Dr Reddy's Q1 net up 14% at Rs626 crore

Dr Reddy's Laboratories, India's second-largest pharma company, today reported a net profit of Rs626 crore for fiscal first quarter ended 30 June 2015, a 14-per cent increase from Rs550 crore in the April-June quarter of the previous fiscal.

Its operating profit increased 19 per cent to Rs771 crore against Rs 647 crore in the year-ago period, supported by a 290-basis-point increase in its operating margin to 20.5 per cent.

EBITDA improved by 12 per cent to Rs990 crore, helped by an expansion in its operating margin.

Dr Reddy's, a Rs.14,800-crore plus company, reported a 7 per cent increase in its revenues at Rs3,758 crore from Rs3,518 crore in the year-ago quarter.

EPS improved to Rs36.71 from Rs32.34 in the previous-year quarter.

Commenting on the earnings, Dr. Reddy's co-chairman and CEO, GV Prasad said, "Our first quarter results, with YoY growth of 7 per cent in topline and 14 per cent in bottom line, reflects healthy performance. We were able to achieve these results despite limited new launches and headwinds in the form of currency devaluation in key markets."

The sales of global generics products, including operations of biologies business, increased by 7.7 per cent to Rs3,096 crore from Rs2,874 crore. Generics sales in the US improved by 14.3 per cent to Rs1,852 crore from Rs1,621 crore in the corresponding quarter of the previous year due to sustained performance of the injectable franchise and market share gains in key molecules.

European sales of generics improved by 43.3 per cent to Rs191 crore from Rs133 crore. DRL's domestic sales moved up by 18.9 per cent to Rs476 crore from Rs400 crore new products. Integration of the UCB products portfolio completed during the quarter.

Sales in Russia and CIS countries declined by 19.8 per cent to Rs578 crore from Rs720 crore due to shortfall in Russian sales. Its sales in Russia declined by 45 per cent to Rs230 crore, due mainly to macro-economic uncertainties and consequent depreciation of the rouble.

Dr Reddy's shares closed 5.41 per cent higher at Rs 3,913.1 apiece compared to 0.56 per cent gain in the broader Nifty.