Dr Reddy's Q2 net up 32 per cent, beats estimates
Dr Reddy's Laboratories Ltd, India's No 2 drugmaker by sales, today reported a 32 per cent jump in its net profit for the quarter ending September, topping estimates.business Updated: Oct 23, 2010 14:46 IST
Dr Reddy's Laboratories Ltd, India's No 2 drugmaker by sales, on Saturday reported a 32 per cent jump in its net profit for the quarter ending September, topping estimates.
The New York-listed company reported a net profit of 2.87 billion rupees ($64 million) in the fiscal second-quarter ended September 30, up from 2.17 billion rupees in the year-ago period, under international accounting standards.
It said strong sales in the domestic market helped boost profits.
Revenue rose 1.8 per cent to 18.70 billion rupees.
A Reuters poll of brokerages had estimated quarterly profit at 2.56 billion rupees on revenue of 18.89 billion rupees.
Dr Reddy's Laboratories' move to voluntarily recall four products from the US market last September had been expected to hurt sales numbers in the just-ended September quarter as the year-ago quarter benefited from sales of these products.
Sales in US, which contributes a third of the company's revenue, rose 3 per cent while European sales revenue fell 17 per cent.
Sales in India jumped 25 per cent in the quarter.
The company's German unit Betapharm, which it bought in 2006 for $572 million, has been a drag on its earnings due to regulatory issues. Dr Reddy's has been trying to turn around the unit, on which it took a hefty write-off last fiscal year.
Last month, a company executive told Reuters the drugmaker did not expect further writedowns for Betapharm.
Shares in the company have surged 41 per cent this year, outpacing the 29 per cent rise in the sector index and the 15.5 per cent rise in the main index.