Dr Reddy's Laboratories reported a better-than-expected 88% year-on-year rise in third quarter consolidated net profit at Rs 513 crore, helped by new high margin generic drug launches in the US and foreign exchange gains due to rupee depreciation.
The pharma company's net sales for the October-December quarter were up 46% from a year ago to Rs 2,769.19 crore.
Dr Reddy's said both net profit and sales were highest ever quarterly sales.
Analysts on average had expected the company to report a net profit of Rs 425 crore on revenue of Rs 2,562 crore, according to a CNBC-TV18 poll.
"Gross profit margin 60% to revenues in Q3 increased largely on account of a favourable mix of high margin Olanzapine revenues and benefit of rupee depreciation," Dr Reddy's said on Friday.
Operating profit margins during the quarter was at 27.3%, sharply up from 15.5% a year ago.
The company had launched two new products in the US -- Olanzapine 20mg and Olanzapine ODT. Olanzapine is the generic version of Eli Lilly's Zyprexa, used to treat psychotic conditions such as schizophrenia and bipolar disorder.
The new drug launches helped Dr Reddy's more than double its North America generics revenue to Rs 1,111.4 crore. Its global revenue from generic drug sales rose 57% from a year ago to Rs 2,128.7 crore.
Volume growth in North America was also strong in the third quarter, helped by other key products like Lansoprazole, Tacrolimus and Omeprazole among others, Dr Reddy's said.
Among other markets, Europe generics revenue rose 14%, Russia and other CIS countries saw 15% growth and revenue from generic drugs sold in India was up 11%. Generics revenue from rest of the world rose 34%, Dr Reddy's said.
In India it launched 6 new generic drugs in the quarter.
That apart during the three-month period, the company had foreign exchange gains of Rs 28.5 crore, compared with a forex loss of Rs 4.5 crore in the year ago quarter.
Dr Reddy's has filed three abbreviated new drug applications (ANDA) in the third quarter. The company said it has 79 ANDAs pending approval from the US Food and Drugs Administration (FDA), of which 10 are first-to-file applications.
Dr Reddy's shares were trading at Rs 1,673.95, up 2.6% in late afternoon trading on NSE on Friday.
Source: www.moneycontrol.com
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