Drug major Dr Reddy's Laboratories (DRL) on Thursday reported a 108 percent year-on-year (YoY) jump in net profit at Rs 1,188 crore for the first quarter ended June 30, 2022.

In the corresponding quarter last year, the company posted a net profit of Rs 570.8 crore. CNBC-TV18 polls had predicted a profit of Rs 852.5 crore for the quarter under review.

Total income stood at Rs 5,215 crore during the period under review, up 6 percent against Rs 4,919.4 crore in the corresponding period of the preceding fiscal.

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At the operating level, EBITDA jumped 74.6 percent to Rs 1,779 crore in reporting quarter over Rs 1,019 crore in the corresponding period in the previous fiscal.

EBITDA margin stood at 34.1 percent in the first quarter of this fiscal as compared to 20.7 percent in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortization.

Gross profit margin stood at 49.9 percent, down 230 basis points YoY and 300 bps sequentially, primarily on account of higher commodity prices, adverse leverage on manufacturing overheads, price erosion and forex-related impact, which was partially benefited from brand divestment income.

Other operating income was at Rs 600 crore compared to Rs 50 crore in Q1 FY22. The increase was mainly on account of the recognition of income from the settlement agreement with Indivior Inc, Indivior UK Ltd, and Aquestive Therapeutics, Inc., resolving all claims between the parties relating to the generic buprenorphine and naloxone sublingual film, Dr Reddy's said in a press release.

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The gross profit margin for global generics and PSAI (Pharmaceutical Services and Active Ingredient) business segments stood at 55.0 percent and 15.7 percent respectively.

The revenue for the global generics segment stood at Rs 4,430 crore, up 8 percent YoY, driven by new product launches across most of our businesses and divestment of a few non-core brands in India, partly offset by price erosion in generic markets, and higher base due to COVID product sales in the previous year.

Revenue for the PSAI segment stood at Rs 710 crore, a sequential decline of 6 percent YoY. The year-on-year decline was primarily on account of the higher base in Ql FY22 with Covid product sales, partly offset by new products launched and favorable forex rates. The sequential decline was primarily due to lower volumes of base business, partly offset by new product launches.

Commenting on the results, co-chairman and managing director, G V Prasad said, "Our underlying business revenues adjusted for COVID products contribution during last year have grown well.

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The profits were aided by a few non-recurring incomes, offsetting the near-term headwinds. We continue to improve the health of our core businesses through productivity improvement and robust product pipelines."

The results came after the close of the market hours.

First Published:Jul 28, 2022 5:56 PM IST