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Macedonian (MK) Hyderabad-based pharma major Dr. Reddy's Laboratories on Saturday announced that its June quarter profit after tax fell 0.8% year-on-year (YoY) to Rs 1,392 crore while revenue jumped 13.9% to Rs 7,673 crore.
While announcing the quarterly numbers, the company's board also approved split of equity shares in the ratio of 1:5, which means that 1 existing share will split into 5.
The company said its revenue growth during the quarter was largely driven by growth in global generics revenues in North America as well as India.
Its gross margins improved to 60.4% during the quarter, an increase of 170 basis points (bps) over previous year and 183 bps sequentially. The increase is on account of favourable product mix and overhead leverage, partially offset by price erosion in generics markets.
"We had a good start to the new fiscal year and our growth & profitability was mainly driven by our generics business. We continue to strengthen our core businesses and have made strategic investments in biologics, consumer healthcare and innovation to drive patient impact and value creation," said company Co-Chairman and MD GV Prasad.
During the quarter, the global generics business recorded a growth of 155 YoY and was primarily volume led, aided by new launches and integration of recently in-licensed vaccine portfolio n India, partially offset by price erosion.
Its India revenues grew 15% YoY to Rs 1,330 crore and was mainly on account of new product launches including the recently in-licensed vaccine portfolio.
"During the quarter, we launched 13 new brands in the country, in addition to exclusive rights to promote and distribute Sanofi's vaccine brands," DRL said in a regulatory filing.
The company's board has also approved fund infusion by way of investment in preference shares of Dr. Reddy’s Laboratories SA, Switzerland, a wholly-owned subsidiary of the Company, upto an amount of GBP 500 million. The fund will be used for acquisition of Nicotinell and related brands by way of acquisition of all of the quotas of Northstar Switzerland.
Shares of Dr Reddy's Lab had ended Friday's session 0.55% higher at Rs 6,892 on BSE.
