Compared to the same period last year, Dr Reddy’s Laboratories, a major player in the pharmaceutical industry, saw a 12% increase in its consolidated net profit, which reached Rs.1,112.8 crore in the second quarter ending September 30, 2022 (Q2FY23). But compared to Q1FY23’s PAT of Rs.1,187.6 crore, Q2 PAT fell by 6%.
The company’s operational revenue in the second quarter of the current fiscal year was Rs.6,305.7 crore, up from Rs.5,763.2 crore in the same quarter last year. In Q1FY23, the revenue was Rs.5,215.4 crore. Despite this, Dr Reddy’s revenue increased by about 9% yoy and 21% qoq in Q2FY23.
In comparison to 53.4% in Q2FY22 and 49.9% in Q1FY23, its gross margin increased to 59.1% in Q2FY23.
In the most recent quarter, EBITDA totaled Rs.1,932 crore, or 30.6% of total revenues.
The company’s Co-Chairman & MD, G V Prasad said “We are pleased with the strong financial performance in the current quarter, driven by the launch of Lenalidomide capsules in the US market. Our focus is to build a robust pipeline with products that improve affordability and access to patients globally. We continue to progress well in our profitability, innovation, and sustainability agenda.”
The launch of the Lenalidomide capsules in the US market (as part of the volume limited settlement with innovator) and sequential quarter growth in Russia sales were the main drivers of Dr Reddy’s revenue from the global generics business, which came in at Rs.55.9 billion, up by 18% yoy and 26% qoq. The price erosion in its generic markets and higher base as a result of Covid product sales in the prior year, however, somewhat offset the growth.
Geographically, the company’s sales from North America stood at Rs.28 billion, up 48% yoy and 57% qoq due to the introduction and expansion of new products as well as favourable changes in exchange rates. Price erosion in some of its major molecules offset some of this growth, however.
While revenue from Europe reached Rs.4.2 billion, representing a 2% year-over-year increase and a 1% sequential quarter increase.
