Q1 Results: Dr. Reddy’s Profit Grows After Four Quarters Of Decline
Net profit of the drugmaker rose in the April-June period after four quarters of decline.
Dr. Reddy’s Laboratories Ltd.’s profit grew for the first time in five quarters, beating analyst estimates, helped by the launch of a generic version of de-addiction drug Suboxone and lower taxes.
Net profit rose to Rs 456 crore from Rs 66 crore a year ago, the Hyderabad-based drugmaker said in an exchange filing today. That compares with the Rs 290-crore consensus estimate of analysts tracked by Bloomberg.
Revenue during the quarter rose 12.2 percent to Rs 3,720 crore, higher than the Rs 3,504-crore estimate. The tax rate for the company during the quarter stood at 9 percent against estimates of 23 percent, according to brokerage firm Investec.
The company’s earnings before interest, tax, depreciation and amortisation more than doubled from the year-ago period to Rs 783 crore, according to BloombergQuint’s calculations. That was also ahead of the Rs 613-crore forecast. Operating margins in the quarter increased to 21 percent from 9.2 percent a year ago, BloombergQuint’s calculations showed. That compares with a 17.5 percent estimate.
Other Key Highlights:
- Revenue from emerging markets stood at Rs 660 crore, up 16 percent (year-on-year).
- Revenue from global generics came at Rs 3,060 crore, up 12 percent (year-on-year).
- Revenue from pharmaceutical services and active ingredients stood at Rs 540 crore, up 16 percent (year-on-year).
The drugmaker has lined up a couple of new launches in the next calendar year. “We will launch Nuvaring (a contraceptive drug) in the first half of next year, said Saumen Chakraborty its chief financial officer and president, adding "Copaxone launch could be in the second half of next calendar year."