US, Russia drive Dr Reddy’s growth

City-based pharma major registers highest ever increase of 76% in net at `690 crore during second quarter.

Hyderabad: Beating estimates, Dr Reddy’s Laboratories Limited on Thursday reported a significant 76 per cent jump in net profits to Rs 690.3 crore for the second quarter ended on September 30, driven by robust growth in North America and emerging markets such as Russia.

City-based pharma major posted Rs 392.5 crore net in the same period a year ago. However, the total revenues for the period went up 17 per cent to Rs 3,357.5 crore from Rs 2,880.9 crore a year ago.

“This is highest ever growth in profitability that Dr Reddy’s have announced in a quarter. This is even higher than the profits the company had generated when it launched Olanzapine a year ago,” Saumen Chakraborty, CFO, Dr Reddy’s Labs, told media here after announcing the results.

He also said the company had achieved robust margins despite the fact that it had not launched any exclusive product during the three-month period under review.

The global generics segment, the mainstay of the company, accounted for Rs 2,654.8 crore in revenues, a growth of 32 per cent from Rs 2,010.3 crore a year ago. North America, India, Russia and other emerging markets had driven the growth. However, sales from Europe remained flat at Rs 176.1 crore.

“Our sales growth in North America was 43 per cent at Rs 1,324.4 crore year-on-year while Russia and other CIS countries accounted for an impressive 44 per cent upswing at Rs 551.6 crore. The revenues in Russia were driven by OTC sales which accounted for 33 per cent total sales,” said Abhijit Mukherjee, President, Generics, Dr Reddy’s.

In India, Dr Reddy’s registered 8.5 per cent upswing in sales to Rs 421 crore from Rs 388 crore a year ago. Of this, Rs 29 crore came from the sales of biosimilars. “The company was able to post higher growth in the country despite channel disruptions in the wake of pricing policy complications,” Mukherjee added. However, the company suffered 19 per cent fall in revenues from Pharmaceutical Services and Active Ingredients (PSAI) segment to Rs 640.3 crore from Rs 787.5 crore a year ago.

“The de-growth is on account of higher base in the previous year when we had higher contribution from the segment due to new product launches,” he explained.

During the period, Dr Reddy’s has launched 19 new products, filed 13 new product registrations and submitted eight DMFs globally.

Glenmark Q2 net down 1.56%

New Delhi: Glenmark Pharmaceuticals has reported a 1.56 per cent dip in its consolidated net profit at Rs 154.29 crore for the quarter ended September 30, 2013 mainly on account of increased taxes.

The company had posted a net profit of Rs 156.75 crore for the corresponding period of the previous fiscal, Glenmark Pharmaceuticals said in a statement. Net Profit is after taxes and minority interests and share of profits/loss of associates, it added.

Consolidated net sales of the company however rose to Rs 1,463 crore for the quarter under consideration as against Rs 1,255.19 crore for the same period year ago, it added.

"Despite challenges in the operating environment, we have managed to register decent sales growth of 17 per cent on the back of good performances by our US and India businesses," Glenmark CMD Glenn Saldanha said.
The company has been also making steady progress on the Innovation R&D front with 4 NCE & NBE molecules in clinical trials, he added.

Allahabad Bank Q2 net up to Rs 275.81 cr
New Delhi: State-owned Allahabad Bank reported 17.7 per cent increase in net profit to Rs 275.81 crore for the July-September quarter. The Kolkata-based public sector lender had posted a net profit of Rs 234.20 crore for the same period of last fiscal.

The total income during the quarter increased to Rs 5,303.06 crore, from Rs 4,582.64 crore in the year-ago period. Operating profit increased to Rs 1,154 crore in the September quarter, as against Rs 802 crore in the same period of the previous fiscal.

The net interest income during the quarter increased to Rs 1,309 crore as against Rs 1,174 crore in the same period a year ago.