Pharma major Dr. Reddy's Laboratories reported a marginal 2% year-on-year (YoY) growth in its consolidated net profit at Rs 1,418 crore for the first quarter ended June. Revenue from operations rose 11% YoY to Rs 8,545 crore.
On a sequential basis, profit was down 11% and revenue was flat.
The revenue growth during the quarter was broad-based, aided by contributions from the acquired consumer healthcare portfolio in Nicotine Replacement Therapy (NRT) and sustained performance in branded markets.
EBITDA for the first quarter increased 5% YoY to Rs 2,280 crore. Margins declined 530 bps to 56.9% due to higher price erosion in generics segment and reduced operating leverage, partially offset by favorable product mix.
"We delivered double-digit growth this quarter over the same period last year, reflecting our strength in branded markets and positive momentum in the Nicotine Replacement Therapy portfolio," said Co-Chairman & MD, GV Prasad.
The Global Generics business clocked at Rs 7,560 crore revenues, showing YoY growth of 10% and flat QoQ.
In the North America, Q1 revenues came in at Rs 3410 crore, down 11% YoY. The drop was mainly due to increased price erosion in certain key products including Lenalidomide.
During the quarter, the company launched five new products in the US. It also filed one new abbreviated new drug application (ANDA) with the USFDA during the quarter.
The Europe revenues stood at Rs 1,270 crore, surging by a massive 142% YoY. This includes revenues from the acquired NRT business.
The growth in Europe was largely driven by revenues from the acquired NRT portfolio and incremental contributions from new product launches though partly offset by price erosion. QoQ performance remained stable as the impact of price erosion was balanced by gains from forex and increased volumes.
The India business revenues rose 11% YoY to Rs 1470 crore, driven by introduction of new products, price increases and commercial execution. During the quarter, the company launched five new brands in the country.
In the emerging markets, revenues improved 18% YoY. The growth was largely driven by increased volumes of existing products, gains from new launches across multiple countries and favorable foreign exchange.
Dr Reddy's said the pricing pressure on Lenalidomide is expected to intensify in the US generics market. "We remain focused on strengthening our base business by delivery of our pipeline assets, improving overall productivity and business development," the company said.
In the pharmaceutical services and active ingredients (PSAI) segment, revenues increased 7% YoY to Rs 820 crore. Growth during the quarter was led by launch of new API products and favourable forex, partially
offset by lower pricing and softer demand.
On Wednesday, Dr Reddy's stock closed 0.6% higher at Rs 1,248 on NSE.
On a sequential basis, profit was down 11% and revenue was flat.
The revenue growth during the quarter was broad-based, aided by contributions from the acquired consumer healthcare portfolio in Nicotine Replacement Therapy (NRT) and sustained performance in branded markets.
EBITDA for the first quarter increased 5% YoY to Rs 2,280 crore. Margins declined 530 bps to 56.9% due to higher price erosion in generics segment and reduced operating leverage, partially offset by favorable product mix.
"We delivered double-digit growth this quarter over the same period last year, reflecting our strength in branded markets and positive momentum in the Nicotine Replacement Therapy portfolio," said Co-Chairman & MD, GV Prasad.
The Global Generics business clocked at Rs 7,560 crore revenues, showing YoY growth of 10% and flat QoQ.
In the North America, Q1 revenues came in at Rs 3410 crore, down 11% YoY. The drop was mainly due to increased price erosion in certain key products including Lenalidomide.
During the quarter, the company launched five new products in the US. It also filed one new abbreviated new drug application (ANDA) with the USFDA during the quarter.
The Europe revenues stood at Rs 1,270 crore, surging by a massive 142% YoY. This includes revenues from the acquired NRT business.
The growth in Europe was largely driven by revenues from the acquired NRT portfolio and incremental contributions from new product launches though partly offset by price erosion. QoQ performance remained stable as the impact of price erosion was balanced by gains from forex and increased volumes.
The India business revenues rose 11% YoY to Rs 1470 crore, driven by introduction of new products, price increases and commercial execution. During the quarter, the company launched five new brands in the country.
In the emerging markets, revenues improved 18% YoY. The growth was largely driven by increased volumes of existing products, gains from new launches across multiple countries and favorable foreign exchange.
Dr Reddy's said the pricing pressure on Lenalidomide is expected to intensify in the US generics market. "We remain focused on strengthening our base business by delivery of our pipeline assets, improving overall productivity and business development," the company said.
In the pharmaceutical services and active ingredients (PSAI) segment, revenues increased 7% YoY to Rs 820 crore. Growth during the quarter was led by launch of new API products and favourable forex, partially
offset by lower pricing and softer demand.
On Wednesday, Dr Reddy's stock closed 0.6% higher at Rs 1,248 on NSE.
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