NE BUSINESS BUREAU
CHENNAI, JULY 28
Pharmaceutical major Dr Reddy’s Laboratories on Saturday reported a drop of 0.8 per cent in net profit to ₹1.392 crore in April-June quarter for fiscal 2024-25 (Q1FY25), compared to ₹1,335 crore in the corresponding period last year.
The company’s board announced a 1:5 stock split of shares, for which the record date has not yet been set. The Hyderabad-based pharma major’s revenue from operations in the first quarter of current fiscal rose 14 per cent to ₹7,672.7 crore, compared to ₹6,738.4 crore in the year-ago period.
- Revenue from operations in the first quarter of current fiscal rose 14 per cent to ₹7,672.7 crore
- R&D spending made up 8.1 percent of the total revenue in the April-June quarter, up from 7.4 percent in the year-ago period
On the operating front, Dr Reddy’s earnings before interest, taxes, depreciation, and amortization (EBITDA) during the June quarter rose 1.1 per cent to ₹2,160 crore, compared to ₹2,137.2 crore in the same period last year. The margin dropped 80 basis points (bps) to 28.2 per cent from 29 per cent a year-ago.
“We had a good start to the new fiscal year, and our generics business mainly drove our growth and profitability,” said Dr Reddy’s Co-Chairman and MD, G V Prasad. The company continues to strengthen its core businesses and has made strategic investments in biologics, consumer healthcare, and innovation to drive patient impact and value creation,” he added.
Dr Reddy’s also increased its research and development spend in the quarter gone by, focusing on its biosimilars pipeline, and development efforts across generics as well as novel oncology assets, which will support future growth.
R&D spending made up 8.1 percent of the total revenue in the April-June quarter, up from 7.4 percent in the year-ago period.
Revenues from North America grew 20 per cent to ₹3,850 crore, largely due to increased base business volumes and a contribution from new launches, partly offset by price erosion. India’s generics business revenue stood at ₹1,325 crore for the first quarter, compared to ₹1,148 crore in the June quarter of last fiscal year.
Europe revenues were ₹530 crore, recording a four-percent YoY growth, while Indian income stood at ₹1,330 crore, registering a 15-percent growth during the quarter. Emerging markets reported ₹1,190 crore, with three-percent growth. Revenues from Pharmaceutical Services and Active Ingredients stood at ₹770 crore (14-per cent YoY growth) during the first quarter.
The company said its board approved the sub-division of each share with a face value of ₹5 each into five shares with a face value of Re 1 each. The board also approved an investment in preference shares to infuse up to GBP 500 million into its Switzerland-based unit, Dr Reddy’s Laboratories SA. The subsidiary will use the fund to acquire Nicotinell and related brands by acquiring all of Northstar Switzerland SARL’s quotas, which the Haleon Group owns.
