Dr Reddy's net profit up 108%

Dr Reddy's Laboratories has announced 108 per cent increase in net profit for the quarter ended June 30, 2006 at Rs 131.81 crore compared with Rs 63.34 crore for the corresponding period last year.

According to GV Prasad, chief executive officer, the company has registered high growth on the back of revenues from authorised generics, acquisitions and increased business from organic growth.

The company expects to maintain the momentum in the current quarter as well.

In authorised generics, according to a company representative, DRL is only distributing products and, hence, is not incurring manufacturing costs.

As a result, it is getting straight income resulting in higher profits. Total income (net of excise) increased by 44 per cent from Rs 536.32 crore for the quarter ended June 30, 2005 to Rs 772.18 crore for the quarter ended June 30, 2006. The basic earnings per share of Rs 5 was Rs 17.19 for the quarter compared with Rs 8.28 for the quarter ended June 30, 2005.

On a consolidated basis, the group posted a net profit of Rs 128.92 crore for the quarter ended June 30, 2006, whereas the same was Rs 30.69 crore for the quarter ended June 30, 2005, registering an increase of 320 per cent.

Total income (net of excise) was Rs 1373.67 crore for the quarter ended June 30, 2006 compared with Rs 563.66 crore for the quarter ended June 2005, an increase of 143.7 per cent.

The EPS for the quarter was Rs 16.81 compared with Rs 4.01 for the corresponding quarter in the previous year.