Dr Reddy's Laboratories (DRL), a Rs.13,200 crore plus second largest pharma major from India, has announced strong financial performance during the first quarter ended June 2014. Its consolidated net profit went up sharply by 52.4 per cent to Rs.550 crore from Rs.361 crore in the similar quarter of last year and its net sales moved up by 23.7 per cent to Rs.3,518 crore from Rs.2,845 crore. EBDITA improved by 53.7 per cent to Rs.666 crore from Rs.433 crore. EPS surged to Rs.32.34 from Rs.21.25 in the last period.

DRL scrip improved by Rs.53.20 or 1.9 per cent to Rs.2819.90 on BSE after the announcement of strong financial performance. The scrip touched to its 52-weeks highest level at Rs.2939.80 on February 28, 2014.

DRL's sales of global generics increased by 32.4 per cent to Rs.2,900 crore from Rs.2,190 crore in the same quarter of last year. Its sales in North America improved by 51.5 per cent to Rs.1,647 crore from Rs.1,087 crore, but that in Europe declined by 7 per cent to Rs.146 crore from Rs.157 crore. The company launched 4 new products. Its generic sales India improved by 14.6 per cent to Rs.400 crore from Rs.349 crore and that in Russia & CIS moved up by 8.2 per cent to Rs.486 crore from Rs.449 crore. Rest of the World clocked sales of Rs.222 crore as compared to Rs.148 crore in the corresponding quarter of last year.  

DRL's sales of pharmaceutical services and active ingredients (PSAI) declined 5.6 per cent to Rs.554 crore from Rs.587 crore due to lower sales in North America, India and rest of world. Its PSAI sales in North America declined sharply by 50 per cent to Rs.55 crore from Rs.109 core and that in India by two per cent to Rs.78 crore from Rs.79 crore. Its sales of PSAI improved in Europe by 28.1 per cent to Rs.268 crore from Rs.209 crore.

The sales of proprietary products declined by 3.1 per cent to Rs.306 crore from Rs.319 crore. The company's global generic segment and PSAI segment generated higher profit, but proprietary products and other products received setback on profitability front during the quarter under review.

The company incurred higher R&D expenditure of Rs.390 crore during the quarter, an increase of 59 per cent and this worked out to 11 per cent of its revenues. The company launched 25 new generic products and it filed 27 new product application and 20 DMFs globally and cumulative total reached at 678 DMFs. It filed 9 products in US and its cumulative total pending approvals reached at 70 ANDAs. Among the total ANDAs pending, 8 ANDAs to have 'First to File' status.

The company's standalone net sales increased by 48.8 per cent to Rs.2,653 crore from Rs.1,783 crore. However, its standalone net profit declined by 7.1 per cent to Rs.603 crore from Rs.649 crore due to significant higher tax liabilities. Taxation provision went up to Rs.178.93 crore from Rs.18.50 crore.