Dr Reddy Q4 net down 3.8%, posts Rs 917 cr FY09 loss

Dr Reddy's Laboratories posted a 3.76 per cent decline in net profit at Rs 156.1 crore for the fourth quarter ended March 31, 2009, as compared to Rs 162.2 crore in the corresponding period a year ago.

Total income increased by 12.36 per cent to Rs 1,166.5 crore for the quarter under review as against Rs 1,038.1 crore.

As per the audited consolidated results, the group has posted a net loss attributable to the shareholders of the parent of Rs 917.2 crore for the year ended March 31, 2009 as compared to a net profit of Rs 438.1 crore for the previous corresponding year.

According to a press release, the company recorded an impairment loss with respect to intangible assets related to its acquired German subsidiary Betapharm, amounting to Rs 316.7 crore (euro 47 million), before tax and with respect to goodwill of Rs 1,085.6 crore (euro 162 million). This is a one-time non-cash charge in the income statement and incorporates the provisions of applicable accounting standards.

Total income for the fiscal year increased by 34.73 per cent to Rs 7,000 crore from Rs 5,195.4 crore recorded in previous year. The growth in revenues was driven by the successful launch of the authorized generic version of GlaxoSmithKline’s Imitrex (Sumatriptan Succinate), in late November 2008 and by the key markets of North America and Russia. Excluding revenues from Sumatriptan, the year-on-year growth is at 24 per cent.

The company said revenues from global generics business is at Rs 4,980 crore ($979 million) in FY09 as against Rs 3,300 crore ($649 million) in FY08, with a year-on-year growth of 51 per cent. Revenues from pharmaceutical services and active ingredients (PSAI) increased by 13 per cent to Rs 1,880 crore ($369 million) in FY09 as compared with Rs 1,660 crore ($327 million) in FY08.

During the year, the company launched 116 new generic products, filed 110 new generic product registrations and filed 55 DMFs globally.

The company has also recommended a final dividend of Rs 6.25 (125 per cent) per equity share of Rs 5 face value, subject to the approval of shareholders.