• PAGE ONE
• INDEX
• HOME

Dr Reddy's net down under US GAAP

Our Bureau

HYDERABAD, Sept. 1

DR Reddy's Laboratories Ltd (DRL) has registered a steep fall in net profit for the year ended March 31, 2001 as well as for the first quarter of current fiscal ended June 30, 2001 under the US Generally Accepted Accounting Practices (GAAP) compared to t he figures announced by the company earlier under the Indian GAAP.

The difference in net profit for the last fiscal was Rs 70.3 crore, whereas the variation amounted to Rs 9.5 crore during the first quarter of current fiscal.

While the company had announced a net profit of Rs 144.47 crore for the last fiscal under Indian GAAP, it was down at Rs 74.19 crore as per US GAAP.

Similarly, the net profit for the first quarter of current fiscal stood at Rs 53.5 crore under Indian GAAP, while it was down at Rs 43.98 crore under US GAAP.

In a press communique issued here on Saturday, DRL announced the financial results for the quarter ended June 30, 2001 and for the year ended March 31, 2001 in accordance with the US GAAP.

According to US GAAP, the net revenues in first quarter were up by 25 per cent at Rs 299.5 crore compared to Rs 240.6 crore in the corresponding quarter of the previous year. The profit was up by 348 per cent at Rs 44 crore compared to Rs 9.8 crore in th e corresponding quarter.

As against this, the net profit for the quarter as per Indian GAAP was announced at Rs 53.5 crore. The difference between the Indian and US GAAP in net profits amounted to Rs 9.5 crore.

According to DRL, the difference was primarily on account of non-cash expenditure such as depreciation and amortisation, consolidation of subsidiary accounts and differences arising due to export benefit and dividend recognition.

Similarly, the net revenue for the last fiscal as per US GAAP registered a growth of 37.6 per cent at Rs 1,097.5 crore compared to Rs 797.6 crore for the previous year. The net profit was up by 162 per cent at Rs 74.2 crore as against Rs 28.3 crore in th e previous year.

As against this, the net profit for the year as per Indian GAAP was announced at Rs 144.5 crore. The difference between Indian and US GAAP in net profit amounted to Rs 70.3 crore.

According to the company, the difference was primarily on account of non-cash expenses such as depreciation and amortisation, difference in the treatment of research and development expenses and also consolidation of subsidiary accounts.

Meanwhile, of the 11 subsidiaries of DRL, five had incurred losses, four posted profits and there were no figures available for two subsidiaries for the fiscal ended March 31, 2001.

Reddy Netherlands BV, Reddy Antilles NV, Dr Reddy's Farmaceutica Do Brasil Ltda, Reddy Cheminor Inc and Compact Electric Ltd were among the subsidiaries which incurred losses. The profit making subsidiaries include Reddy Pharmaceuticals Hong Kong Ltd, Re ddy Pharmaceutical Singapore Pte Ltd, Reddy Biomed Ltd and Reddy Cheminor SA. The net income figures of Reddy US Therapeutics Inc and Zenovus Biotech Private Ltd were not available.