Dr Reddy’s Laboratories Q3 report: Net profit of Rs 20 crore

Dr Reddy’s Laboratories on 29th January 2021 reported consolidated net profit at Rs 20 crore for the quarter ended December 2020, in comparison to a loss of Rs 569.7 crore in the year-ago period.

The company said the Q3FY21 PAT had improved mainly due to the non-recognition of deferred tax assets on impairment.

Revenue for the quarter stood at Rs 4,930 crore which had increased by 12% YoY and 1% QoQ. The gross margin was 53.8% against 54.1% YoY and 53.9% QoQ. Selling, general and administrative (SG&A) expenses advanced 14% YoY and 10% QoQ to Rs 1,439 crore. Research and development expenses were Rs 411 crore for the quarter.

Earnings before interest, taxes, depreciation and amortization (EBITDA) was at Rs 1,185 crore and EBITDA margin stood 24% for Q3FY21.

The company’s Co-chairman & MD, G V Prasad stated, “We continued with our growth momentum while maintaining EBITDA margins. The profits were impacted due to trigger based impairment charge taken on a few acquired products including Nuvaring.”

“We are progressing well on phase 3 clinical trials for Sputnik V vaccine in India. We continue to focus on enhancing our product offerings to our patients to serve them better,” he added.

In the geographical segments, Europe and India were in the lead, rising 34% and 26% YoY, respectively.

North America observed growth of 9% YoY. On the other hand, emerging markets advanced by 5% YoY during the December quarter.

Proprietary products and several other segments rose by 53% YoY but pharmaceutical services and active ingredients (PSAI) segment improved by the only % YoY.

Revenue from global generics saw YoY growth of 13% and sequential growth of 2%, fundamentally driven by new product inaugurations and integration of the acquired portfolio from Wockhardt in India.

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