Dr Reddy's Q2 net profit jumps 30% to Rs 992 crore

Revenues from the Global GenericsG segment was at Rs 4740 crore a Year-on-year growth of 19% driven by Covid portfolio

Drug major Dr Reddy's Laboratories on Friday reported a 30 per cent jump in its consolidated net profit to Rs 992 crore for the quarter ended September 30, 2021, on account of other income and robust sales in all markets.

The company had posted a net profit of Rs 762.3 crore for the corresponding period of the previous financial year, Dr Reddy's Laboratories said in a press release. Its consolidated revenue during July-September 2021 stood at Rs 5,763.2 crore. It was Rs 4,896.7 crore in the year-ago period, it added.

Other operating income stood at Rs. 170 billion compared to about Rs 15 crore in Q2 FY21. The increase was on account of the recognition of income towards the sale of all of the rights relating to anti-cancer agent E7777 (denileukin diftitox) to Citius Pharmaceuticals, Inc, the release said. "I am pleased with the improvement in the financial performance across our businesses.

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While we continue to strengthen our core businesses of generics and APIs (active pharmaceutical ingredients), we are also making investments in our long-term growth drivers and deeper innovation capabilities," Dr Reddy's Laboratories Co-Chairman and Managing Director G V Prasad said. Under the Covid-19 products basket, the drugmaker launched the Sputnik V vaccine, Remdesivir, Avigan and 2-deoxy-D-glucose (2-DG) till now.

Revenues from the Global GenericsG segment was at Rs. 4740 crore a Year-on-year growth of 19 per cent driven by covid portfolio, new product launches and base business volume traction across key markets. However, it was offset to some extent by price erosion in some of the company’s products. Revenues from India grew by 25 per cent during the quarter at Rs 1140 crore while Emerging Markets up by 50 per cent to Rs 1300 crore.

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Pharmaceuticals Services and Active Ingredients earned Rs 840 crore a decline of two per cent over the same quarter last fiscal. Dr Reddy’s spent Rs 450 crore on Research and Development during the second quarter. Shares of Dr Reddy's Laboratories closed at Rs 4,635.80 per scrip on the BSE, up 1.44 per cent from its previous close.

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