Dr Reddy’s Q1 net profit falls 1.5pc to Rs 570.8 crore
The company's revenues increased by 11.4 per cent year-on-year to Rs 4,919.4 crore in Q1FY22 from Rs 4,728.4 crore in Q1FY21.
Hyderabad: Hyderabad-based pharmaceuticals company Dr Reddy’s Laboratories has reported a consolidated net profit of Rs 570.8 crore for the quarter ended June 30, 2021, representing a 1.5 per cent dip from Rs 579.3 crore during the corresponding period of the previous year, primarily impacted by lower operating profit and income.
The company’s revenues increased by 11.4 per cent year-on-year to Rs 4,919.4 crore in Q1FY22 from Rs 4,728.4 crore in Q1FY21.
“The financial performance of the quarter has been driven by healthy sales growth. I am confident about improving our margins in the upcoming quarters which will be led by the scale up of recent launches, new product launches and productivity. While we continue to sharpen execution in our core business, we are also conducting pilots in areas such as nutrition, direct-to-customer, and digital health & wellness, which can be future growth drivers,” said GV Prasad, co-chairman & MD, Dr Reddy’s.
Global generics business saw a growth of 17 per cent year-on-year at Rs 4,111.3 crore in Q1FY22 up from Rs 3,507.5 crore in Q1FY21, while the Europe showed a growth of 12 per cent at Rs 399.4 crore in Q1FY22 from Rs 355.1 crore and the emerging markets showed a growth of 14 per cent to Rs 912.9 crore from Rs 798.4 crore.
“The overall growth in global generics was on account of new product launches and volume traction in the base business, partly offset by price erosion in some of our products and adverse forex rates,” Dr Reddy’s Labs said.
The pharmaceutical services and active ingredients segment saw a 12 per cent year-on-year decline at Rs 754 crore during the quarter ended June 2021 from Rs 855.3 crore in the corresponding period, last year.
India’s revenue growth was primarily driven by an increase in sales volumes of existing products, led by the sale of Covid drugs due to the severe second wave in India, the company added. The North American business was driven by the launch of new products and an increase in volumes of certain products, which was offset by price erosion in some molecules and adverse forex rates.
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