Dr Reddy's Laboratories June Quarter Profit Declines 13% To Rs 579 Crore
Dr Reddy's Labs' operating profit rose 2% in the April-June period
- Dr Reddy's Labs posted Rs 662.8 crore profit in same quarter a year ago
- Revenue rose 15% to Rs 4,417.5 crore
- Gross margin improved to 56%
Pharmaceuticals major Dr Reddy's Laboratories on Wednesday reported a 12.60 per cent annual decline in its net profit to Rs 579.3 crore in the quarter ended June 30. The drug maker had reported a net profit of Rs 662.8 crore in the corresponding period a year ago. In a regulatory filing, Dr Reddy's Labs said its revenue from operations came in at Rs 4,417.5 crore in the April-June period, marking a rise of 15 per cent compared to the year-ago period.
The Hyderabad-based company's earnings before interest, taxes, depreciation, and amortization (EBITDA) - or operating profit - rose 2 per cent to Rs 1,162 crore. Its gross margin improved to 56 per cent from 51.7 per cent, it said.
Revenue from North America, its biggest market, rose 6 per cent to Rs 1,730 crore driven by contribution from new products launched and aided by a favorable forex rate, which was partially offset by price erosion, Dr Reddy's Labs added.
Revenue from India declined 10 per cent annually to Rs 630 crore. The decline was on account of lower sales volume due to lower prescriptions generated and fall in patient footfalls in pharmacies and clinics due to COVID-19, the company said.
"The current quarter's financial performance has been strong across all parameter. l am glad that we have been able to serve our patients well and ensured continuity of business operations despite the challenging times," said GV Prasad, co-chairman and managing director, Dr Reddy's Laboratories.
"We have started integration and acquired business from Wockhardt and executed two important licencing arrangements for treatment options for COVID-19. Currently, we are working towards bringing both these drugs to multiple markets."
Dr Reddy's said its operations have continued without much impact, as it continued its engagement with doctors through digital channels, ensured regular supplies of our products to meet with the market demand and continued R&D activities including few projects pertaining to COVID-19.
At 1:48 pm, Dr Reddy's Labs shares traded 3 per cent higher at Rs 4,175, outperforming the benchmark Sensex index, which was down 0.45 per cent amid volatile trade.