Dr Reddy’s Laboratories Ltd, the second-largest drugmaker in India by market capitalisation, reported a 7 per cent rise in net profit for the first quarter on a 12 per cent growth in consolidated revenues, missing street expectations.
The firm reported net profit of Rs 361 crore for the three months ended June 30, 2013, much muted compared to EBITDA growth of 13 per cent. EBITDA for the quarter stood at Rs 568.9 crore.
The company saw revenues rise 12 per cent to Rs 2,844.9 crore over the year-ago period, led by growth in revenue from the global generics segment.
Dr Reddy’s adjusted PAT normalised to annualised effective tax rates rose 12 per cent to Rs 322.7 crore over the year-ago period.
Dr Reddy’s derives revenue from two broad segments—
global generics and pharmaceutical services & active ingredients (PSAI). The growth in revenue was essentially powered by the growth in its global generics segment.
The company’s revenue from global generics segment rose 15 per cent to Rs 2190.3 crore over the corresponding period last year. PSAI segment’s revenues rose 6 per cent to Rs 586.8 crore.
The company increased its expenditure on research and development by 55 per cent to Rs 240 crore or 8.5 per cent of revenue during Q1 FY14 compared with 6.2 per cent in the year-ago period.
The company launched 18 new generic products, filed 12 new products and registered and filed five DMFs globally this quarter.
(Edited by Joby Puthuparampil Johnson)