Dr Reddy's Q1 Results: Net profit rises 18% YoY to Rs 1403 crore
Dr Reddy's on Wednesday said it plans to use net surplus cash for acquisitions and product innovations targeting India, emerging markets and US. The drug maker has a net cash surplus of Rs 5000 crore as of June 30, 2023. «A part of it would be used for India and emerging markets primarily for licensing and product acquisitions,» said Erez Israeli, CEO of Dr.
Reddy's. «We are looking at India as a primary market for innovations, we are also looking at assets like Mayne (Pharma),» Israeli added. Dr Reddy's acquired Australia-based Mayne Pharma in February this year paying $105 million that gave the company access to commercialised and ANDA pipeline, primarily focusing on women's health in the US market.
Dr Reddy's on Wednesday reported an 18% year-on-year (YoY) jump in net profit to Rs 1403 crore in Q1FY24 led by robust sales of generic Revlimid, new products, Mayne portfolio and Russia. The company reported net profit of Rs 1188 crore during the corresponding quarter of the previous year. Revenue rose 29% YoY to Rs 6738 crore in Q1FY24.
The earnings before interest, tax, depreciation and ammortisation (EBITDA) rose to 20% YoY to Rs 2137 crore in Q1FY24, while the EBITDA margins YoY declined 240 basis points to 31.7% North America which is largely US, that constitutes 47% of revenue grew 79% YoY to Rs 3199 crores in Q1FY24. «The growth was primarily on account of new product launches, continued momentum in existing products, favorable forex rates movement, partly offset by price erosion,» Dr Reddy's said. Revenue from Russia for the quarter grew 75% YoY to Rs.
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