Backed by substantial rise in other income, Dr Reddy’s Laboratories Ltd on Thursday said its consolidated profit after tax for the quarter ended June 30 was up by 108 per cent at Rs 1187.6 crore against Rs 570.8 crore in the same quarter a year ago.
Revenues during the quarter under discussion were up by six per cent to Rs 5215.4 crore compared to Rs 4,919.4 crore in the first quarter of FY22.
Other operating income was at Rs 600 crore compared to Rs 50 crore in Ql FY22.
The increase was mainly on account of recognition of income from settlement agreement, with Indivior Inc, Indivior UK Limited and Aquestive Therapeutics, Inc, on its generic version of opioid addiction treatment drug Suboxone, Chief Financial officer Dr Reddy’s Parag Agarwal said.
“Basically the results are impacted in a positive way by two things which is Suboxone settlement which is another operating income and also the brand divestments. Brand divestments have recorded in sales and growth margin. These are the two major upsides that are benefitting,” Agarwal said.
He further said the company has received USD 50 million out of the total USD 72 million towards Suboxone settlement.
DR Reddy’s CEO Erez Israeli the company is working on its COVID-19 vaccine Sputnik Light as a universal booster dose.
“We are in the last stages of finalizing the trial in India to qualify Sputnik as a booster for other vaccines in India. Once the trials are completed and good results are achieved then we can apply for a license in India. Only after getting the license in India then we can go to other countries,” Israeli said.
The company has launched six new drugs in the US market and one in Canada during the last quarter. Agarwal said the drug maker has plans to launch about 25 new products in the North American market in the coming quarters.
Commenting on the results, Co-Chairman and MD, G V Prasad in a press release said, “Our underlying business revenues adjusted for COVID-19 products contribution during last year have grown well. The profits were aided by a few non-recurring incomes, offsetting the near term headwinds. We continue to improve the health of our core businesses through productivity improvement and robust product pipelines”.
Revenues from North America Global Generics during the quarter stood at Rs 1,780 crore, a year-on-year growth of 2 per cent, driven by launch of new products and favorable forex rates, which was offset by price erosion in some of the key molecules.
Revenues from Europe were at Rs 410 crore while it was Rs 1330 crore from India.
Revenues for Russia was at Rs 320 crore, a year-on-year decline of 9 per cent primarily due to channel inventory normalization post stocking up in Q4 FY22, which was partly offset with launch of new products.
Dr Reddy’s spent Rs 430 crore towards research and Development during the first quarter which is 8.3 per cent of the revenues.