Dr Reddy’s posts healthy Q1 net on Russian biz dose

Hyderabad Hyderabad-head quartered pharma major Dr Reddy’s Laboratories Ltd (DRL) reported 18 per cent increase in its profit after tax (PAT) at Rs1,402.50 crore in April-June quarter (Q1) of FY 2023-24 against Rs1,187.6 crore during the same quarter last fiscal. The revenues rose 29 per cent to Rs 6,738.40 crore in Q1 from Rs 5,215.40 crore in the corresponding quarter previous fiscal.

The company announced the financial results on Wednesday. “We delivered strong sales growth and witnessed robust margin expansion in Q1FY24 driven by market share gains and new product momentum in our US generics business and superior performance in Russia. We are on track in executing our strategy, delivering growth while continuing to invest in future growth drivers and innovation to create sustainable value,” GV Prasad, Co-Chairman & MD of DRL, said in a statement.

The Q1 revenues from global generics stood at Rs 6,008.30 crore a year-on-year growth of 36 per cent driven by North America, emerging markets and Europe. The improvement in gross margin (58.7 per cent) was primarily driven by favourable product mix and higher manufacturing leverage partly offset by benefitting from brand divestment income during the previous year and price erosion in certain products.

However, the revenues from Indian market declined 14 per cent to Rs 1,148.20 crore in Q1 FY24 from Rs 1,332.40 crore during a year-ago period. “Excluding brand divestment income, sales of divested portfolio from base and National List of Essential Medicines (NLEM) related price reduction impact. India business registered a high single digit growth. This growth was mainly on account of increase in base business volumes,” the company said.

“During the quarter, we filed four new Abbreviated New Drug Applications (ANDAs) with the US Food and Drug Administration (USFDA). Out of the pending 85 ANDAs, 43 are Para IVs, and we believe 17 have ‘First to File’ status,” it added.