Pharma major Dr Reddy’s Laboratories’ net profit declined 9 per cent at ₹1,341 crore in the second quarter ended September 30, 2024, from ₹1,480 crore in the same quarter last fiscal.
Revenue of the Hyderabad-based company, however, increased 17 per cent at ₹8,016 crore in the quarter under review as against ₹6,880 crore in the year-ago period.
“All markets had a healthy growth during the quarter. Both sales and profit before tax are the highest-ever in the quarter,’‘ MV Narasimham, Chief Financial officer, Dr Reddy”s told newspersons on Tuesday.
Profit would have been higher except for some exceptional items, including impairment including ₹48 crore, due to withdrawal of indexation on land.
The growth in global generics business was at 17 per cent driven by improved sales volumes and new product launches. North American business too registered 17 per cent growth largely on account of increase in sales volumes, partly offset by price erosion. Dr Reddy’s launched four new products in the US during the quarter.
Revenues from Europe and emerging markets grew 9 per cent and 20 per cent respectively. While sales in Russia increased 9 per cent largely on account of price increases in certain brands and improved volumes, the same from other CIS countries and Romania declined 2 per cent.
Revenue from India surged 18 per cent led by revenues from the vaccine portfolio in-licensed from Sanofi, new products as well as price increases. During the quarter, the company launched three new brands in the country, taking the year-to-date total to 16. We also integrated the nutraceutical products under our subsidiary, ‘Dr. Reddy’s and Nestle Health Science Limited’ during the quarter.
Growth
“We had a healthy balance sheet with a net cash of ₹1,889 crore which will allow us to focus on both organic and inorganic growth opportunities,’‘ the CFO said. In terms of capex, the company has spent ₹1,200 crore so far against the pegged ₹2,500 crore, he added.
Erez Israeli, the CEO, said the company would continue to invest in biosimilars and other innovative products. Dr Reddy is likely to launch at least three biosimilar products in the US and European markets by 2027, he added.
During the quarter, Dr Reddy’s secured Marketing Authorization from European Commission for rituximab biosimilar. It also received approval from the USFDA for Investigational New Drug (IND) application for AUR-112, a highly differentiated potent and selective inhibitor of MAL Tl, being developed for treatment of lymphoid malignancies.