Dr Reddy's net up 64%

Sale from global generics rises 41%

Pharmaceutical major Dr Reddy's Laboratories Limited reported a 64 per cent jump in consolidated net profit at Rs 618.42 crore for the quarter ended December 2013, on the back of higher realisation from its key limited competition launches in the US. Net profit for the same quarter previous year was Rs 378.2 crore.

Consolidated revenues for the quarter under review grew 23.34 per cent at Rs 3,533.76 crore as compared with Rs 2,865.16 crore in the year ago period while gross profit (Ebitda) rose 67 per cent to cross the Rs 1,000-crore mark for the first time in a quarter due to growth in margins.

Sales from global generics, which now account for 83 per cent of the company’s total business as against 73 per cent in the corresponding previous quarter, grew 41 per cent to Rs 2,940 crore, crossing even the total revenues of the year ago period. Global generics contributed Rs 2,082.7 crore to its revenues in the corresponding previous quarter.

The upside in global income was driven by a steep 76 per cent growth in revenues from North America at over Rs 1,600 crore coming on the back of  full quarter realisation coupled with market share stabilisation for recent key launches, including azacidine, decitabine, divalproex, metroprolol, and atorvastatin, in limited competition space, according to the company.

However, revenues from domestic sales remained muted at 5 per cent to Rs 390 crore, primarily on account of the impact of revival of prices under the new pharma pricing policy. European sales, which account for just 6 per cent of its global generics business, declined 6 per cent.