Pharmaceutical major Dr Reddy's Laboratories on July 27, announced a net profit of Rs 1,392 crore for the April-June period of FY25. The drugmaker's net profit in the year ago period was at Rs 1,402 crore.
Meanwhile, revenue grew around 14 percent to Rs 7,672.70 crore, up from Rs 6,738 crore recorded in the same quarter of the previous fiscal. With this, the company's topline as well as bottomline surpassed the Street's estimates of Rs 7,242 crore and Rs 1,351 crore, respectively.
A spike in the effective tax rate of 26 percent in Q1 of FY25 as compared to 24 percent in the base quarter kept net profit largely flattish on year. Coming to revenue, the company attributed its growth to the uptick in generics sales in North America as well as India.
Growth in global generics sales came at 15 percent on year, primarily volume led, aided by new launches and integration of recently in-licensed vaccine portfolio in India, partially offset by price erosion.
Despite that, the company's operating performance witnessed some contraction as EBITDA margin came at 28.2 percent, lower than the 29 percent reported in the same quarter last year. This was largely due to increased research and development expenses which made up 8.1 percent of the total revenue, up from 7.4 percent in the year ago period.
The R&D investments are focused towards biosimilars pipeline, development efforts across generics as well as novel oncology assets, which will support future growth.
North America
Revenues from the North America segment rose 20 percent on year largely on account of an increase in volumes of our base business, contribution from new launches, partly offset by price erosion. The North America segment makes up 50 percent on Dr Reddy's total revenue.
During the quarter, the drugmaker also launched 3 new products in the US, and filed one new Abbreviated New Drug Application (ANDA) with the US drug regulator.
Europe
The revenue from the Europe markets rose 4 percent on year driven by an improvement in base business volumes, new product launches, partly offset by price erosion. The drugmaker also launched 12 new products across various countries in the region.
India
Revenue in the India business grew 15 percent on year, aided by new product launches including the recently in-licensed vaccine portfolio.
During the quarter, Dr Reddy's also launched 13 new brands in the market, in addition to exclusive rights to promote and distribute Sanofi's vaccine brands.
Emerging Markets
Emerging Markets revenue rose 3 percent on year led by market share expansion and new product launches, that partly offset unfavorable forex and price erosion.
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