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Dr Reddy's Labs spurts after Q4 PAT jumps 76% to 764 cr

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Capital Market
Last Updated : May 20 2020 | 3:51 PM IST

Dr Reddy's Laboratories rose 4.80% to Rs 3877 after consolidated net profit jumped 76% to Rs 764.20 crore on a 10% rise in revenues to Rs 4431.80 crore in Q4 March 2020 over Q4 March 2019.

On the segmental front, income from the global generics business increased by 20% on a year-on-year (YoY) basis to Rs 3,639.80 crore in Q4 FY20 due to improvement in revenues from North American (up 21% YoY) and European (up 80%) markets, followed by India (up 5% YoY) and Emerging Markets (up 15% YoY).

Revenues of the pharmaceutical services and active ingredients (PSAI) business rose 6% to Rs 719.50 crore while that from proprietary products fell 76% to Rs 72.5 crore in Q4 FY20 over Q4 FY19.

Research and Development expenses in the fourth quarter rose 14% to Rs 419 crore as compared to Rs 366.2 crore reported in the corresponding period last year. Focus continues on building complex generics, bio-similars and differentiated products pipeline, the company said.

EBITDA jumped 13.54% to Rs 1,001.3 crore in Q4 FY20 from Rs 881.90 crore in Q4 FY19. EBITDA margins stood at 22.6% in Q4 March 2020 as compared to 22% in Q4 March 2019.

Profit before income tax stood at Rs 714.2 crore in Q4 FY20, up by 22% from Rs 585.1 crore in Q4 FY20.

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Consolidated net profit rose 4% to Rs 1,949.80 crore on a 13% rise in revenues to Rs 17,460 crore in the year ended March 2020 (FY20) as against the year ended March 2019 (FY19). Profit before income tax stood at Rs 1,803.20 crore in FY20, down by 20% from Rs 2,244.3 crore reported in FY19.

Commenting on the results, co-chairman and MD, GV Prasad said "FY 20 has been a very positive year for the company. Progress made during the year includes VAI status for CTO 6, healthy product pipeline build up, productivity improvement, and strong financial performance across our businesses".

Offering comments on the impact of COVID-19 on its business, the drug maker (based on its estimates) expects to fully recover the carrying amount of receivables and added that it will continue to closely monitor any material changes to future economic conditions.

Earlier today, the company said that its formulations manufacturing plant - 3 at Bachupally in Hyderabad received the establishment inspection report (EIR) from US Food and Drug Administration (FDA).

Dr. Reddy's Laboratories is an integrated pharmaceutical company. Through its three businesses - pharmaceutical services & active ingredients (PSAI), global generics and proprietary products - the company offers a portfolio of products and services including APls, custom pharmaceutical services, generics, biosimilars and differentiated formulations.

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First Published: May 20 2020 | 2:16 PM IST

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