Hyderabad-based Dr. Reddy’s Laboratories (DRL) profit after tax (PAT) dropped by 0.90 per cent year-on-year (Y-o-Y) to Rs 1,392.4 crore during the first quarter of the current financial year (Q1FY25), while the revenue from operations grew by 13.88 per cent Y-o-Y to Rs 6,757.9 crore.
On a sequential basis, the company exhibited an 8.18 per cent increase in revenue and PAT rose by 6.31 per cent.
Commenting on the results, Co-Chairman & MD, G V Prasad said: “We had a good start to the new financial year and our growth & profitability were mainly driven by our generics business. We continue to strengthen our core businesses and have made strategic investments in biologics, consumer healthcare and innovation to drive patient impact and value creation.”
Global Generics (GC) business, particularly in North America and India, primarily drove growth for the company.
GG contributed significantly to the overall growth, with revenues reaching Rs 6,890 crore. The business experienced a 15 per cent Y-o-Y and 13 per cent Q-o-Q revenue increase, primarily due to increased sales volumes driven by new product launches and the integration of the recently acquired vaccine portfolio in India. However, this growth was partially offset by pricing pressures.
The business in the North American region was a key growth driver, with revenues surging 20 per cent Y-o-Y and 18 per cent Q-o-Q to Rs 3,850 crore. This growth was fueled by increased sales volumes of existing products and the successful launch of three new products. The company also filed one new Abbreviated New Drug Application (ANDA) and has 80 generic filings pending US Food and Drug Administration approval.
The revenue growth in the European region was modest at 4 per cent Y-o-Y and 1 per cent Q-o-Q, reaching Rs 530 crore. The area benefited from improved sales volumes and new product launches, but faced challenges from price erosion. Germany was the standout performer with 14 per cent Y-o-Y growth, while the UK experienced a 7 per cent Y-o-Y decline.
The Indian market revenues increased 15 per cent Y-o-Y and 18 per cent Q-o-Q. This growth was primarily driven by the launch of new products, including the recently in-licensed vaccine portfolio. The company’s India Pharmaceutical Market (IPM) rank was 10 for the quarter.
The emerging markets segment reported a 3 per cent Y-o-Y revenue growth to Rs 1,190 crore in Q1FY25, despite a 2 per cent Q-o-Q decline. While market share gains and new product launches contributed positively, while the unfavourable foreign exchange rates and price erosion impacted the overall growth.
Russian revenues declined 2 per cent Y-o-Y to Rs 550 crore due to adverse currency exchange rates, partially offset by price hikes and increased sales volumes. However, the region showed a strong 11 per cent Q-o-Q growth driven by improved sales.
The Commonwealth of Independent States (CIS) and Romania faced challenges, with a 2 per cent Y-o-Y and 11 per cent Q-o-Q revenue decline. Decreased sales volumes were the primary culprit, partially mitigated by price increases.
The Rest of the World (RoW) region exhibited an 11 per cent Y-o-Y growth to Rs 440 crore, attributed to higher sales volumes and new product introductions. However, an 11 per cent Q-o-Q decline was observed due to reduced sales and price erosion.
The company launched 17 new products across the emerging markets segment during the quarter.
Pharmaceutical Services and Active Ingredients (PSAI) reported a 14 per cent Y-o-Y revenue growth, driven by increased sales volumes and new product contributions. However, a 7 per cent Q-o-Q decline was observed due to lower sales of certain products. The company filed 11 Drug Master Files (DMFs) globally during the quarter.
First Published: Jul 27 2024 | 6:08 PM IST
