Dr Reddy's Laboratories rose 5.14% to Rs 4808.25 after the company's consolidated net profit rose 30% to Rs 992 crore on 18% increase in net sales to Rs 5763.20 crore in Q2 September 2021 over Q2 September 2020.
On a consolidated basis, the company's profit before tax rose 47% to Rs 1268.10 crore in Q2 September 2021 over Q2 September 2020.During the quarter, EBITDA was reported at Rs 1557.20 crore (up 22.88% YoY). The EBITDA margin stood 27% in Q2 September 2021 higher than 25.9% in Q2 September 2020 and 20.7% in Q1 June 2021.
Selling, General & Administrative expenses jumped 22% YoY and 6% QoQ to Rs 1595.10 crore. This increase was in line with the business growth and primarily attributable to royalty on sales, annual increments, investments in sales & marketing of our key brands and investments in digitalization.
Research and Development (R&D) expenses rose 2% to Rs 446.30 crore. The company said it continues its focus on investing in R&D to build a healthy pipeline of new products across our markets including development of products in our biosimilars and generics businesses.
Commenting on the results, co-chairman & MD, G V Prasad said: "I am pleased with the improvement in the financial performance across our businesses. While we continue to strengthen our core businesses of generics and APls, we are also making investments in our long-term growth drivers and deeper innovation capabilities. Our focus remains on meeting unmet patient needs around the world in keeping with our purpose."
Free cash flow stood at Rs 83 crore. Net debt stood at Rs 270 crore as on 30 September 2021. Consequently, net debt to equity ratio is 0.015.
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Revenues from Global Generics (GG) segment stood at Rs 4740 crore during the quarter. The segment reported year-on-year growth of 19% and sequential quarter growth of 15%, driven by Covid portfolio, newproduct launches and base business volume traction across key markets. However, this was offset partly by price erosion in some of our products.
Revenues from North America market rose 3% YoY and 9% QoQ to Rs 1890 crore. Revenues from Europe was at Rs 410 crore, rising 10% YoY and 4% QoQ. Revenues from India grew 25% YoY and 8% QoQ. Revenues from Emerging Markets stood at Rs 1300 crore, rising 50% YoY and 42% QoQ.
Revenues from Pharmaceutical Services and Active Ingredients (PSAI) was at Rs 840 crore with a year-on-year decline of 2% and sequential quarter growth of 11%.
Dr. Reddy's Laboratories is an integrated pharmaceutical company, committed to providing affordable and innovative medicines for healthier lives.
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