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Pharma major Dr Reddy’s Laboratories Ltd’s consolidated net profit increased 76 per cent at ₹764 crore in the fourth quarter ended March 31, 2020 as against ₹434 crore in the same quarter in the previous financial year as per International Financial Reporting Standards (IFRS).
The total revenue of the Hyderabad-based company rose 10 per cent to ₹4,432 crore compared with ₹4,016 crore in the previous year.
“This has been the highest sales in any single quarter,’’ Saumen Chakraborti, Chief Financial Officer, Dr Reddy’s, told news persons in an online press conference on Wednesday.
The growth was driven by spurt in global generics segment, among others. Revenues from North America Generics increased 8 per cent. “The year was benefited by new launches, scale up of existing products and a favourable forex rate, which was partially offset by price erosion.’’ he said.
In Europe too, the growth was 49 per cent primarily on account of volume traction in base business and new product launches across our markets, including newer markets of France, Italy and Spain. Revenue from India and emerging markets grew by 11 per cent and 14 per cent, respectively.
For FY20 net profit increased 11.2 per cent at ₹1,950 crore (₹1,879 crore) on a total revenue of ₹17,460 crore (₹15,385 crore). The total revenue grew by 13 per cent.
“FY20 has been a very positive year for the company. Progress made during the year includes Voluntary Action Indicated (VAI) status for CTO 6, healthy product pipeline build up and strong financial performance across our businesses,’’ Co-Chairman and MD, GV Prasad said. As of now, the company has no pending issues with the USFDA on any of its plants.
Covid-19 products
The Hyderabad-based company is also developing a few products related to Covid-19 but did not give specific details.
The expenditure on R&D for FY21 will be in the range of 9-10 per cent sales. For FY20, it was at 8.8 per cent of sales.
As on March 31, 2020, Dr Reddys has cumulatively 99 generic filings pending for approval with the USFDA. “Out of the pending ANDAs, 54 are Para IVs, and we believe 30 have ‘First to File’ status,’’ Chakraborti said.
The company has lined up ₹1,000 crore capex for the present financial year in scaling up of Active Pharmaceutical Ingredients (APIs) capacity and expansion of biosimilars portfolio.
Dr Reddy’s scrip gained 5.71 er cent on the BSE on Wednesday to end at ₹3,910.75.
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