Dr Reddy’s Laboratories Ltd’s net profit increased 26 per cent at Rs 722 crore in the second quarter ended September 30, 2015 compared to Rs 574 crore in the corresponding quarter of last financial year.
The total revenue of the Hyderabad based company grew to Rs 3,989 crore (Rs 3,587 crore) registering 11 per cent growth.
``We have got a record, highest ever quarterly sales despite headwinds across all segments,’’ Saumen Chakraborty, President and Chief Financial Officer of the company told newspersons at a press conference here on Thursday.
The growth was driven by robust sales in the global generics in North America, India and Europe supported by new products launched in the last 12 months and better management of cost and selling, general and administrative expenses, he added.
Revenue from the US increased 32 per cent driven by contribution from valganciclovir, sirolimus, memantine and habitrol. Revenues from India and Europe grew by 14 per cent and 65 per cent (on a low base) respectively.
The revenue from emerging markets, however, declined by 22 per cent primarily on account of decline in Russia due to depreciation of rouble.
Going forward, the company will focus on organic and inorganic growth and differentiated products, Abhijit Mukherjee, Chief Operating Officer said adding that the second half might not be that ``active’’ as launches will not be many.
In the organic growth, it might look for acquisitions in the emerging markets. ``We have already appointed country heads for Columbia and Brazil and identified four buckets such as proprietary product but did not specifically identify any candidate for acquisition’’ the CFO added.
On the research and development front, Dr Reddy’s had spent Rs 900 crore in first half of the year while the capex was Rs 550 crore. The total capex for the year could be around Rs 1200 crore for the full year.
Its scrip gained 2.59 per cent on the Bombay Stock Exchange on Thursday to end at Rs 4214.05.