DRL net rises to ₹709 cr. as impairment declines

Pharma major Dr. Reddy’s Laboratories reported consolidated net profit surged to ₹709.3 crore in the December quarter on improved sales in mainstay generics and a sharp decline in impairment charges compared with a year earlier.

Profit was ₹27.9 crore in the year-earlier quarter, when the impairment loss was almost ₹600 crore. Net sales rose to ₹5,103.1 crore (₹4,710.9 crore), as per the results prepared under Indian Accounting Standards.

Total income increased to ₹5,394.1 crore from ₹5,012.4 crore a year earlier. The impairment charge for the quarter was ₹4.7 crore. Net profit and total income, however, were lower on a sequential basis, with the drugmaker having posted ₹995.8 crore and ₹5,992.4 crore, respectively, for the September quarter.

“We delivered a steady performance… with healthy EBITDA and strong cash generation, while continuing to invest in building a pipeline of products across businesses,” said co-chairman and MD G.V. Prasad.

In the global generics segment, which contributed ₹4,456.5 crore to revenue, growth was driven by North America, emerging markets and India.

DRL plans to seek DCGI permission for Sputnik-M jabs for children aged 12-18, CEO-API and Services Deepak Sapra said.

Sales in Europe declines

CFO Parag Agarwal said the results were delivered in the backdrop of number of headwinds industry is facing, including cost escalation in certain commodities, continued price erosion in the U.S and a spike during the quarter in freight cost. We have been able to drive productivity to offset these impacts. We continue to invest in our business.”