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it of Rs 210 crore for the quarter ended June 30, down by 14.3 per cent from Rs 244 crore in the first quarter of the previous fiscal.

Revenues for the quarter stood at Rs 1,683 crore, down by 7 per cent from Rs 1,818 crore in the corresponding quarter of the previous year.

Though Dr Reddy’s MD and COO K Satish Reddy agreed that this is a fairly slow start, he was quick to add that this does not reflect the year’s performance.

“Delayed launches and slow takeoff of some of the new products is one of the reasons for the poor performance from North American markets. Also, currency fluctuations have shown effect,” Reddy told mediapersons after announcing the quarterly results.

He said the company is looking at legal remedies to counter the injunction order issued by an USA court against the launching of Allegra-D drug in that country.

Revenues from North American markets stood at Rs 502 crore against Rs 718 crore last year, down by 30 per cent over the corresponding period of the previous year. The overall revenue from foreign operations, recorded at Rs 1,342 crore, was down by Rs 174 crore over the previous year.

GV Prasad, Vice Chairman and CEO, said that while the revenue from European markets grew at 29 per cent over the previous year, Betapharm, the company’s German arm, continued to dent the revenue from that region at Rs 131 crore — down by 18 per cent over the previous year.

“The German market is stabilised now. Germany has turned around, compared to the last year. Cost-cutting measures have been taken there. Manpower rationalisation is one of the measures taken there. We also won small quantities in tender market,” Prasad said.

The Indian and Russian markets to some extant continue to support the loss of revenues at other places. The company earned Rs 341 crore and Rs 255 crore from Indian and Russian markets up by 13 and 36 per cent respectively.

He said they are planning to launch 11 new products in USA and 25 to 30 in the Indian market by the end of this year. Speaking on the USD 3-billion revenue target by 2013, Prasad said the USA market continues to be a growth factor for the company, and they expect around one third of their total revenue to be from that market by then.

[Story Source]

This post was submitted by komal.