Dr Reddy's net down 11 per cent

Dr Reddy's Laboratories posted a 11 per cent decline in net profit for the quarter ended December 2003 at Rs 59.2 crore as against Rs 66.1 crore posted for the corresponding period last fiscal.

The decline in profit was despite a foreign exchange gain of Rs 6.2 crore as against Rs 3.6 crore loss during Q3 of last year. According to the US GAAP financials provided by the company, revenues increased 18 per cent to Rs 513.8 crore (Rs 434.8 crore).

The R&D expenditure grew 59 per cent to Rs 51.6 crore (Rs 32.5 crore). A 18 per cent increase in selling, general and administrative expenses too had its share in dragging down the Q3 profit.

As in the earlier quarters, the company's investments in patent challenges and human resources remained a significant factor for the increase in SG&A expenses, a DRL release said.

The diluted earnings per share were at Rs 7.72 against Rs 8.63. Revenues outside India during the quarter grew by 25 per cent to Rs 350 crore (Rs 280 crore) and contributed 68 per cent to total revenues as against 64 per cent.

In the active pharmaceutical ingredients segment, revenues were up 32 per cent at Rs 190 crore, the growth driven by Europe and Indian markets.

In the generics segment, revenues from North America were up 16 per cent to Rs 85.6 crore and contributed 81 per cent to the segment revenues. In the international branded formulations segment, revenues increased by 34 per cent to Rs 91 crore.