Pharma major Dr Reddy’s Laboratories Ltd on Friday, October 27, reported a 33% year-on-year (YoY) rise in consolidated net profit for the quarter ended September 2023 at ₹1,480 crore. The bottomline topped CNBC-TV18's poll of ₹1,272 crore.

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Total revenue in the quarter increased 9% YoY to ₹6,880 crore, primarily driven by North America and Europe. It was ₹6,305.7 crore in the corresponding period of last year. Not just the bottomline, the topline also topped the Street's expectations of Rs 6,820 crore.

Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter rose 12.9% to Rs 2,181 crore, compared to Rs 1,932.2 crore a year ago. The operating margin expanded to 31.7% in the reporting quarter, as against 30.6% in the base period.

The strong Q2 earnings was aided by a 13% sales growth in the US and 26% growth in Europe, which offset the muted gains in the domestic market.

The revenue growth in the North America business was on account of a growing momentum in the company's core portfolio, Mayne integration, favorable move from foreign exchange, which was partly offset by price erosion.

During the quarter, the pharma company also launched four new products in the US.

Meanwhile, Europe's revenue growth was driven by leveraging existing portfolio, contribution from new products and favorable forex, which was partly offset by price erosion.

The domestic market saw a 3% YoY and 3% QoQ revenue growth of Rs 1,190 crore in the second quarter. This growth was largely driven by pricing, new launches and partly offset by NLEM impact and muted demand due to weak acute season. Excluding NLEM, operational sales grew in mid-single digit, the firm said.

"We delivered another quarter of strong results with highest ever sales and profits, driven by market share gains and momentum in our US generics business and robust growth in Europe. We are continuing to strengthen our pipeline both organically and through business development to drive growth and create differentiation," Co-Chairman and MD, GV Prasad said.

Shares of Dr Reddy's Laboratories Ltd closed at Rs 5,420, down 0.036% from the previous day. The stock has rallied 28% since the beginning of this year and has gained over 21% in the last one year.

First Published:Oct 27, 2023 3:38 PM IST