Dr Reddy’s consolidated profit more than doubles to Rs 1093 crore

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Published: November 2, 2019 3:27:39 AM

The India business grew 9% y-o-y and 8% sequentially to Rs 750 crore in the September quarter.

dr reddy, dr reddy labDuring the quarter under review, the company posted a tax benefit of Rs 330 crore due to recognition of deferred tax assets of Rs 520 crore, primarily related to the MAT credit.

Dr Reddy’s Laboratories on Friday posted a two-fold jump in consolidated net profit to Rs 1,092.50 crore against Rs 503.80 crore for the second quarter ended September 2019, following a one-time tax gain and rise in operating income. Total revenues stood at Rs 4,800.9 crore against Rs 3,797.8 crore in the year-ago period, an increase of 26.41%.

During the quarter under review, the company posted a tax benefit of Rs 330 crore due to recognition of deferred tax assets of Rs 520 crore, primarily related to the MAT credit. Commenting on the results, co-chairman and MD, GV Prasad said: “I am pleased with our performance across the businesses and strong cash generation during the quarter. We are progressing well in execution of our strategy and in our transformation journey on quality and efficiency”.

Giving a breakup of the segment, revenues from global generics posted Rs 3,280 crore, up 7% from the same quarter last fiscal, primarily driven by Europe, emerging markets and India. Revenues from North America were flat at Rs 1,430 crore, while that from Europe were at Rs 280 crore. The North America market registered `1,430 crore flat revenues year on year and a sequential decline of 13% on account of price erosion and lower volumes. Further impact on account of voluntary recall of Ranitidine and temporary disruption in supplies due to logistics issues faced during this quarter.

The company launched eight new products during the quarter, which are Carboprost, Ramelteon, Fosaprepitant, Pregabalin, Vigabatrin, Docetaxel 160mg, Bupropion SR and OTC Guaif /Psuedo.

As of 30th September 2019, cumulatively 99 generic filings are pending for approval with the USFDA of which 96 ANDAs and 3 NDAs under 505(b)(2) route. Of these 96 ANDAs, 55 are Para IVs out of which the company believes 31 have ‘First to File’ status.

The India business grew 9% y-o-y and 8% sequentially to Rs 750 crore in the September quarter. The y-o-y growth was driven by new products, improved realisations and volume traction in base business, the company said. The Pharmaceutical Services and Active Ingredients segment revenues were at `710 crore, up 18%. The proprietary products segment clocked a revenue of Rs 740 crore, including Rs 720 crore towards licence fee for selling the US and select territory rights for two of neurology brands, namely Zembrance Symtouch (sumatriptan injection) 3 mg and Tosymratm (sumatriptan nasal spray) 10 mg, to Upsher-Smith Laboratories, LLC.

In a separate filing, the company said that its board has granted 3,116 Indian stock options, exercisable at par value of `5 under ESOP, 2002 and 4,140 American Depository Receipts (ADR) stock options, exercisable at par value of `5 under ADR Stock Option Scheme, 2007.

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