Dr Reddy's Q2 net jumps over two-fold to Rs 1,093 cr

Dr Reddy's Laboratories on Friday reported over two-fold jump in consolidated net profit to Rs 1,092.5 crore for the second quarter ended September 30, 2019.

The company had posted a profit of Rs 503.80 crore for the year-ago period, Dr Reddy's said in a regulatory filing.

The net tax for the quarter has a benefit of Rs 330 crore due to recognition of deferred tax assets of Rs 520 crore, primarily related to the MAT credit, it said.

Revenue in the second quarter stood at Rs 4,800.9 crore as against Rs 3,797.8 crore in the year-ago period, an increase of 26.41 per cent, it added.

Company's Co-Chairman and MD GV Prasad said the performance across the businesses and strong cash generation during the quarter are pleasing.

"We are progressing well in execution of our strategy and in our transformation journey on quality and efficiency," he added.

Global generics segment revenues were at Rs 3,280 crore, up 7 per cent from the same quarter last fiscal, primarily driven by Europe, emerging markets and India, the company said.

Revenues from North America were flat at Rs 1,430 crore while that from Europe were at Rs 280 crore. Revenues from India stood at Rs 750 crore and emerging markets at Rs 830 crore, it added.

Dr Reddy's said its pharmaceutical services and active ingredients revenue was at Rs 710 crore, up 18 per cent from the corresponding period last fiscal.

Proprietary products segment clocked a revenue of Rs 740 crore, including Rs 720 crore towards licence fee for selling the US and select territory rights for two of neurology brands namely ZEMBRACE SYMTOUCH (sumatriptan injection) 3 mg and TOSYMRATM (sumatriptan nasal spray) 10 mg, to Upsher-Smith Laboratories, LLC, the company said.