Dr Reddy's Laboratories Q4 PAT grows nine-fold riding on US, India biz

Hyderabad-based Dr Reddy’s Laboratories (DRL) posted a nine-fold year-on-year (YoY) increase in net profits for the fourth quarter of the financial year. The firm was riding on a 16 per cent growth in revenues. In the corresponding quarter last year, the firm was impacted by impairment costs, pricing pressure in the US and EU, as well as lower export benefits. The results were declared after market hours.

The company posted a revenue of Rs 6,296.8 crore for the quarter, on the back of a 27 per cent growth in US and 32 per cent growth in India. Sequentially, however, the US revenues have fallen by 17 per cent. Profit after tax (PAT) grew by more than nine-fold to Rs 959 crore. North America accounts for 40 per cent of DRL’s revenues, while the Indian business accounts for around 20 percent of consolidated revenues.

For the full year 2022-23, DRL’s revenues were up 15 percent to Rs 24,587.9 crore while the PAT grew by 91 percent to Rs 4,506.7 crore.

The Board has recommended payment of a dividend of Rs 40 per equity share of face value Rs 5 each (800 per cent of face value) for the year ended March 31, 2023 subject to approval of the shareholders of the company.

DRL co-chairman and MD GV Prasad said that FY23 has been a year of record sales, profits and cash flow driven by the performance in US generics. “We progressed well in our productivity and sustainability agenda. We will continue to deliver on our purpose, invest in growth drivers and promote a culture that is innovative and collaborative ensuring the future of our business,” he added.

DRL launched 23 products in the US and two in Canada during the year, and according to IQVIA MAT March 2023, DRL has grown by 4.6 percent in the US market even as the generic market in the US has been stagnant at 0.3 percent growth rate. MAT is moving annual turnover or the last twelve month’s turnover.

The company has also finished the clinical trials for Rituximab (biosimilar for auto-immune disorders and cancer) and has submitted data with the US regulator in April. It also acquired the prescription portfolio of Mayne Pharma.

As for India, the growth has primarily come from new launches and in-licensed products. DRL licensed cardiac brand Cidmus from Novartis during the year.

The Russia market, however, declined by 24 percent during the quarter and grew by 2 percent only for FY23. This is due to the high base of the previous quarter when channel stocking was high.

Novartis registers 22% drop in Q4 revenues, logs Rs 25-cr profit

Novartis India posted a 22 per cent drop in revenue from operations during Q4FY23 to Rs 76.1 crore. It registered a profit of Rs 25 crore against a loss of Rs 23 crore in the corresponding quarter last year.