Dr Reddy’s Q2 PAT up 33% at `1,482 crore

We delivered another quarter of strong results with highest ever sales and profits, driven by market share gains & momentum in our US generics business and robust growth in Europe. We are continuing to strengthen our pipeline both organically and through business development to drive growth and create differentiation

Dr Reddy's Laboratories (DRL) on Friday reported a 33.02 per cent increase in consolidated profit after tax (PAT) at Rs 1,482.2 crore in July- September quarter (Q2) of financial year 2023-24 led by the US generics market. The company had posted a consolidated PAT of Rs 1,114.2 crore in the same quarter a year ago.

The consolidated total revenue from operations surged up 9 per cent at Rs 6,902.6 crore in Q2 FY24, compared to Rs 6,331.8 crore in the year-ago period. DRL's total expenses in the September quarter were up 11.14 per cent to Rs 5,305.1 crore. Total income of DRL in the September quarter was at Rs 7,217.6 crore, up 13.25 per cent.

DRL Co-Chairman & Managing Director G V Prasad said, "We delivered another quarter of strong results with highest ever sales and profits, driven by market share gains & momentum in our US generics business and robust growth in Europe. We are continuing to strengthen our pipeline both organically and through business development to drive growth and create differentiation."

DRL's global generics posted a revenue grew up 9.14 per cent at Rs 6,113 crore in Q2 FY24, from the year-ago quarter, driven by North America, emerging markets and Europe. North America's revenue was at Rs 3,170 crore, a growth of 13 per cent, while that of Europe was at Rs 528.6 crore, with a growth of 26 per cent, the company said in a statement.

During the quarter, the DRL has launched four new products in the US. It has filed two new Abbreviated New Drug Applications (ANDAs) with the US Food and Drug Administration (USFDA). As on September 30, 2023, the company has cumulatively 79 generic filings pending for approval with the USFDA. Out of the pending 79 ANDAs, 20 have ‘First to File’ status.

In India, the DRL has seen 3 per cent at Rs 1,190 crore revenue growth in Q2 FY24. This growth was largely driven by pricing, new launches and partly offset by NLEM impact and muted demand due to weak acute season. Excluding NLEM, operational sales grew in mid-single digit.

Among emerging markets, its revenue decreased marginally of 1 per cent at Rs 1,220 crore in Q2 FY24. The revenue from Russia declined 3 per cent at Rs 580 crore in the quarter. In other CIS countries and Romania, the revenue grew 1 per cent at Rs 220 crore on account of price increases on certain products, favourable move from foreign exchange which was partly offset by decline in base business volumes.

The revenue from Pharmaceutical Services and Active Ingredients (PSAI) increased 16.95 per cent at Rs 962.5 crore in Q2 FY24, as against Rs 823 crore, a year before.