Pharma major Dr Reddy's Laboratories Ltd's consolidated net profit increased seven per cent to Rs 308 crore in the second quarter ended September 30 compared with Rs 286 crore in the year-ago period.
The Hyderabad-based company's revenue increased 21 per cent, to Rs 2,268 crore (Rs 1,870 crore).
The increase in net profit and revenue were driven by robust growth in the sale of generics in North America, Russia and revenue growth in pharmaceutical services and active pharmaceutical ingredients segments, Mr K Satish Reddy, Managing Director and Chief Operating Officer of the company told newspersons here on Tuesday.
Generics play
The new launches and good sales of limited competition products pushed up generics sales in North America by 42 per cent, at Rs 629 crore.
The expansion of over-the-counter sales in Russia, new product launches and growth in key products resulted in 26 per cent and nine per cent growth in revenues from Russia and the domestic market, respectively.
The revenues from Germany, however, declined 27 per cent due to pricing pressures in a tender-based market.
“However, this was expected. The supply of products as part of AOK tender bagged by Dr Reddy's has commenced; the impact of which could be seen in this quarter,'' Mr G V Prasad, Chief Executive Officer, said.
The company had invested Rs 178 crore in expanding the existing facilities.
“Our two plants for making Active Pharmaceutical Ingredients, located in Vizag and Hyderabad, completed inspections from the US Food and Drug Administration without any objections,” Mr Prasad said.
The USFDA, which had earlier issued a warning letter on Dr Reddy's Mexico facility, might take up a re-inspection of the facility shortly, he added.
OUTLOOK
The sales in the second half of the current year could be higher, Mr Satish Reddy said.
Olanzapine, to be launched very soon, would have a 180-day sales exclusivity and hence is expected to drive revenue growth besides new orders from Shreveport and Bristol facilities, Mr Reddy said.
“We will also scale up our focus on research and development on proprietary products, among others,” he added.
Dr Reddy's scrip gained 2.27 per cent on the Bombay Stock Exchange, to end at Rs 1,579.60 on Tuesday.