Dr Reddy’s net profit up 44 per cent in Q4

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Published: May 18, 2019 12:57:34 AM

On a sequential basis, the profit was down 10%. However, with the improved performance in the domestic and emerging markets, revenues for the quarter are up by 14% at Rs 4,016.60 crore from Rs 3,534.90 crore a year ago

Dr Reddy's net profit up 44 per cent in Q4Dr Reddy?s net profit up 44 per cent in Q4

Pharma major Dr Reddy’s Laboratories has reported a 44% increase in its consolidated net profit at Rs 434.4 crore for Q4FY19 against Rs 302.20 crore a year ago, following a reduction in the tax structure in the US market. On a sequential basis, the profit was down 10%. However, with the improved performance in the domestic and emerging markets, revenues for the quarter are up by 14% at Rs 4,016.60 crore from Rs 3,534.90 crore a year ago.

The Ebitda margin stood at 22% against 22.5% in the December quarter and 16.3% a year ago.

Gross profit margin came in at 52.4%. On a sequential basis, it was down 150 basis points, primarily on account of adverse forex rate, change in the business mix, higher manufacturing overheads due to certain one-off charges and overhead impact on inventory movement.

The margin was down 100 basis points on a yearly basis on account of price erosion, partially offset by new launches and favourable forex rates. The decline in gross margin was partially offset due to revenue recognition on derma proprietary products.

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“It has been a good year with a significant turnaround in the financial performance and steady progress on the quality front. Looking ahead, we will focus on profitable growth, continue the emphasis on operational excellence and drive innovation to deliver value to patients and healthcare systems worldwide,” GV Prasad, CEO and co-chairman, said.

For full year FY19, PAT stood at `1,880 crore while revenues stood at `15,385 crore. Revenues from the global generics segment was reported at `3,038 crore — a year-on-year growth of 9% over the same quarter last year — primarily driven by contributions from emerging markets and Europe.

A segmental breakup of the revenues point out that revenues from North America for the year at `5,996 crore remained flat on a y-o-y basis. It grew by 3% to `1,496 crore against `1,449 crore in Q4FY18.

The year was benefited by new launches, market share gains for existing products and a favourable forex rate, which was offset by price erosion in some of its key molecules.

During this quarter, the company launched five new products. Of which, major ones being Propofol injection and Tadalafil (Adcirca and Cialis). As of March 31, 2019, cumulatively 110 generic filings are pending for approval with the USFDA which include 107 ANDAs and three NDAs under 505(b)(2) route. Of these, 107 ANDAs, 60 are Para IVs out of which we believe 34 have a ‘First to File’ status.

Revenues from India at `2,618 crore, a y-o-y growth of 12%, with a growth in base business and new product launches. Revenues for Q4 stood at `650 crore, a y-o-y growth of 6%. Revenues from emerging markets for the year stood at `2,888 crore, a y-o-y growth of 28%. The growth was majorly driven by scale up of Nasivin launched during FY18 and improvement in base business, partially offset by adverse exchange rate movement.

Revenue from pharmaceutical services and active ingredients (PSAI) was at `676.50 crore, a growth of 8%. The growth was driven by sales from key molecules and favourable forex. During the quarter, the company has filed four DMFs in the US.

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