 "DRDO's 2DG anti-Covid drug priced at Rs 990 per sachet: Dr Reddy's")
Hyderabad-based Dr Reddy's Laboratories (DRL) posted a 33 per cent rise in net profit for the second quarter of FY24 to Rs 1,480 crore, while its revenues grew by 9 per cent year-on-year to Rs 6,880 crore.
On a quarter-on-quarter basis, DRL's revenues grew by 2 per cent and profit after tax (PAT) was up 6 per cent. DRL revenues came in line with Bloomberg estimates, while the profits beat the estimates (Rs 1,290 crore). DRL stock ended the day's trade on BSE at Rs 5,835.5 apiece, down marginally.
G V Prasad, the Co-Chairman and Managing Director stated: "We delivered another quarter of strong results with the highest-ever sales and profits, driven by market share gains and momentum in our US generics business and robust growth in Europe. We are continuing to strengthen our pipeline both organically and through business development to drive growth and create differentiation."
The company said that the Ebitda was enabled by geographic diversification and productivity improvement in operations. Parag Agarwal, Chief Financial Officer (CFO), DRL said that they have also benefited from the softening of raw material prices.
The revenues were driven by generics in the US and Europe. Emerging markets grew by 5 per cent quarter-on-quarter, but there was a 1 per cent year-on-year decline due to seasonality and unfavourable forex. Russia saw quarter-on-quarter growth of 3 per cent in revenues coming in at Rs 580 crore. There was a year-on-year decline of 3 per cent, however, in that market mainly due to currency devaluation.
As for North America, the Q2FY24 revenues came in at Rs 3,170 crore, up 13 per cent year-on-year, but down 1 per cent quarter-on-quarter. The growth was on account of growing momentum in our core portfolio, Mayne integration, and favourable movement from foreign exchange, which was partly offset by price erosion, DRL said. For the full year, DRL expects to launch 24-25 products in North America.
DRL draws 46 per cent of its business from North America, 18 per cent from emerging markets, and 17 per cent from India.
