Dr. Reddy’s labs on Wednesday announced the its consolidated financial results for the quarter ended December 31, 2022. The company announced that its Profit after Tax (PAT) was up by 77 per cent at Rs 1,247.1 crore as against Rs 706.5 crore in the same quarter a year ago.
Meanwhile, Revenues during the quarter were up by 27 per cent to Rs 6,770 crore compared to Rs 5,319.7 crore in the third quarter of FY ’22, Dr. Reddy’s labs stated on Wednesday.
In the India business, revenue was at Rs.11.3 billion. The Year-on-year growth of 10%, driven by increase in sales prices and new product launches, partly offset by reduction in volumes for certain products.
During the announcement, Parag Agarwal, Chief Financial Officer, Dr. Reddy’s Laboratories said their recent acquisition of Sacubitril/valsartan combination from Novartis, marketed as Cidmus is becoming number one in heart failure treatment. He also said that after the Novartis’ patent expiry it will be more affordable.
On the impact of Russia-Ukraine crisis, MV Ramana, CEO, Branded Markets (India & Emerging Markets, Dr. Reddy’s Laboratories told Financial Express.com: “In terms of Russia and Ukraine, we continue to work in both of these markets. As a pharma company we continue to ensure the availability of the products and as you would see in Q3, both in terms of base business as well as the business that goes through the tenders, the biosimilars have done well and it has shown in terms of the numbers. Ukraine, except in some of the areas which are closer or in conflict zone. In rest of the territories we continue to do the business as usual.”
In Global Generics, Dr. Reddy’s reported year-on-year growth of 33% and sequential quarter growth of 6% was primarily driven by new product launches, increase in volumes of our base business and favorable forex movement, offset partially due to price erosion in our generic markets.
Erez Israeli, Chief Executive Officer, Dr. Reddy’s Laboratories told Financial Express.com that COVID-19 has no impact in this quarter. He also said the they have plans to look forward to M&As in the upcoming financial year.
“We will continue to launch new products, increasing market share and enhance the productivity of the entire product chain,” Israeli told Financial Express.com.
In the North America, revenue was at Rs. 30.6 billion. The Year-on-year growth of 64%, driven by new products launches, increase in volumes and a favorable forex movement, which was partly offset by price erosion.
“Our strong financial performance was supported by growth in the US and the Russia markets. We continue to strengthen our development pipeline to reach more patients globally,” G V Prasad, Co-chairman & MD, said in a statement.
Revenues from Emerging Markets at Rs. 13.1 billion. Year-on-year growth of 14% and sequential quarter growth of 7 percent, it said.
Erez Israeli, Chief Executive Officer, Dr. Reddy’s laboratories told Financial Express.com that there has been negligible impact of COVID-19 sales in the quarter.