Branded mkts shore up Dr Reddy’s bottom line
Remains focused on strengthening its core business, productivity
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Hyderabad: Dr Reddy’s Laboratories on Friday announced its financial results for the second quarter. The global pharma major posted a 14.5 per cent increase in its consolidated profit after tax (PAT) to Rs1,437 crore for the second quarter ended September 30, aided by robust sales in branded markets.
The city-based drug maker reported a PAT of Rs1,255 crore in the July-September quarter of the last financial year. Its revenue rose to Rs8,805 crore in the second quarter against Rs8,016 crore in the year-ago period, Dr Reddy’s Laboratories said in a regulatory filing.
“Growth in Q2 was driven by momentum in branded markets and steady contributions from the Nicotine Replacement Therapy (NRTJ) portfolio, which helped offset the decline in US Lenalidomide sales,” said GV Prasad, co-chairman and MD, Dr Reddy’s.
The company remains focused on strengthening its core business, advancing key pipeline assets, driving productivity and pursuing business development initiatives, Prasad added.
The drug maker noted that the growth during the second quarter was broad-based across key markets, except for North America Generics, which witnessed higher price erosion in select products and lower lenalidomide sales. North America sales stood at Rs3,241 crore, a year-on-year drop of 13 per cent compared to Rs 3,728 crore. Europe revenue increased to Rs1,376 crore compared to Rs577 crore in the year-ago period. India’s revenue gained 13 per cent to Rs1,578 crore for the July-September quarter. Emerging markets saw a revenue growth of 14 per cent to Rs1,655 crore in the second quarter.
Pharmaceutical Services and Active Ingredients (PSAI) business vertical reported a revenue of Rs945 crore against Rs 841 crore, a rise of 12 per cent. Dr Reddy’s shares on Friday ended 0.32 per cent up at Rs1,284 apiece on BSE.
