Dr Reddy’s Q1FY24 profit jumped 18 per cent to Rs 1,402.5 crore from Rs Rs 1,187.6 crore PAT in Q1FY23. Sequentially the profit jumped 46 per cent from Rs 959.2 crore in Q4. Higher gRevlimid sales and Mayne consolidation helped profitability for the pharma major.
Dr Reddy’s also reported healthy revenue growth of 29 per cent YoY to Rs 6,738.4 crore from Rs 5,215.40 crore in the same quarter last year. This is well above street estimates and was largely on account of higher generic sales in the US. The US revenue came in at $389 million.
The pharma company’s domestic business adjusted for divestment and NLEM price impact grew in high single digit. PSAI sales declined by 5 per cent YoY and revenue from the EU increased 22 per cent YoY while Russia sales grew by 75 per cent YoY.
Commenting on the results, Co-Chairman & MD, G V Prasad said: ‘We witnessed robust margin expansion in Q1FY24 driven by market share gains & new product momentum in our US generics business and superior performance in Russia. We are on track in executing our strategy, delivering growth while continuing to invest in future growth drivers and innovation to create sustainable value.”
Speaking at the earnings call, the management guided that gRevlimid will continue to remain robust in FY24 and expect US sales to grow in double digit despite high base. It also guided for 25-30 new launches in FY24. In Q1, the company launched six new products.
Back home, the management is confident of a steady show and expects to beat the IPM growth going ahead. It will also continue to explore inorganic route to strengthen its portfolio. Moreover, the company expects growth to accelerate in China and sales to double over the next 2 years.
Onto the key initiatives undertaken in Research & Development, nearly 20-25 per cent of Dr Reddy’s R&D spend is towards biosimilarity. The management expects the first wave of launches from FY27.