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Dr Reddy’s Laboratories’ consolidated net profit rose 52 per cent to ₹550 crore in the first quarter ended June 30, compared with ₹361 crore a year ago.
The total revenue of the Hyderabad-based company increased 24 per cent to ₹3,517 crore in the quarter from ₹2,844 crore in the last corresponding period.
The growth was driven by a 32 per cent rise in revenue from its global generics business.
North America alone saw a rise of 51 per cent in revenue, while the operations in Russia and India also did well, Abhijit Mukherjee, Chief Operating Officer and President of Global Generics, Dr Reddy’s, told reporters here on Wednesday.
The company got benefited by sustained performance from limited competition launches, including decitabine, azacitidine and zoledronic acid injection.
During the quarter, the company launched 25 generic products and filed 27 new production applications.
The growth in revenue largely came from products launched last year. “But this is part of the game in the generics business and we keep launching products,” Mukherjee said.
In the domestic market, an increase in prescription sales, better performance by big brands and lower attrition by staff resulted in 15 per cent growth in sales at ₹400 crore, said Saumen Chakraborti, Chief Financial Officer. Revenue from Europe declined 7 per cent due to adverse market conditions and deferment of orders by some customers brought down revenue from pharmaceutical services and active ingredients by 6 per cent.
The company has 70 pending abbreviated new drug applications with the US Food and Drug Administration and hopes to get first-to-file status for eight products.
The research and experimentation expenses had increased 59 per cent year-on-year.
GSK alliance On the progress its alliance with GSK for emerging markets, Mukherjee said it was not ramping up to the expectations.
“Both of us have realised that selling branded generics is different from other products. Going forward, the partnership will be more selective and value-based, but not scale-driven.”
The alliance now has 25 to 30 products, he added.
The company’s scrip gained 2.01 per cent on the BSE on Wednesday to end at ₹2,822.25.
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