Drugmaker Dr. Reddy’s Laboratories reported consolidated net profit increased 36% year-on-year to ₹1,309.8 crore for the quarter ended March on the back of growth in global generics revenue in the all important North America as well as emerging markets.
The increase, from the ₹960.1 crore posted in the year-earlier period, came on an almost 13% rise in revenue from operations during the fourth quarter to ₹7,113.8 crore (₹6,315.2 crore), according to results prepared as per Indian Accounting Standards.
On a sequential basis, however, revenue declined almost 2% while net profit was 5% lower. The company attributed the decline, quarter on quarter, primarily due to lower global generics revenues in North America, Emerging Markets and India.
Declares ₹40 dividend
Dr. Reddy’s has declared a final dividend of ₹40 per equity share of ₹5 each for the financial year 2023-24.
Strong performances in North America, Europe and Emerging Markets helped the drugmaker post an almost 14% increase in revenue from operations during the fiscal to ₹28,011.1 crore (₹24,669.7 crore). Net profit at ₹5,577.9 crore (₹4,507.3 crore) was nearly 24% increase.
Future drivers
“Our growth and profitability in FY2024 has been driven by our performance in the US. We have also made significant progress on future growth drivers through licensing, collaboration and pipeline building... continue to strengthen our core business through superior execution as we invest and build the future growth drivers,” Co-Chairman and MD G. V. Prasad said.
On the March quarter performance the company, in a release, said global generics revenue increased almost 13% yoy to ₹6,128.9 crore (₹5,429.7 crore) driven by increase in volumes of base business, new product launches while partially offset by price erosion in certain markets. It, however, declined 3% sequentially due to change in product mix, price erosion and unfavourable forex impact. Dr. Reddy’s had posted ₹6,312.4 crore revenue from its core global generics in the December quarter.
