HYDERABAD: Dr. Reddy's Laboratories has reported a consolidated sales turnover of Rs. 2,004 crore for the second quarter of the current fiscal ended September 30, 2006.

The company posted a net profit of Rs. 280 crore during the quarter under review.

Announcing the results after the board meeting at a press conference here on Friday, Managing Director, K. Satish Reddy, said acquisitions and authorised generic sales contributed to the improved performance. He said the acquisitions in Mexico and Germany accounted for 20 per cent of the total revenue.

The revenue in Germany shot up from Rs. 198.80 crore to Rs. 255.40 crore while in Mexico it increased from Rs. 124.40 crore to Rs. 143.40 crore.

Mr. Reddy said the company could improve its core businesses by 42 per cent that excluded the authorised generic sales and acquisitions during the quarter under review.

He said revenues from the international markets were Rs. 1,760 crore and it contributed 88 per cent of the total revenues compared to 62 per cent in the corresponding quarter of the previous fiscal.

The company's key brands Nise, Omez and Raxo were the main growth drivers in the branded formulations in India with the revenue rising to Rs. 174 crore in the second quarter from Rs. 151 crore. Razo-D and Omez-D were among the top ten successful launches this year, Mr. Reddy said.

The Vice-Chairman and CEO, G. V. Prasad, said the high volume and low margin nature of authorised generic sales was the reason for the fall in the gross profit margin.

On the company managing to improve the performance of the German entity in the absence of a change in the drug price policy, Mr. Prasad said the company achieved the growth through improved volumes and new launches and admitted that pricing pressure in Germany continued.

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