Dr Reddy’s Q1 result: Net profit rises 45% YoY to Rs 662.8cr led by one-off gain

Dr-Reddy’s

Dr Reddy’s Laboratories on June 29 reported a net profit of Rs 662.8 crore in the quarter-ended June 31, a jump of 45 percent year-on-year basis, led by a one-time gain.

The net profit increase is due to a one-off receipt of Rs 350 crore from Celgene, pursuant to settlement agreement related to Revlimid brand capsules in Canada.

Revenues grew three percent YoY at Rs 3,843.4 crore.

“This quarter we grew most of our key markets and hope to continue this momentum with a sharper focus on performance,” GV Prasad, Co-chairman and CEO, DRL, said. “We will continue our journey of operational excellence, cost leadership and innovation across our businesses,” Prasad added.

Global generics revenue, which contributed little over 80 percent to total income, grew eight percent to Rs 3,298.2 crore.

North America, which is largely the US generics business, grew three percent at Rs 1,632.2 crore.

The company said growth was led by contribution from new products and increase in volumes, but was partly offset by price erosion and adverse foreign exchange movement.

The company launched five new products Daptomycin, Testosterone gel, Tobramycin, Vitamin K and OTC calcium carbonate, and re-launched lsotretinoin during the quarter under review.

Revenue from emerging markets grew 10 percent to Rs 730 crore, with much of that accruing from Russia (five percent).

India business grew 15 percent to Rs 700 crore driven by volume traction and improved realisations in base business and new product launches.

Sales from Europe rose 19 percent to Rs 240 crore primarily on account of new products and volume traction due to improvement in supplies.

Pharmaceutical Services and Active Ingredients (PSAI) revenues dropped 16 percent to Rs 450 crore due to decline in sales volume of certain products.
Sales in its proprietary products division fell 61 percent to Rs 28 crore as the the company divested its key derma products.

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