Dr Reddy’s Labs Q3 profit jumps 45% to Rs 485 cr, US business falls 8%

Dr Reddy’s Labs Q3 profit jumps 45% to Rs 485 cr, US business falls 8%

New Delhi, Feb 1: Dr Reddy’s Laboratories has reported a healthy 45 percent on year growth in third quarter profit to Rs 485 crore on a low base and good operating income.
Profit in same period last year stood at Rs 334.4 crore.
Revenue from operations increased 1 percent year-on-year to Rs 3,850 crore in quarter ended December 2018 as the growth in India, Europe and Emerging Markets offset by degrowth in North America business which contributed nearly 39 percent total revenue.
Profit was well ahead of poll estimates of Rs 353.4 while revenue was in line with expectations.
The pharma major said its global generics business showed a 4 percent on year growth at Rs 3,135 crore in Q3, driven by Europe (which grew by 1 percent), India (10 percent) and Emerging Market (31 percent).
However, North America revenue at Rs 1,483.2 crore in Q3 fell by 8 percent compared to year-ago, but sequentially the same increased by 4 percent, aided by higher volume offtake, new launches and favourable forex offset by higher price erosion in some of the key molecules.
During the quarter, Dr Reddy’s launched 10 new products and filed 3 ANDAs with the US Food and Drug Administration. As of December 2018, “cumulatively 103 generic filings are pending for approval with the USFDA (100 ANDAs and 3 NDAs under 505(b)(2) route); of these 100 ANDAs, 59 are Para IVs, and we believe 33 have ‘First to File’ status,” the company said.
Revenues from pharmaceutical services and active ingredients (PSAI) segment increased by 9 percent year-on-year to Rs 593.7 crore in Q3 largely driven by custom pharmaceutical services business, but declined 2 percent sequentially.
At operating level, EBITDA (earnings before interest, tax, depreciation and amortisation) in Q3 grew by 7.4 percent to Rs 865.3 crore and margin expanded by 130 bps to 22.5 percent compared to year-ago, which was a strong beat.