Pharma major Dr Reddy's Laboratories on July 26 reported an 18.1 percent rise in net profit at Rs 1,402.5 crore for the quarter that ended June 30, 2023, despite a high base of Rs 1,187.6 crore during the same period a year ago.
The company had a one-time gain of $72 million in the base quarter that it had received from British drugmaker Indivor as a settlement for a patent litigation for the generic drug Suboxone.
Moreover, the net profit also topped the Street’s estimate of Rs 944.1 crore.
Revenue for the drugmaker rose 29.2 percent to Rs 6,738.4 crore as against Rs 5,215.40 crore in the year-ago period. The Street had pegged revenue for the company at Rs 6,458 crore for the quarter under review.
The company reported an EBITDA of Rs 2,137.2 crore for the quarter as against Rs 1,779 crore in the previous corresponding quarter. EBITDA margin came at 31.7 percent for April-June, against 34.1 percent in the year-ago period.
Expenses on research and development (R&D) was Rs 498.4 crore, which was 7.4 percent of revenues in the quarter.
Revenue mix
North America continued to be the largest contributor to the company’s revenues with 47 percent share and was followed by emerging markets and India (17 percent share each) and Europe at 8 percent of the total revenue.
The North-American market posted a revenue of Rs 3,197.8 crore, reflecting growth of 79 percent year-on-year. The growth was due to growth was primarily on account of new product launches, continued momentum in existing products, favorable forex rates movement, partly offset by price erosion, according to the company.
The Indian market posted a revenue of Rs 1,148.2 crore, reflecting a fall of 14 percent year-on-year.
Pharmaceutical Services and Active Ingredients (PSAI) contributed to 10 percent of total revenue.
Revenue from emerging markets was at Rs 1,155.2 crore, up 28 percent Y-o-Y. Within emerging markets, the growth was driven by 75 percent growth in Russia, primarily driven by increase in volumes of existing products.
Shares of the company closed at Rs 5475.35, up 0.92 percent, on NSE.
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