Dr Reddy's net at Rs 166.7 cr

Pharmaceutical company Dr Reddy's Laboratories reported a consolidated net profit of Rs 166.7 crore for the fourth quarter ended March 31, 2010, as compared with a net loss of Rs 977.7 crore during the same time last year.

Revenues during the quarter, however, declined 17.26 per cent to Rs 1,642.4 crore from Rs 1,985.1 crore in the corresponding period last year.

“The profitability is on the back of growth in base business and not on upsides,” said vice-chairman and chief executive officer GV Prasad here on Thursday.

For the full year 2009-10, the company registered a net profit of Rs 106.8 crore as compared with a net loss of Rs 516.8 crore last year. Revenues increased 1.2 per cent to Rs 7,027.7 crore from the Rs 6,944.1 crore.

The company during the year took a write down of intangible assets to the tune of Rs 345.6 crore as against Rs 316.7 crore in 2008-09. In terms of goodwill, it took a hit of Rs 514.7 crore this year, as compared with Rs 1,085.6 crore.

Addressing the media, Prasad said the company saw flat growth in revenues during the year as there were no upsides from Sumatriptan, used for treating migraine. In 2008-09, the drug contributed Rs 718.8 crore – 10 per cent of the total revenues.

Global revenues from the generics decreased 2.37 per cent to Rs 4,860.5 crore from Rs 4,979 crore last year. Revenues from North America and Europe declined 15 and 19 per cent respectively in 2009-10. The company had two product recalls during the year.

Its German subsidiary betapharm continued to bleed. Revenues from it reduced 26 per cent to Rs 730 crore, from Rs 985 crore last year as Germany took to tender-based supply model.