US, India drive Dr Reddy’s growth in Q1

The pharma major posts `550 crore net profit, an increase of 52%; total revenues went up 24% to `3,517 crore

Hyderabad: Riding on the significant growth in global generics business, Dr Reddy's Laboratories Limited on Wednesday reported a 52.49 per cent rise in net profit at Rs 550.39 crore for the first quarter ended on June 30, 2014. The performance was in line with market expectations.

The city-based pharma major’s net was at Rs 360.93 crore in the corresponding three-month period a year ago.

The total revenues for the period went up 23.64 per cent to Rs 3,517.54 crore from Rs 2,844.92 crore a year ago. Global generics accounted for major chunk of the sales, contributing Rs 2,900 crore to the Dr Reddy’s kitty.

The generics business, driven by growth in North American market and some emerging markets including India, registered a year-on-year growth of 32 per cent. However, the US market continued its dominance by generating Rs 1,650 crore, an upswing of 51 per cent from the last fiscal. Revenues from India, at Rs 400 crore, recorded a year-on-year jump of 15 per cent thanks to a healthy volume expansion in the drug maker’s focus brands. In Russia, also a key emerging market for the company, the total revenues registered 18 per cent to Rs 420 crore, largely driven by higher volumes in the OTC (over-the-counter) segment and certain key products in prescription category. All the emerging markets accounted for Rs 710 crore in revenues, posting 19 per cent growth year-on-year.

Though Dr Reddy’s witnessed decline in revenues from the pharmaceutical services and API segments, it could make up for the loss from for the global generics as the latter’s contribution went up to 82 per cent from 77 per cent a year ago.