Dr Reddy's Q1 net up 45% to Rs 663 crores on other income

Hyderabad: Led by higher other income and improved sales in all key markets, city-based Dr Reddy's Laboratories' net profit jumped 45 per cent year-on-year to Rs 663 crore in the quarter ended June. Profit was aided by higher other income following a settlement of Rs 345.7 crore with US drug maker Celegen Corp.

The company reported a net profit of Rs 456.1 crore in the corresponding period of 2018-19. Revenues during the period rose to Rs 3,843.5 crore as compared with Rs 3,720.7 crore in the year-ago period.

"This quarter we grew in most of our key markets and hope to continue this momentum with a sharper focus on performance," Dr Reddy's Laboratories Chief Executive Officer (CEO) and Co-Chairman G V Prasad said.

The company said that with effect from August 1, Erez Israeli will be elevated as the CEO of the company. Prasad will continue as the co-chairman and managing director, and Israeli will continue to report to him, it added.

"Since joining the company as the chief operating officer in April 2018, Israeli has spearheaded the transformation agenda of the organisation by ensuring clear focus and strategy setting foundations for a sustainable financial growth and leading business delivery.

His appointment as the CEO will help propel the organisation's growth agenda forward," Prasad said.

Revenues from global generics segment stood at Rs 3,300 crore registering a Y-o-Y growth of 8 per cent, primarily driven by emerging markets, India and Europe.

Revenues from North America at Rs 1,630 crore recorded a Y-O-Y growth of 3 per cent. Sequential growth of 9 per cent is driven by contribution from new products and increase in volumes, partly offset by price erosion coupled with adverse foreign exchange movement.

"We launched five new products (Daptomycin, Testosterone gel, Tobramycin, Vitamin K & OTC calcium carbonate) and re-launched Isotretinoin during the quarter," said the company.

As of June 30, 2019, cumulatively 107 generic filings are pending for approval with the USFDA (104 ANDAs and 3 NDAs under 505(b)(2) route).

Of these 104 ANDAs, 58 are Para IVs out of which we believe 34 have 'First to File' status, said the company adding "Revenues from emerging markets at Rs 7.3 billion registered a growth of 10 per cent."

The company recorded a Y-o-Y growth of 5 per cent in Russia registering revenues to the tune of Rs 4,000 crore primarily driven by new launches and better realisations in some of the key molecules.

Revenues from other CIS countries and Romania market stood at Rs 1,200 crore with a growth of two per cent.

Revenues from Rest of World (RoW) territories was at Rs 2,100 crore registering a growth of 27 per cent, primarily driven by new products, traction in new markets and volume traction in base business.

The company witnessed a Y-o-Y growth of 15 per cent in the Indian market driven by volume traction and improved realisations in base business and new product launches.