Dr Reddys PAT more than doubles to Rs 1,093 crore in Q2

Dr. Reddys Laboratories Limited on Friday said its profit after tax (PAT) for the quarter ended September 30 was up 117 percent to Rs 1,092.50 crore. Attributing the increase to one-time revenues from selling the rights of three brands and tax advantage, president, CFO and global head (HR) of the city-based drug-maker Saumen Chakraborty said the PAT was Rs 503.80 crore for the second quarter of FY '19.

Revenue for the quarter under discussion was up by 26 percent at Rs 4,801 crore against Rs 3,798 crore in the same quarter last fiscal, he said. The company garnered Rs 720 crore towards license fee for selling the US and select territory rights for two of their neurology brands Symtouch (sumatriptan injection) and Tosymratm (sumatriptan nasal spray) 10 mg and Zembrace to Upsher-Smith Laboratories, he said.

The drug-maker also had an income tax benefit of Rs 326 crore during the quarter. This is the quarter when we were at the highest of the PAT and revenues. There have been some items which led to that and it includes the sale of our neuro products, Rs 720 crore came up with the sale of PP (proprietary products), he said.

Revenue from the global generics segment was at Rs 3,280 with a year-on-year growth of seven percent, primarily driven by Europe, emerging markets and India. Revenue from North America was Rs 1,430 crore with a flat growth over last year the same quarter while it declined by 13 percent on account of price erosion and lower volumes.

Further impact on account of a voluntary recall of Ranitidine and temporary disruption in supplies due to logistics issues faced during this quarter, he said. The revenue from Pharmaceutical Services and Active Ingredients (PSAI) grew by 18 percent to Rs 710 crore during the second quarter.

The revenue from Europe was at Rs 280 crore during the quarter with 44 percent year-on-year growth, primarily on account of new products and volume traction in base business partly offset by lower realizations. The revenue from India grew by nine percent to Rs 750 crore driven by new products, improved realizations and volume traction in the base business, Chakraborty said.

As of September 30, cumulatively 99 generic filings are pending for approval with the USFDA, the drug-maker said. The company pumped in Rs 370 crore during the July-September quarter towards research and development - 7.6 percent of the revenues.

The drug-maker spent Rs 214 crore towards CAPEX during the first half of the year, the official added. Replying to a query, the CFO said they were expecting an inspection of its Active Pharmaceuticals Ingredients (API) plant (CTO VI) at Srikakulam in Andhra Pradesh by the US Food and Drug Administration officials any time.