Indian Pharmaceuticals major Dr. Reddy's Laboratories (RDY) reported Friday a sharp increase in second-quarter profit, reflecting chiefly a 14% growth in revenues from Global Generics business.
For the second quarter of fiscal 2010, profit more than doubled to US$ 45 million or US$ 0.3 per share from US$ 22 million or US$ 0.1 per share in the previous year. In terms of Indian Rupees, profit was INR 2.17 billion or INR12.8 a share, up from INR1.05 billion or INR 6.2 a share last year. Profit, after adjusting for exceptions in the previous year, grew 79%.
Operating income improved to US$ 53 million or INR2.6 billion from US$ 37 million or INR1.8 billion in the second quarter of fiscal 2009.
Consolidated revenues for the quarter surged 14% to US$ 382 million or INR18.37 billion from US$ 336 million or INR16.15 billion, mainly driven by Global Generics.
Revenues from Global Generics business increased 14% to US$ 264 million from US$ 231 million, attributable to key markets of North America, Russia and India. Revenues from Pharmaceutical Services and Active Ingredients rose 11% to US$ 112 million US$ 100 million in the year-ago period.
Gross margin dipped to year-over-year to 47% from 49%, hurt by one-time inventory provisions of Euro 6 million in betapharm on account of non-moving stocks and US$ 4 million in the U.S. for inventory valuation adjustments of sumatriptan stocks lying with the company. Excluding the one-time items, the adjusted margins for the second quarter of fiscal 2010 stood at 51%.
For the first half of the year, consolidated revenues was INR36.6 billion, up 17% from the past year.
RDY closed Thursday's regular trading hours at $19.70 on the NYSE.
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