Pharma major Dr Reddy’s Laboratories’ net profit increased 36 per cent to ₹1,307 crore in the fourth quarter ended March 31, 2024, as against ₹959 crore in the year-ago period, driven by the growth in US sales.
The Hyderabad-based company’s total revenue grew 12 per cent to ₹7,083 crore, compared to Rs 6296 crore in the corresponding quarter of the previous year.
“This fiscal was eventful and memorable as we delivered a strong performance,“ G V Prasad, Co-Chairman and Managing Director, Dr Reddy’s, told newspersons on Tuesday. Saying that the company, which is celebrating its 40th anniversary, had catered to the diverse health needs of the patients, Prasad said: “Over the next decade, we hope to serve patients with innovative products.”
Parag Agarwal, Chief Financial Officer of Dr Reddy’s, said the company delivered on three major parameters: sales growth, margins, and cash on balance sheet. Referring to a slew of collaborations entered into by the drug maker in FY24, Agarwal said, “Strategic collaborations are key to growth, and we will continue to focus on consumer health, digital therapeutics, and novel drugs.“
In North America, revenue grew by 29 per cent in the quarter under review to $32.6 billion, mainly due to an increase in the volume of the company’s base business and contributions from new launches, partly offset by price erosion.
In Europe, revenue growth was 5 per cent, driven by improvement in base business volumes and new product launches, partly offset by price erosion.
The domestic market, however, witnessed a 12 per cent YoY decline. `Adjusted for brand divestment income, on a re-based comparator, YoY growth of 11 percent,’ the CFO said. There was 9 per cent growth in emerging markets due to new product launches, while the QoQ decline was due to unfavourable forex.
For the full year of FY24, net profit increased 24 per cent at ₹5,568 crore (₹4,506 cr) on 14 per cent increase in revenue at ₹27,916 crore as against Rs 24,587 crore FY 23.
PRODUCTS
During the quarter, Dr Reddy’s launched five new products in the North American region, four of which were launched in the US. A total of 21 products were launched during the year.
During the quarter, it filed nine new Abbreviated New Drug Applications (ANDAs) with the USFDA, taking its annual ANDA filing count to 17. As of March 31, 2024, 86 generic filings were pending approval from the USFDA.
These comprise 81 ANDAs and five New Drug Applications (NDAs) filed under the Section S0S(b)(2) route of the US Federal Food, Drug, and Cosmetic Act. “Of the 86 ANDAs, 50 are Paragraph IV applications, and the company “believes“ that 24 have the ‘First to File‘ status.
Going forward, Dr Reddy’s will continue to look for strategic collaborations and organic and inorganic growth opportunities with investments in building a strong product pipeline, among others.
The board recommended a final dividend of Rs 40 (800 pc) per equity share of Rs 5 each for 2023-24.
NEW CFO
Following the resignation and retirement of incumbent Chief Financial Officer Parag Agarlwal, the board approved the appointment of M V Narasimham, who is now serving as Deputy Chief Financial Officer with responsibilities of global commercial business finance and global taxation as the new CFO with effect from August 1, 2024.