Dr.Reddy’s Laboratories Profit declines 13% to Rs.579 crore

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Dr. Reddy’s Laboratories, an Indian multinational pharmaceutical company on Wednesday 29 June 2020 reported a 12.59 % year-on-year drop in its net profit at Rs.579.30 crore for the quarter ended June 30, 2020. The company had reported a net Profit of Rs.662.80 crores in the corresponding quarter last year. Dr.Reddy’s lab said its revenue from operations came in at Rs.4417.5 crore in the April-June period marking a rise of 15 percent compared to the year ago period.  

Dr.Reddys Laboratories, an Hyderabad based multinational pharmaceutical company had its Earning before Tax, interest, depreciation, and amortization (EBITDA) and the operating profit rose to Rs.1162 crore. The gross margin of the company raised to 56 percent from 51.7 percent.  Dr.Reddy’s Laboratories biggest market is from North America. The Revenue from North America rose 6 percent to Rs.1730 crores driven by contribution from new products launched and aided by a favourable forex rate, which was partially offset by price erosion. 

 The Company’s revenue from Global generics segment stood at Rs.3507 crores, a year-on-year growth of 6% driven primarily by Europe and Emerging Markets. While Emerging markets reported revenue of 800 crores with a year-on-year growth of 9% and a sequential decline of 1% revenues from Russia were at Rs.330 crore with a year-on-year decline of 17%. The Company had paid income tax of Rs.299.60 crores upto 60 percent against Rs.187.20 crore in the same period last year. 

The Shares of the company traded 3.48 percent higher at Rs.4191 after the announcement of the quarterly result, while the benchmark BSE Sensex was down 0.48 percent at 38,308. 

Revenue from India declined 10 percent annually to Rs.630 crore. The decline was on account of lower sales volumes due to lower prescriptions generated and fall in patient numbers in the Pharmacies, and clinics due to the covid-19 pandemic.  

G.V.Prasad, co-chairman and managing director of Dr.Reddy’s Laboratories said that the current quarter’s financial performance of the company has been strong across all parameters. Iam glad that we have been able to serve our patients well and ensured continuity of business operations despite the challenging times of the corona virus outbreak. 

 He also added that the company has started integration and acquired the business of Wockhardt and started executing the two important licensing arrangements for the treatment options for Covid-19. Currently, the company is working towards bringing both these drugs to sell in the multiple markets.”

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