Dr. Reddy’s net surges 29% to ₹995 crore

Dr. Reddy’s Laboratories reported net profit rose 29% to ₹995.8 crore for September quarter on the back of good perfomance in India and emerging markets in the generics business segment, while new offerings helped partially offset the impact of accelerating price erosion in the key North America market.

The increase, compared to the ₹771.8 crore net profit in the year-earlier period, came on an 18% increase in the revenue from operations to ₹5,786.9 crore (₹4,910.9 crore), according to the results. Total income at ₹5,992.4 crore (₹4962.1 crore) was almost 21% higher.

Stating that the improvement in the financial performance across businesses was heartening, co-chairman and MD G.V. Prasad said, “While we continue to strengthen our core businesses of generics and APIs, we are also making investments in our long-term growth drivers and deeper innovation capabilities.”

In a virtual media interaction, CFO Parag Agarwal said that the company was able to overcome the twin challenges of acceleration in price erosion and increase in inputs costs to post a robust performance for the quarter. While global generics revenue increased to ₹4747.2 crore (₹3,988.2 crore), the PSAI (pharmaceutical services and active ingredients) segment revenue declined to ₹1,018.7 crore (₹1,035.5 crore) in the face of growing competition and increase in inputs costs, he said.

The growth was broad-based with COVID portfolio, which included Russian vaccine Sputnik V also making a good contribution, he said. Dr. Reddy’s would be looking at market expansion by sharpening focus on tier II and III cities in India and maintaining growth momentum in the emerging markets through offerings of more new products. Thus far it had unveiled 24 products and the plan was to take the number to 128 this year, he said.

Source: Read Full Article