DRL Q1 net profit dips slightly

Hyderabad: HYDERABAD-BASED global pharma major Dr Reddy's Laboratories Ltd (DRL) has reported a 1.5 per cent decline in its net profit at Rs 571 crore in the quarter (Q1) ended June 30 of this financial year from Rs 579 crore during the same quarter last fiscal. It attributes the dip in the profit to the erosion of some products in North American business and investments in emerging markets.

However, the company's revenues increased 11 per cent to Rs 4,919 crore in Q1 FY22 when compared to Rs 4,417 crore in the corresponding quarter previous year. Its revenues from India surged 69 per cent at Rs 1,060 crore during the review period, while the revenues from Europe and emerging markets grew 12 per cent and 14 per cent respectively. "The financial performance of the quarter has been driven by healthy sales growth. While we continue to sharpen execution in our core business, we are also conducting pilots in areas such as nutrition, direct-to-customer, and digital health and wellness, which can be future growth drivers," The company's Co-Chairman and MD, GV Prasad said in a statement. He was confident about improving the company's margins in the coming quarters consequent to the scaling up of new product launches and productivity. It has launched six new products during the quarter including Sputnik-V vaccine and 2-deoxy-D-glucose for Covid in Indian market. It also launched Curhealth, a nutritional health mix for building immunity.

During the same quarter, the company has launched six new products in the US market and two products in Canada. It has filed two new abbreviated new drug applications (ANDAs) during the quarter, and an overall 93 generic filings are pending for approval with the drug regulator USFDA. Out of these, the company leadership believes 24 have 'First to File' status.

Covid portfolio

The city-headquartered drug firm continues to play a big role in the fight against Covid-19 by acting proactively to bring multiple preventive and curative treatment options, including Sputnik V vaccine. Dr Reddy's CEO – Branded Markets (India and Emerging Markets) MV Ramana said, "We had a full rollout of Sputnik V vaccine in Indian market during this month and we are planning to scale up in August."