Dr Reddy’s Labs on July 28 reported a 108 percent growth in its consolidated net profit at Rs 1,188 crore for the first quarter of FY23 as against a profit of Rs 571 crore registered in the year-ago period. On a sequential basis, the profit increased multifold from Rs 87.5 crore logged during the January-March period.
During the previous quarter, the company had an impairment charge of Rs 751.5 crore, adjusting for which the profit for the previous quarter would have been Rs 839 crore.
Consolidated revenues for the pharmaceutical major rose 6 percent on-year to Rs 5,215 crore as compared to a revenue of Rs 4,919 crore registered in the year-ago quarter. On a sequential basis, the revenue is marginally lower by 4 percent from the revenue of Rs 5,437 crore recorded in the previous quarter.
“Our underlying business revenues adjusted for covid products contribution during last year have grown well”, said GV Prasad, Co-Chairman & MD while commenting on the performance of the company. “The profits were aided by a few non-recurring incomes, offsetting the near-term headwinds but we continue to improve the health of our core businesses through productivity improvement and robust product pipelines.”
The EBITDA margin of the company zoomed to 34.1 percent from 20.7 percent a year ago. Research & Development (R&D) spend was lower at 8.3 percent of revenues compared to 9.2 percent in the year-ago quarter.
Revenues from the global generics segment were at Rs 4,430 crore. Year-on-year growth of 8 percent was driven by new product launches but the sequential decline of 4 percent was due to sales decline in North America, the company said.
Revenues from North America were at Rs 1,780 crore, growing 2 percent year-on-year. Revenues from Europe were at Rs 410 crore, marking year-on-year growth of 4 percent.
Revenues from India at Rs 1,330 crore, registering a year-on-year growth of 26 percent, driven by the divestment of a few non-core brands, revenue contribution from the products acquired/in-licensed from Novartis, growth in base business, and new products contribution.
“The growth was partially offset due to COVID product sales in Q1FY22 which was not there in the current quarter,” it said.
Revenue from Emerging Markets was at Rs 900 crore, registering a year-on-year decline of 1 percent and a sequential decline of 25 percent.
Dr Reddy’s closed Rs 26 lower at Rs 4,260 on July 28 at the National Stock Exchange. The stock is down 10 percent during the past one year and down 3 percent during the past one month.