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Sunday, September 5, 2010

Copyrighted earnings call transcripts, IFRS based calls/reporting etc..the strange case of DRL.

When I opened the 1Q'10 earnings call transcript, what struck me was the clear message that the transcript belongs to the company and cannot be quoted without attribution. I know that pharma companies thrive on IR but this seems a bit too far. "Please note that today’s call is copyrighted material of Dr. Reddy’s and cannot be rebroadcast or attributed in press or media outlets without the company’s expressed written consent". Does this not seem too extreme?

What really impressed me though was the explanation of high growth in Russia. "The market growth for the same period is at 21% in value terms and 13% in volume terms. We would like you to bear in mind that this high growth was witnessed across all companies in the industry largely due to restocking of
inventories by trade after the uncertainties related to reference pricing implementation got over"

Companies are quick to explain adverse factors but very few explain external factors for growth which DRM has done.

Another interesting thing is that they already were basing conference calls on IFRS numbers. After SEBI permitted Indian companies to report in IFRS other than Indian GAAP, DRL availed that option. An instance of early IFRS adoption

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