The company has reported 49.34% rise in its net profit at Rs 647.52 crore for the quarter ended September 30, 2015 as compared to Rs 433.59 crore for the same quarter in the previous year.
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Revenues grew 11 per cent year-on-year to Rs 3,989 crore, slightly exceeding estimate of Rs 3,960 crore.
Other highlights included the gross profit margin which stood at 61.3 per cent meant an improvement of 285 basis points over a year ago.
Shares of Dr. Reddy’s rose 2.6% to 4,214.05 rupees ahead the earnings that were released after market hours. Revenues were mainly driven by robust sales growth across the US, India and Europe. But, these gains were partly offset by emerging market sales (Russia, Venezuela, etc) that declined 22 per cent due to cross-currency headwinds.
Meanwhile, the pharmaceutical services and active ingredients (PSAI) segment witnessed a 7 per cent de-growth at Rs 591.8 crore compared to the previous fiscal.
R&D expenditure increased by 8.8 per cent to Rs. 447 crore from Rs. 411 crore.
The strong USA momentum also boosted Dr Reddy’s profit. Cumulatively, 76 ANDAs are pending for approval of which 50 are para four filings out of which it believes 18 have the first-to-file (FTF) status.
G V Prasad, co-chairman and CEO, said, “I am pleased with our performance or this quarter”.
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In global generics, the key markets- USA, Europe and India, posted a growth of 32%, 65% and 14% yoy, Dr Reddy’s Laboratories said in a statement. “Our R & D spend remains at 11 per cent as we continue on our strategy of building an exciting pipeline of assets across our businesses”, he stated. “While satisfied with our performance, we are intensely focused on enhancing our quality management system and infrastructure to meet evolving global requirements and address the pending cGMP related matters at a few of our facilities”. The research and development spend during the quarter was about ₹450 crore, which showed a 9 per cent increase as compared to the year ago period.
