The Hindu : Business : Dr. Reddy's net dips 78 p.c.

Online edition of India's National Newspaper
Wednesday, Jul 28, 2004

Business

Business

Dr. Reddy's net dips 78 p.c.

By Our Special Correspondent

HYDERABAD, JULY 27. Dr. Reddy's Laboratories recorded a 78 per cent drop in net profit to Rs. 17.3 crores for the quarter ended June 30, 2004, against Rs. 79 crores in the corresponding period of the previous year. Aided by a Rs. 25 crore accrual on account of licence fee, the revenues for the quarter showed a nominal 6 per cent growth to Rs. 510 crores from Rs. 481 crores.

Consequently diluted EPS fell steeply to Rs. 2.27 from Rs. 10.35 in the corresponding quarter of the previous year. During the quarter, R & D investments increased by 61 per cent to Rs. 52.5 crores from Rs. 32.6 crores.

The company invested Rs. 28.6 crores in drug discovery primarily in the clinical development of DRF 10945 in Canada. It also reported a heavy forex loss of Rs. 32.30 crores for the quarter, against a gain of Rs. 28.3 crores for the full year ended March 2004. Revenues from active pharmaceutical ingredients grew by 17 per cent to Rs. 190 crores (Rs. 170 crores). However, revenue from generics dropped sharply to Rs. 81 crores from Rs. 120 crores.

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