Dr Reddy’s Laboratories Q1 net profit jumps 108 per cent to Rs 1,188 crore
Hyderabad: Pharma major Dr Reddy’s Laboratories (DRL) reported a profit after tax of Rs 1,188 crore for the June quarter. This is an increase of Rs 108% from Rs 570.8 crore during the corresponding period last year. Its revenues during the June quarter were Rs 5,215 crore, up 6% from Rs 4,919 crore.
During the quarter, the company’s selling, general and administrative expenses stood at Rs 1,549 crore. Its research and development expenses were Rs 433 crore, which is about 8.3% of its revenues. The earnings before interest, taxes, depreciation and amortisation was Rs 1,779 crore (34% of revenues).
“Our underlying business revenues adjusted for Covid products contribution during last year have grown well. The profits were aided by a few non-recurring incomes, offsetting the near term headwinds (conditions that impede progress). We continue to improve the health of our core businesses through productivity improvement and robust product pipelines,” said GV Prasad, Co-Chairman and Managing Director of DRL.
Revenues from the Global Generics segment stood at Rs 4,432 core (up 8%). The growth was driven by new product launches across most of its businesses and divestment of a few non-core brands in India, partly offset by price erosion in generic markets, and a higher base due to Covid product sales in the previous year.
Within the generics segment, Rs 1,781 crore came from North America. It launched seven new products and filed three Abbreviated New Drug Applications (ANDAs). ANDA is an application for a US generic drug approval for an existing licensed medication or approved drug. As of June, cumulatively 86 generic filings are pending for approval with the USFDA.
Europe accounted for Rs 414 crore, Emerging Markets Rs 902 crore and India contributed Rs 1,333 crore. In India, the revenue growth was driven by divestment of a few non-core brands, revenue contribution from the products acquired / in-licensed from Novartis, growth in base business and new products contribution. The growth was partially offset due to Covid product sales in Q1 FY22 which was not there in the current quarter. It launched five new products during the quarter.
Company’s pharmaceutical services and active ingredients segment accounted for Rs 709 crore to the revenues.
