Pharma major Dr Reddy’s Laboratories (DRL) posted a 13.67% rise in the consolidated net profit to Rs 625.65 crore in the June quarter, driven by healthy sales in North America. In the corresponding period last year, DRL had posted a net profit of Rs 550.39 crore.
Total income from sales and services grew 6.82% at Rs 3,757.76 crore in the quarter. Revenues from global generics stood at Rs 3,100 crore, up 8%, primarily driven by North America, Europe, Venezuela and India. Revenues from North America, which accounts for 82% of the total revenues from its generics business, grew 14% at Rs 1,852 crore.
This was due to sustained performance of injectable franchise and market share gains in key molecules. The company’s stock closed 5.23% higher at Rs 3,907.55 per share on BSE on Thursday.
The European market revenues reported a 43% growth at Rs 191 crore and India market revenues grew 19% at Rs 476 crore in sales primarily driven by continued focus on product launches and prescription growth. However, revenues from emerging markets slumped 20% to Rs 580 crore. Its Russia business was down by 45% at Rs 230 crore primarily dragged by macro-economic uncertainties and consequent depreciation of rouble.
“Our first quarter results, with year-on-year growth of 7% in top line and 14% in bottom line, reflect a healthy performance. We were able to achieve these results despite limited new launches and headwinds in the form of currency devaluation in key emerging markets. As we continue to further strengthen our product portfolio and drive new launches, we are well positioned for the next phase of our growth,” Dr Reddy’s co-chairman and CEO, GV Prasad said.