Dr Reddy's Q2 net up by 77% YoY

Pharma major Dr Reddy's on Friday reported a rise of 77% in its consolidated net profit for the second quarter of 2018-19, at Rs 504 crore from Rs 285 crore during the corresponding period of the previous fiscal.

The Hyderabad-headquartered company posted a net profit of 10% over the first quarter of 2018-19.

The revenues during Q2 were Rs.3,798 crore, up 2% quarter-on-quarter and 7% year-on-year. For the first half of the current fiscal, the revenues increased by 10% YoY.

"I am encouraged with our performance and progress in the second quarter. Our continuous focus on execution, operational efficiency and cost-optimization are showing results," Dr Reddy's Co-chairman and CEO, G.V. Prasad said in a statement.

"Looking ahead, our priority will be to resolve pending regulatory issues, and continue to work on execution and cost structures that will enable affordable medicines for more patients," he added.

North America accounted for 38% sales during Q2, followed by emerging markets (20%), India (18%) and Europe (5%).

The share of Pharmaceutical Services and Active Ingredients (PSAI) in revenues was 16% while proprietary products and others contributed 4%.

"Revenues from Global Generics (GG) segment at Rs 30.5 billion. The year-on-year growth of 7% was primarily driven by contributions from emerging markets, India and favourable forex. Quarter-on-quarter the sales remained flat," it said.

As of September 30, 2018, cumulatively 113 generic filings were pending for approval with the USFDA.

"Revenues from emerging markets at Rs 7.5 billion. Year-on-year growth is 36%. Sequential growth is 13%. Growth is primarily on account of improved volume offtake in our existing markets and a scale-up in our new markets," said Prasad.

--IANS

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