Dr Reddy’s Q2 net profit beats estimates, up 12% | The Financial Express

Dr Reddy’s Q2 net profit beats estimates, up 12%

The company’s revenue went up 9% to Rs 6,306 crore as against Rs 5,763 crore while it reported an Ebitda of Rs 1,932 crore.

Dr Reddy’s Q2 net profit beats estimates, up 12%
Revenues from global generics at Rs 55.9 billion saw a growth of 18% and sequential quarter growth of 26% driven by launch of the Lenalidomide capsules in the US market.

Beating the street estimates, Hyderabad-headquartered pharma major Dr Reddy’s Laboratories (DRL) on Friday reported a 12% increase in its consolidated net profit to Rs 1,113 crore for the second quarter of FY23, from Rs 992 crore in the corresponding quarter of last fiscal, driven by a favourable product mix, new launches and cost control.

The company’s revenue went up 9% to Rs 6,306 crore as against Rs 5,763 crore while it reported an Ebitda of Rs 1,932 crore. DRL’s overall increase in revenue was supported by the revenue growth from North America.

DRL co-chairman & MD, G V Prasad said: “We are pleased with the strong financial performance in the current quarter, driven by the launch of Lenalidomide capsules in the US market. Our focus is to build a robust pipeline with products that improve affordability and access to patients globally. We continue to progress well in our productivity, innovation and sustainability agenda.”

Revenues from global generics at Rs 55.9 billion saw a growth of 18% and sequential quarter growth of 26% driven by launch of the Lenalidomide capsules in the US market.

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The company’s revenues from North America were Rs 28 billion, marking an year-on-year growth of 48% and sequential quarter growth of 5 7%, driven by launch and scale up of new products and favorable movement of forex rates, which was partly offset by price erosion in some of its key molecules.

Europe revenues of the company stood at Rs 4.2 billion, with year-on-year growth of 2% and sequential quarter growth of 1 %, driven by volume traction in base business and new product launches across its markets. However, it was partially offset by price erosion in some molecules and the impact of adverse forex rates during the quarter.

Revenues from India were at Rs 11.5 billion, logging an year-on-year growth of flat 1% impacted due to higher base of Ql FY22, which included contribution from Covid product sales, said a DRL statement.

DRL notched up revenues of Rs 5.9 billion from Russia, marking an year-on-year growth of 4% on account of new product launches, increase in sales prices and favourable movement of forex rates, partly offset by reduction in base volumes.

Revenues from other CIS countries and Romania were at Rs 2.2 billion, a year-on-year decline of 1 %.

Revenues from rest of world markets were at Rs 4.1 billion, an year-on-year decline of 18% on account of reduction in the Covid-19 product sales in the current quarter versus last year and decrease in sales prices, partly offset by new launches.

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First published on: 29-10-2022 at 03:30 IST