Dr Reddy’s Lab posts 66.6% jump in quarterly net profit

Dr Reddy’s Lab posts 66.6% jump in quarterly net profitPharmaceuticals giant Dr Reddy's Laboratories Ltd on Tuesday reported an impressive increase of 66.6 per cent in its quarterly net profit, thanks to strong sales in North America and emerging markets.

Dr Reddy's said its net profit jumped to Rs 571.01 crore in the quarter ended March 31, 2013, from Rs 342.70 crore in the corresponding period of the previous year.

The pharmaceuticals giant's net profit also got a boost from the $22.5 million one-time settlement with Nordion Inc. Dr Reddy's received the amount towards damages incurred by it for the alleged violation of a service contract for bioequivalence studies.

Consolidated net sales jumped 25.6 per cent year-on-year from Rs 2,658 crore in Q4 of FY2012-13 to Rs 3,340 crore in FY 2013-14.

G V Prasad, chairman of the company, "There's a portfolio shift among generic companies and emerging markets are the new frontiers of growth."

While generic sales in emerging markets increased 25 per cent quarter-on-quarter; in Europe, the company suffered a decline of 6.6 per cent in sales, from Rs 826 crore to Rs 772 crore.

Managing Director & COO K Satish Reddy also admitted that the company would have to face price controls in India and some regulatory challenges in the US.

For the full fiscal year, the company's net profit jumped 17.6 per cent to Rs 1,678 crore, while net sales grew 26 per cent to Rs 11,627 crore.




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