Dr Reddy’s YoY Q1 net profit vaults 671per cent at Rs 456 crore

Dr Reddy’s YoY Q1 net profit vaults 671per cent at Rs 456 crore
Highlights

Dr Reddys Laboratories on Thursday posted 671 per cent yearonyear rise in net profit at Rs 45610 crore for the quarter ended June The pharmaceutical major had posted a net profit of Rs 5910 crore in the corresponding quarter last year

Hyderabad: Dr Reddy’s Laboratories on Thursday posted 671 per cent year-on-year rise in net profit at Rs 456.10 crore for the quarter ended June. The pharmaceutical major had posted a net profit of Rs 59.10 crore in the corresponding quarter last year.

The company’s revenues registered a 12 per cent and 5 per cent jump YoY and QoQ respectively with the gross margins ending up on the higher side with 55.7 per cent jump.

While the R&D expenses stood at Rs 416 crore (11.2 per cent of revenues), the profit before tax stood at Rs 501 crore, which is 13.5 per cent of the revenues.

Revenue from emerging markets, global generics, pharmaceutical services and APIs stood at Rs 660 crore (up 16 percent YoY), Rs 3,060 crore (up 12 percent YoY) and Rs 540 crore (up 16 percent YoY), respectively. Revenues from India grew by 30 per cent (YoY) at Rs 610 crore.

Speaking to the media, Dr Reddy's co-chairman and CEO GV Prasad said, “The rise in the net profit is mainly due to the launch of ‘gSuboxone’ (which is indicated for treatment of opioid dependence) in the US market, forex gains and operational efficiencies.”

However, Prasad admitted that the Suboxone verdict will have negative impact on the ongoing performance, at least for the next 3-4 quarters. “We are cautiously optimistic. While there is pricing pressure in the US market, there is also opportunity elsewhere and US."

On job cuts, Prasad said, “We let go 150-200 positions in the mid-management level as they have become redundant. It is an ongoing process. Big phase of cuts is over.”

As of June 30, cumulatively 112 generic filings are pending for approval with the USFDA {including three New Drug Applications (NDA).} Of the109 NDAs pending with the FDA, 61 are Para IVs out of which the company believes 30 have 'First to File status.’

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