FINANCIAL HIGHLIGHTS CONSOLIDATED REVENUES

CONSOLIDATED REVENUES decreased by 23% to Rs 50,006 million ($1.25 billion) in 2007-08 from Rs. 65,095 million in 2006-07.

OPERATING INCOME decreased by 70% to Rs 3,358 million in 2007-08 from Rs 11,224 million in 2006–07.

PROFIT BEFORE TAX AND MINORITY INTERESTS decreased by 67% to Rs 3,438 million in 2007-08 from Rs. 10,500 million in 2006-07.

PROFIT AFTER TAX decreased by 50% to Rs 4,678 million in 2007-08 from Rs. 9,327 million in 2006-07.

FULLY DILUTED EARNINGS PER SHARE decreased to Rs. 27.73 in 2007–08 from Rs. 58.56 in 2006–07.

R&D EXPENSES grew by 43 per cent to Rs. 3,533 million for 2007–08. As a share of total revenue, R&D expenditure was at 7% in 2007–08 as compared to 4 per cent in 2006-07.

REVENUES FROM DIFFERENT BUSINESSES

REVENUE FROM API slightly decreased by 1% to Rs. 11,805 million in 2007–08 from Rs. 11,883 million in 2006–07. International revenues accounted for 80% of API revenues. Revenues in 2006–07 included the benefit of upsides in sertraline & rabeprazole.

FORMULATIONS REVENUES increased by 16% to Rs 15,241 million from Rs. 12,319 million in 2006–07. This growth was primarily driven by the performance of India, Russia, Romania, Venezuela & Other CIS markets.

Revenues in India grew by 16% to Rs. 8,060 million in 2007–08.

North American revenues at Rs. 8,024 million in 2007– 08 as against Rs. 23,617 million in 2006–07.

REVENUES FROM GENERICS decreased by 46% to Rs. 17,782 million in 2007–08 from Rs. 33,224 million in 2006–07.

Revenue from international markets increased by 17% to Rs 7,181 million from Rs. 5,904 million in 2006–07.

Revenues grew by 14% to Rs. 5,581 million in 2007–08 from Rs. 4,914 million in 2006–07 excluding the benefit of upsides from Authorized Generics & ondansetron exclusivity.

CPS REVENUE decreased by 27% to Rs. 4,818 million in 2007–08 from Rs. 6,600 million in 2006–07.

CONSOLIDATED REVENUES
PROFIT AFTER TAX
REVENUE MIX

ANDAs, DMFs, PRODUCT REGISTRATION AND NCEs

ANDAs IN U.S.
In 2007–08, Company filed 19 ANDAs in US including 10 Para IV filings. These ANDAs address innovator revenues of about U.S.$. 7.9 billion (IMS MAT, December 2007). Dr. Reddy‘s has filed1 22 cumulative ANDAs as of 31March 2008.

HIGHEST NUMBER OF APPROVALS FOR ANDA FILINGS
2007–08 also saw the highest number of approvals for the Company’s ANDA filings: 13 final approvals from the US and 4 from Canada, in addition to 7 tentative approvals from the US. As of 31 March 2008, the Company’s US Generic pipeline comprises 70 ANDAs pending with the USFDA, including 10 tentative approvals.

DMFs
Regarding APIs, the Company filed 54 DMFs in 2007–08. Of these, 23 were filed in US, 9 in Canada, 13 in Europe and 9 in other countries. As on 31 March 2008, the Company has made cumulative filings of 281 DMFs, with 127 in the US.

FORMULATIONS
In Branded Formulations, a total of 307 dossiers have been filed for product registrations in various countries.

NEW CHEMICAL ENTITIES (NCEs)
As on 31 March 2008, Dr. Reddy’s had three molecules or New Chemical Entities (NCEs), of which two are in clinical development and one is in the pre-clinical stage.