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Dr Reddy’s Laboratories Ltd’s consolidated net profit increased 44 per cent to ₹434 crore in the fourth quarter ended March 31, 2019, as against ₹302 crore in the corresponding quarter of the previous year.
The total revenue of the Hyderabad-based company went up 14 per cent to ₹4,016 crore (₹3,535 crore).
Announcing the results at a press conference here on Friday, Saumen Chakraborti, Chief Financial Officer, Dr Reddy’s, said the proceeds from divestment, the benefit of reduction in tax rate from 19.5 per cent in the fourth quarter of FY18 to 16.4 per cent in the corresponding quarter of FY19 and the general performance of the company, among others, drove the growth. Derma brands sale contributed ₹181 crore to the company.
Annual profit soars 92%
For the full-year, the net profit increased 92 per cent to ₹1,880 crore as against ₹980 crore in the previous year. Total revenue increased eight per cent to ₹15,385 crore.
Emerging markets and India brought in good tidings for the company during the year. In the global generics segment, Indian sales drove overall growth at 8 per cent while revenues from North America remained flat on account of price erosion.
Income from the emerging markets surged 28 per cent to ₹2,890 crore, driven by a 21 per cent growth in the Russian markets.
There was a reduction in research and development (R&D) expenditure and capex. R&D expenses came down to ₹1,561 crore from ₹1,826 crore. The capex fell to ₹696 crore (₹925 crore).
Revenue from India was ₹2,620 crore, a 12 per cent growth driven by the expansion of the base business and new launches. Price erosion, however, brought down revenue from Europe by 4 per cent at ₹790 crore.
Focus on innovation
Terming FY19 as a ‘good year’ with significant turnaround in the financial performance and steady progress on the quality front, GV Prasad, CEO and Co-chairman, said going forward, the focus will be on innovation and building a product pipeline.
The company filed 20 Abbreviated New Drug Applications (ANDA) during FY19 and had pending approvals for 110 with the USFDA.
The board of directors recommended a final dividend of ₹20 per equity share of ₹5 face value for the financial year 2018-19.
The company’s scrip lost 2.01 per cent on the BSE to to end at ₹2,748 on Friday.
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