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Journalism of Courage
DR Reddy8217;s Laboratories DRL has reported a deep plunge close to 90 per cent in its net profit touching close to Rs 4.34 crore as against Rs 44.41 crore in the corresponding period last year. Total income stood at Rs 383.66 crore as against Rs 406.26 crore.
The fall is attributed to its thrust on the R038;D efforts, with consolidated investments of Rs 70.5 crore as against Rs 51.6 crore in Q3, FY04, which is 15 per cent of the total revenue as against 10 per cent in the generics segment.
As per the US GAAP consolidated account, Dr Reddy8217;s has reported Rs 460 crore income for the third quarter as against Rs 510 crore in Q3, FY04. In a release, the company stated that in the active pharmaceutical segment APIs, the consolidated revenue from India decreased by 25 per cent to Rs 40 crore as against Rs 53 crore in Q3, FY04. And from Europe it posted revenue of Rs 21 crore as against Rs 53 crore primarily on account of decline in revenue from Ramipril. Revenue from North America decreased by 18 per cent to Rs 40 crore against Rs 49 crore. In the generics segment, revenue decreased to Rs 96 crore as against Rs 105 crore in Q3 FY04.
In the branded formulations segment, revenue saw a rise of 12 per cent at Rs 102 crore, which was driven mainly by the performance of CIS countries. In India, DRL posted a revenue of Rs 99.3 crore, a dip of 5 per cent. New product launches contributed 7 per cent to the total revenue, despite a decline in the revenues by its key brand, Omez.
On the results, G.V. Prasad, Chief Executive Officer of Dr Reddy8217;s said: 8216;8216;Our profitability in the third quarter was significantly lower due to the impact of decline in sales as well higher investments in the R038;D projects and business building initiatives.8217;8217;
