The net profit came on a more than 9% increase in total revenue from operations to ₹6,331.8 crore
The net profit came on a more than 9% increase in total revenue from operations to ₹6,331.8 crore
Pharma major Dr. Reddy’s Laboratories posted an almost 12% increase in consolidated net profit for the September quarter to ₹1,114.2 crore from the year-earlier period, aided by the introduction of new products, particularly copy of cancer drug Revlimid in the U.S., even as Covid sales showed signs of ebbing and price erosion remained a challenge.
Overall, it was a very strong performance and helping the topline was also a rebound in Russia market, CFO Parag Agarwal said in a media interaction on Friday.
The net profit came on a more than 9% increase in total revenue from operations to ₹6,331.8 crore. Total income rose more than 6% to ₹6,372.6 crore, according to the results prepared as per the Indian Accounting Standards (Ind AS).
On the mainstay global generics business, the company said at ₹5,590 crore revenue from the segment was an 18% year-on-year increase and sequentially 26% higher driven by launch of the Lenalidomide capsules in the U.S. (as part of the volume limited settlement with the innovator) and sequential quarter improvement in Russia sales. However, the growth was partly offset by price erosion in its generic markets and higher base due to Covid product sales in the previous year.
“We continue to progress well in our productivity, innovation and sustainability agenda,” co-chairman and MD G.V. Prasad said in a statement.
To queries, Mr. Agarwal said favourable product mix, including new products and a good cost control were key drivers of the margin. Dr. Reddy’s had launched six products in the U.S. during the quarter. On price erosion, he said it is part of the business model in North America and continues to be within normal range.
