Dr Reddy's Laboratories, a Rs.14,800 crore plus second largest pharma company in India, has posted satisfactory financial performance during the first quarter ended June 2015. Its consolidated net profit went up by 13.7 per cent to Rs.626 crore from Rs.550 crore in the corresponding period of last year. EBITDA improved by 12 per cent to Rs.990 crore. Its co0nsolidated net sales increased by 6.8 per cent to Rs.3,758 crore from Rs.3,518 crore. EPS improved to Rs.36.71 from Rs.32.34 in the last period.
After the announcement of financial results, DRL scrip moved up by almost 5 per cent on BSE to Rs.3,896. It opened at Rs.3730 and went up to Rs.3915. The scrip touched to its yearly high level at Rs.3960 on July 23, 2015.
The sales of global generics division, including operations of biologies business, increased by 7.7 per cent to Rs.3,096 crore from Rs.2,874 crore. The sales of generics in US improved by 14.3 per cent to Rs.1852 crore from Rs.1,621 crore in the corresponding quarter of last year due to sustained performance of the injectable franchise and market share gains in key molecules. Its European sales of generic improved by 43.3 per cent to Rs.191 crore from Rs.133 crore. DRL's domestic sales moved up by 18.9 per cent to Rs.476 crore from Rs.400 crore new products. Integration of the UCB products portfolio completed during the quarter.
Its generic sales in Russia, CIS countries, Romania and RoW declined by 19.8 per cent to Rs.578 crore from Rs.720 crore due to shortfall in Russian sales. Its sales in Russia declined by 45 per cent to Rs.230 crore. Due to macro-economic uncertainties and consequent depreciation of Rouble.
However, its sales of pharmaceutical services and active ingredients (PSAI) declined by 7.2 per cent to s 681.73 crore from Rs.734.54 crore. The sales from PSAI in Europe declined sharply by 12.3 per cent to Rs.235 crore from Rs.268 crore and that in India declined by 24.3 per cent to Rs.59 crore from Rs.78 crore. However, its PSAI sales in North America went up by 21.4 per cent to Rs.66 crore from Rs.55 crore. RoW sales increased by 31.1 per cent to Rs.201 crore from Rs.153 crore. The sales of proprietary products & others increased by 11 per cent to Rs.100 crore from Rs.90 crore.
Research and Development expenditure increased by 13.2 per cent to Rs.438.69 crore from Rs.387.53 crore. DRL filed 6 new products in the US during the quarter under review. Cumulatively, 73 ANDAs are pending for approval with the US FDA which 47 are Para IVs. The company filed 9 DMFs and its cumulative number of DMF filings reached at 747.
G V Prasad, co-chairman and CEO, said, “Our first quarter results, with YoY growth of 7 per cent in top line and 14 per cent bottom line, reflects healthy performance. We were able to achieve these results despite limited new launches and headwinds in the form of currency devaluation in key emerging markets. As we continue to further strengthen our product portfolio and drive new launches, we are well positioned for the next phase of our growth.”
The company's standalone net sales declined by 5.5 per cent to Rs.2,508 crore during the quarter from Rs.2,653 crore in the same period of last year. Its standalone net profit declined sharply by 21.1 per cent to Rs.476 crore from Rs.603 crore.