Dr Reddy’s churns out record numbers
Dr Reddy’s churns out record numbers. Beating market expectations, Dr Reddy’s Laboratories on Thursday reported record sales and net profit for the second quarter ended September 30, 2015.
Q2 net profit at `721.9 cr; revenue rises 11% to reach `3,989 cr
Hyderabad: Beating market expectations, Dr Reddy’s Laboratories on Thursday reported record sales and net profit for the second quarter ended September 30, 2015. The growth numbers were largely driven by robust upswing in Europe, North America and India.
The city-based pharma major posted a net profit of Rs 721.9 crore for the three-month period, clocking a growth of 26 per cent from Rs 574.1 crore in the corresponding period a year earlier. In the process, the company’s net crossed Rs 700 crore mark for the first time ever.
The total revenues rose 11 per cent to reach Rs 3,989 crore, the highest ever quarterly sales for the company, from Rs 3,587.9 crore a year ago. Global generic sales, at Rs 3,276.8 crore, rose by 15 per cent from Rs 2,860.6 crore in the second quarter of last fiscal. They accounted for 82 per cent of the company’s top line now against 80 per cent last year.
The sales of generic products in North America including the US rose by a significant 32 per cent to Rs 1,856.3 crore from Rs 1,403 crore last fiscal. The company posted robust upswing of 65 per cent in Europe where the generics sales reached Rs 212.4 crore from Rs 128.8 crore. In India, it registered 14 per cent upswing in generics sales at Rs 546.4 crore against Rs 479.9 crore in Q2FY15.
“We had robust sales growth across our markets of US, India and Europe, supported by new products that were launched in the last twelve months,” said G V Prasad, co-chairman and CEO, Dr Reddy’s.
However, the sales fell by 22 per cent in emerging markets which include Russia and Venezuela. The total sales in these markets stood at Rs 661.7 crore against Rs 848.9 crore last fiscal. In the PSAI space too, Dr Reddy’s saw seven per cent dip in sales to Rs 591.8 crore versus Rs 639.7 crore.
The company is expecting a little subdued numbers in the second half of the current fiscal as it reported robust numbers in the same period last fiscal. Meanwhile, the company is looking for meaningful acquisitions in emerging markets that will help it expedite its expansion in the respective markets. “We have identified some markets.
For example, we appointed our country heads in Columbia and Brazil which are markets of our choice. However, we have not specifically identified any acquisition targets,” Saumen Chakraborty, Chief Financial Officer, Dr Reddy’s, told media after announcing the results here.