Dr Reddy's Laboratories, a second largest Indian pharma company with net sales of Rs.14,800 crore plus, has posted strong performance during the second quarter ended September 2015. Its consolidated net profit moved up by 25.8 per cent to Rs.722 crore from Rs.574 crore in the corresponding period of last year. Its consolidated net sales also increased by 11.2 per cent to Rs.3,989 crore from Rs.3,588 crore. With satisfactory growth in bottom line, EPS moved up to Rs.42.32 from Rs.33.70 in the last period. Gross profit margins worked out to 61.3 per cent and improved by 285 bps over last year.
DRL scrip improved toady by Rs.106.55 and reached at Rs.4,214.05 on BSE.
The company's sales of global generics improved by 14.5 per cent to Rs.3,277 crore from Rs.2,861 crore in the same quarter of last year. Similarly, the sales of proprietary products moved up by 18.4 per cent to Rs.66 crore from Rs.56 crore. The generic sales in North America increased by 32.3 per cent to Rs.1,856 crore from Rs.1,403 crore and that in Europe went up by 64.3 per cent to Rs.212 crore from Rs.129 crore. Its sales of generic in India increased by 14 per cent to Rs.546 crore from Rs.480 crore. However, generic sales in emerging markets declined by 22 per cent to Rs.662 crore from Rs.849 crore.
Though global generics sales improved its sales of pharmaceutical services and active ingredients (PSAI) declined by 10.7 per cent to Rs.742 crore from Rs.830 crore as its sales in North America declined sharply by 47 per cent to Rs.69 crore from Rs.130 crore and that in Europe declined by 5 per cent to Rs.243 crore from Rs.255 crore. It PSAI sales in India also declined by 19 per cent to Rs.72 crore from Rs.90 crore.
R&D expenditure increased by 8.8 per cent to Rs.447 crore from Rs.411 crore. It filed two new product with US FDA during the quarter and its cumulative total pending approvals reached at 76 ANDAs. It also filed 10 DMFs globally and 3 in the US. The cumulative number of DMF filings reached at 755.
G V Prasad, co-chairman and CEO, said, “I am pleased with our performance or this quarter. We had robust sales growth across our markets of US, India and Europe, supported by new products that were launched in the last twelve months. Our investment in R&D remains at 11 per cent, as we continue on our strategy of building an exciting pipeline of assets across our businesses. 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 some of our facilities.”
For the first half ended September 2015, DRL's consolidated net sales increased by 9 per cent to Rs.7,747 crore from Rs.7,105 crore in the similar period of last year and its net profit went up 19.9 per cent to Rs.1,348 crore from Rs.1,124 crore. EBIDTA reached at Rs.2,130 crore and worked out to 27.5 per cent of revenues. EPS worked out to Rs.79.04 as against Rs.66.05 in the last period. R&D expenditure increased by 10.9 per cent to Rs.886 crore from Rs.799 crore.