Mumbai, Oct. 24: Diving sales of the generic version of Prozac adversely affected the performance of Dr Reddy's Laboratories Ltd (DRL) for the second quarter of the current fiscal with net profits sliding by more than 30 per cent to Rs 99.20 crore against Rs 143.43 crore in the corresponding period of the previous year.
Lower sales of the generic version also impacted the company’s topline with net sales declining 13 per cent to Rs 427.78 crore as compared with Rs 494.31 crore in the same period of the previous year. However, net profit topped analysts’ estimates, which had expected the bottomline to take a hit of 35 per cent.
DRL pointed out that while the total revenue of Rs 492.8 crore is a decrease of 4 per cent, the second quarter of the previous fiscal includes revenues of Rs 172.4 crore from fluoxetine, for which it was granted marketing exclusivity of 180 days. It added that excluding fluoxetine, total revenues have registered a growth of 45 per cent.
However, the stock markets did not take note of the company’s explanation and the scrip was drubbed by Rs 17.50 to end lower at Rs 726.40. DRL said that during the quarter, active pharmaceutical ingredient (API) sales outside India increased by 55 per cent to Rs 1,24.4 crore compared with Rs 80.3 crore the previous year. Similarly, sales of branded formulations increased 18 per cent from Rs.1,70.9 crore to Rs 202.1 crore.
Internationally, in branded formulations sales were placed at Rs 67.8 crore, a growth of 12 per cent, driven by an increase in revenue from Russian and CIS markets (Rs 7.7 crore and Rs 2.4 crore respectively).