Pharma major Dr Reddy’s Laboratories’ net profit rose 14 per cent to ₹625.7 crore in the first quarter ended June 30, compared to ₹550.4 crore in the corresponding previous quarter.

The revenue of the Hyderabad-based company increased 7 per cent to ₹3,759 crore (₹3,517 crore). Dr Reddy’s shares gained 5.23 per cent on the Bombay Stock Exchange on Thursday to end at ₹3,907.55.

‘Sustained performance’ The increase in profit and revenue was driven by sustained performance in injectables and key products such as Valganciclovir in the North American market.

“In addition, good business mix and focus on cost control also helped,” Saumen Chakraborty, President and Chief Financial Officer, Dr Reddy’s, told newspersons at a press conference here on Thursday.

While accepting that revenue growth was on the lower side, he said the decline in sales was due to a 20 per cent dip in the emerging markets.

This was due to ongoing macro economic uncertainties in Russia and depreciation of the rouble, he added. The sales, however, grew 14 per cent in North America, 43 per cent in Europe and 19 per cent in India.

Abhijit Mukherjee, Chief Operating Officer, said it will take a few quarters for the market in Russia to revive but the company expects the impact on it to be confined only to the quarter under review.

R&D up The research and development expenses during the quarter had gone up to ₹439 crore as against ₹338 crore in the year-ago period, amounting to 11.7 per cent of the revenues. It has filed six Abbreviated New Drug Applications (ANDAs) in the US.

“Out of this believe three will be in ‘First to File’ category,” he said. Cumulatively, the company has 73 ANDAs pending for approvals.

Going forward, the focus will be on organic and inorganic growth, building a complex and specialty product pipeline, among other things the executive said. It is expecting another audit of its Srikakulum unit by the USFDA soon.

The earnings per share increased to ₹36.6 (₹32.2).

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