Pharma major Dr Reddy's Laboratories Ltd's recorded its highest ever quarterly net profit and sales driven mainly by its performance in the global generics market.
The net profit increased 88 per cent at Rs 512 crore in the third quarter ended December 31, 2011 compared with Rs 273 crore in the corresponding quarter of previous year.
The total income of the Hyderabad-based company rose 46 per cent to Rs 2,769 crore (Rs 1,898 crore).
The increase in revenue and net profit was driven by a 56 per cent rise in sales in the global generics segment at Rs 2,128 crore (Rs 1,358 crore), said Mr K. Satish Reddy, Managing Director and Chief Operating Officer, told newspersons here on Friday.
The limited competition product Olanzapine, launched in the US during the quarter, alone had brought in $99 million revenue.
Strong volume growth in other key brands such as lansoprazole, tacrolimus, omeprazole and increase in products from Shreveport facility more than doubled revenue in the North American market.
In the over-the-counter private label segment in the US too Dr Reddy's crossed the landmark revenue of $100 million.
In the domestic market, revenue grew by 11 per cent. “This was in spite of low sales recorded in the industry in October 2011. India continues to be a high priority market for us,'' Mr Reddy said.
FLAT GROWTH
The growth in Germany and Russia remained almost flat due to price erosion in products within tenders.
“The muted growth in Russia was more due to seasonal and inventory optimisation factors. So, we are not worried about this,'' he added.
OUTLOOK
The company has lined up some key products for launch in the US market in next six months.
In addition, the company will be benefited from the Olanzapine exclusivity for the entire fourth quarter with a current market share of 60 per cent.
In addition, the formulation division of the Special Economic Zone being set up at Medak by Dr Reddy's would be operational by August this year,'' he added.
The company's scrip rose 2.16 per cent to close at Rs 1,670.50 on the Bombay Stock Exchange on Friday.