Dr Reddy's Q3 profit up by 45 per cent at Rs 485 crore

Though Dr Reddy's was able to book a healthy profit during the quarter, revenues from North America declined by eight per cent despite new product launches.

Hyderabad: Dr Reddy's Laboratories Ltd registered a 45 per cent increase in its profit after tax for the quarter ended December 31 at Rs 485 crore against Rs 334 crore in the third quarter of FY18, a senior official of the city-based drug maker said Friday.

President, CFO and Global Head of HR of Dr Reddy's, Saumen Chakraborty told reporters here, consolidated revenues for the quarter under review was up by one per cent to Rs 3,850 crore.

It was Rs 3,806 crore in the same quarter last fiscal.

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The growth was based on improved performance in emerging markets, improved cost efficiencies and also party due to the profit booked on the sale of one of their plants here, he said.

"It has been a good quarter. On profit, the year on year growth is 45 per cent.

There was also profit we made out of the sale of our Jeedimetla plant," Chakraborty said in a press conference.

Though the company was able to book a healthy profit during the quarter, revenues from North America declined by eight per cent despite new product launches.

Revenues from North America declined by eight per cent to Rs 1,480 crore against Rs 1,607 crore in Q3 FY18.

"In North America, the total revenue was 1,483 crore so there is a year on year decline of 8 per cent, but quarter on quarter there is a 4 per cent growth.

Year-on-Year decline is due to the new launches we had last year.

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They were very good launches, that's why the base was very high. We have been able to launch 10 new products in Q3 of FY 19 in North America," he said.

Replying to query, he said the company bets big on the proposed launches of three products- Copaxone, Suboxone and birth control device Nuvaring.

Revenues from global generics segment in Q3 was reported at Rs 3,135 crore, a year-on-year growth of four per cent over the same quarter last year, primarily driven by contributions from emerging markets and India.

Revenues from emerging markets was at Rs 770 crore registering 31 per cent growth on year-on-year basis primarily on account of new launches, traction in new markets and improved volume off take in the existing markets.

Revenues from India grew by 10 per cent to Rs 670 crore driven by volume traction and new products.

Europe sales was up by one per cent to Rs 200 crore, the official said.

Revenues from Pharmaceutical Services and Active Ingredients stood at Rs 594 crore in the third quarter with nine per cent growth over the Q2 of FY18.

The pharma company may spend a lesser amount on CapEx this year owing to the availability of sufficient capacities.

"We continued to improve our performance in the third quarter of FY 19, supported by significant growth in emerging markets and India, pickup in new product launches, and improvements in cost structure.

We are on track towards delivering sustainable and profitable growth," company CEO and co-chairman G V Prasad said in a press release.

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