Feb 14, 2013, 08.51 PM | Source: Moneycontrol.com
Dr Reddy's Laboratories missed street expectations on Thursday as third quarter consolidated net profit declined a higher-than-expected 29 percent year-on-year at Rs 363 crore.
Dr Reddy's Laboratories missed street expectations on Thursday as third quarter consolidated net profit declined a higher-than-expected 29 percent year-on-year to Rs 363 crore.
Consolidated revenue of Rs 2,865 crore, up 3.5 percent from a year ago was also lower-than-expected.
Analysts on average had expected the pharma major to report a net profit of Rs 428 crore on revenue of Rs 2,913 crore.
While overall expenses rose in Q3, in the year-ago quarter, Dr Reddy's earnings were boosted by exclusivity of Zyprexa generic. Teva Pharmaceutical Industries and Dr Reddy's had in Oct 2011 launched a generic version of Eli Lilly's Zyprexa (schizophrenia treatment drug) and were awarded a 180-day period of marketing exclusivity.
Operating profit margin plunged quite significantly to 15.8 percent from 27.2 percent and analysts expectation of 21 percent.
Last quarter, the company's research and development expenses rose 34 percent to Rs 203 crore, while selling general and administrative (SG&A) expenses were up over 11.5 percent at Rs 857 crore.
Meanwhile, its revenue from pharmaceutical services and active ingredients (PSAI) last quarter rose 24 percent to Rs 865 crore. However, global generics revenue was down 2 percent at Rs 2,083 crore. Proprietary products revenue increased to Rs 40 crore from Rs 32 crore.
Excluding the impact of Olanzapine profit share in the year ago quarter, global generics revenue rose 24 percent, driven by North America and emerging markets, Dr Reddy's said.
While it launched 17 new products during the quarter, 13 new product registrations were filed, it added.
Dr Reddy's revenue from North America was up 38 percent (excluding Olanzapine impact) to Rs 920 crore and revenue from Russia and other CIS countries was up 32 percent to Rs 440 crore.
India revenue was up 12 percent to Rs 370 crore, however, Europe revenue fell 20 percent to Rs 190 crore.
Dr Reddy's shares were down 1.6 percent at Rs 1,874.30 on NSE in afternoon trade.
In a BSE filing, Dr Reddy's Laboratories Ltd said,
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