Dr Reddys Labs Q1 net surges 52% to R550 cr

Written by fe Bureau | Hyderabad | Updated: Jul 31 2014, 08:26am hrs
Dr Reddys Laboratories on Wednesday reported a consolidated net profit of R550 crore for Q1FY15, up 52% y-o-y. Total revenue increased 24% y-o-y to R3,518 crore, driven by 32% growth at the global generics business and 51% growth in the US.

The company benefited from several launches of limited competition products. It filed nine product filings in the US and 70 Abbreviated New Drug Applications (ANDAs) pending approval with the USFDA. During the quarter, the company launched 25 new generic products, filed 27 new product applications and 20 drug master files globally.

We see healthy product filings in Q1, much better than Q1 of last year and we hope there is a positive outcome from these filings. We have also increased our R&D expenditure, which is in line with our planned scale-up development activities,'' Saumen Chakraborty, president and CFO, said.

R&D expenses increased from 9% in FY14 to 11% in Q1FY15 at R388 crore. He said the net debt-equity ratio stands below 10%.

Giving a breakup, he said revenue from North America, which contributes 57% of global generic sales, grew 51% to R1,647 crore. Sales growth in North America was due to sustained performance from molecules with limited competition namely, decitabine, azacitadine, zoledronic acid injection, donepezil 23mg and divalproex and market share expansion of some key molecules, he said.

Sales in India grew 15% to R400 crore while the Pharmaceutical Services and Active Ingredients business reported a decline of 6% to R554 crore due to deferment of some customer orders.

Shares of Dr Reddys inched 2.21% higher to R2,822 from their previous close of R2,766 on the BSE.