Buoyed by higher sale of generics and new product launches, Dr Reddy’s Laboratories (DRL) has reported a consolidated net profit of R519 crore for Q4, an increase of 8% from R482 crore a year earlier. The consolidated net sales improved by 11.2% to R3,870 crore.
GV Prasad, co-chairman and CEO, said that the company has crossed $1-billion sales in the US with three new drug application (NDA) filings for proprietary products. “Going by product filings, we hope to see a double-digit growth going forward, if the regulatory approvals come on time. We are also seeing a turnaround in the European markets and it is slowly becoming profitable due to product launches,’’ he added.
While global generics sales improved by 13% to R3,099 crore in Q4 on a year-on-year basis, the pharmaceutical services and active ingredients (PSAI) sales improved by 12% to R742 crore. For the full year ended March, DRL’s consolidated net sales increased by 12% to R14,819 crore. The net profit for FY15 improved by 3% to R2,218 crore.
Sales from global generics for the full year increased by 14.6% to R12,056 crore, from R10,516 crore in the previous fiscal. While North America contributed 53.7% of total generic sales at R6,472 crore, sales in Europe increased by 3% to R719 crore. Sales in the domestic market went up by 14% to R1,787 crore, driven by continued focus on product launches and prescription growth.
Revenues fell in Russia and other CIS countries by 10.7% to R1,771 crore, from R1,982 crore, as the rouble depreciated by 22% y-o-y which impacted sales. “Currency depreciation and macro-economic uncertainty had an impact on sales in Russia and Venezuala,’’ Saumen Chakraborty, president and CFO, said. It has recorded a forex loss of R84 crore on certain net monetary assets in Venezuala.
On the operating front, ebitda margins came in at 20.8% in Q4 compared to 22.8% a year earlier. The dip in ebitda came on back of a 29% y-o-y rise in R&D expenses.
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