API business revenues increased by 29 per cent to Rs 270 crore from Rs 210 crore in the corresponding previous quarter. |
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| Similarly, revenues from the branded formulations business increased by 18 per cent at Rs 320 crore from Rs 270 crore in the corresponding quarter last year, mainly driven by growth in India and Russia. |
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| Revenues from the custom pharmaceuticals services business was up at Rs 156.9 crore from just Rs 10.1 crore in the corresponding quarter last year. |
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