Dr Reddy’s Laboratories (DRL) has reported a 7% decline in net profit to Rs 575 crore from Rs 618.42 crore due to moderate operational performance in the US market, higher R&D expenses and an unfavourable currency in the Russian market. However, consolidated net sales improved 8.7% to Rs 3,843.1 crore from Rs 3,534 crore.
Giving a revenue breakup, Saumen Chakraborty, CFO said, “The SG&A expenses, excluding impairment adjustments, marginally grew by 2%.
This increase is largely due to annual increments, additional manpower deployment in the past 12 months and other sales and marketing spend for events specific to this quarter offset by the favourable impact of emerging market currency depreciation.”
Sales from global generics increased 7.8% to Rs 3,169 crore from Rs 2,940 crore and pharmaceutical services & active ingredients (PSAI) improved 22% to Rs 799 crore from Rs 654 crore. Sales from proprietary products declined 18.8% to Rs 39 crore.
Revenues from North America, DRL’s biggest market, increased 4% to Rs 1,680 crore. The company launched limited competition products, namely decitabine, azacitidine and divalproex sodium ER and expanded market share of key molecules, namely ziprasidone, amlodipine-atorvastatin and sumatriptan auto injector.
It launched six new products, filed two ANDas and 68 ANDAs are pending approval with USFDA. Out of this, 13 are first-to-file (FTF).
Revenues from Russia declined 9% year on year to Rs 400 crore on account of the rouble’s depreciation. “We feel the Russian market was challenging. We had a tough time but our volumes grew 30% which mitigated some impact, though the impact of currency devaluation has not fully played out,” he said. However, sales in other emerging markets were up 51% to Rs 460 crore.
