Dr Reddy’s Laboratories reports 13% decline in profit at Rs 579 crore in June quarter

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Published: July 30, 2020 3:00 AM

However, revenue for the quarter was up by 15% to Rs 4,417.5 crore against Rs 3,843.5 crore reported during last fiscal.

Revenues from global generics segment stood at Rs 3,507 crore, a year-on-year growth of 6%, driven primarily by Europe and Emerging Markets.Revenues from global generics segment stood at Rs 3,507 crore, a year-on-year growth of 6%, driven primarily by Europe and Emerging Markets.

Pharma major Dr Reddy’s Laboratories reported a 13% decline in its net profit at Rs 579.3 crore in the quarter ended June 30 against Rs 662.8 crore in the corresponding period a year ago. However, revenue for the quarter was up by 15% to Rs 4,417.5 crore against Rs 3,843.5 crore reported during last fiscal.

“While the sales volume was impacted in some of our markets due to lower prescriptions generated and fall in patient footfalls in pharmacies/clinics due to Covid-19, the pricing environment was relatively stable, new product launches continued and depreciation of rupee against the dollar and euro supported the business,” the company said in a statement.

“The current quarter’s financial performance has been strong across all parameters. I am glad that we have been able to serve our patients well and ensured continuity of business operations despite the challenging times. We have started integration of the acquired business from Wockhardt and executed two important licencing arrangements for treatment options for Covid-19. Currently, we are working towards bringing both these drugs to multiple markets,” GV Prasad, co-chairman & MD, said.

Revenues from global generics segment stood at Rs 3,507 crore, a year-on-year growth of 6%, driven primarily by Europe and Emerging Markets. This was offset partially by the decline in India. The overall growth was on account of volume traction in the base business, new product launches and aided by favourable forex rates, though offset partially due to price erosion. Sequentially, there was a decline of 4%, which is attributable to lower volumes across markets.

Revenue from North America, its biggest market, rose 6% to Rs 1,728 crore, driven by contribution from new products launch and aided by a favourable forex rate, which was partially offset by price erosion. Sequentially, there was a decline of 4% on account of lower sales of certain key molecules.

Revenues from India stood at Rs 630 crore with a y-o-y drop of 10% and sequential drop of 8%.

While Emerging Markets reported revenue of `800 crore, with a y-o-y growth of 9% and a sequential decline of 1%, revenues from Russia were at Rs 330 crore with a y-o-y decline of 17%. Revenues from Europe stood at Rs 360 crore with a y-o-y growth of 48%.

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