Pharma major Dr Reddy’s Laboratories net profit rose 28 per cent at Rs 336 crore in the first quarter ended June 30, 2012, compared with Rs 263 crore in the year-ago period.
The revenue of the Hyderabad-based company too grew 28 per cent at Rs 2,541 crore (Rs 1,978 crore).
The increase in profit and revenue was driven by growth in all markets including India, Mr Umang Vohra, Chief Financial Officer, told newspersons here on Thursday.
There was a 23 per cent increase in selling, general and administrative expenses due to salary increments, higher sales and marketing costs, and the effect of rupee depreciation against multiple currencies.
The revenue from North America grew 28 per cent at Rs 790 crore. “Though this is lower on a sequential basis, this is what we expected,’’ he said.
Mr Abhijit Mukherjee, President and Head of Global Generics division, said margins in the US were likely to be under pressure due to increasing competition and price erosion.
Dr Reddy’s is expected to launch about 15 products in the US this financial year.
The Russian and German markets had grown. The growth in the domestic market too was noticeable.
The company’s German arm Betapharm had turned around.
“Now, it is managing its own cashflows. But the market remains challenging,’’ Mr Vohra said.
MEXICO PLANT
The existing import alert on the company’s Mexico plant is likely to be lifted in two or three weeks.
The US Food and Drug Administration was ‘satisfied’ with the measures taken by the company in a recent inspection and had closed the warning letter.
In June 2011, the USFDA had imposed an import alert for certain specified products made at the facility that makes intermediates, API and steroids.
The adverse revenue impact due to this could be $15 million a year.
Dr Reddy’s scrip declined 0.98 per cent to end at Rs 1,655.60 on the BSE today.
Top officials absent
Perhaps for the first time, neither the Chief Executive Officer, Mr G.V. Prasad, the Managing Director and Chief Operating Officer, Mr Satish Reddy, nor Founder-Chairman, Dr Anji Reddy, was present at the media conference to announce the company’s results.
The conference was instead addressed by the Chief Financial Officer, Mr Umang Vohra; with the President and Head of Global Generics, Mr Abhijit Mukherjee, and the President, API, Dr R. Ananthanarayanan.
Asked about the absence of the CEO, the MD or Mr Anji Reddy, Mr Vohra said it was part of a new policy by which the company wanted to promote interaction with other executives with key managerial roles.