Pharma major Dr Reddy’s Laboratories on Tuesday reported a 1.5 percent fall in net profit for the first quarter of fiscal 2022 at Rs 570.8 crore, hit by lower operating income. The company's net profit in the corresponding quarter of last fiscal stood at Rs 579.3 crore.
Revenue from operations grew 11.4 percent to Rs 4,919.4 crore from Rs 4,417.6 crore, YoY.
At the operating level, EBITDA decreased 12.3 percent to Rs 1,018.8 crore from Rs 1,162.2 crore, while EBITDA margin narrowed by 560 bps to 20.7 percent from 26.3 percent, on a year-on-year basis.
“The financial performance of the quarter has been driven by healthy sales growth. I am confident about improving our margins in the upcoming quarters which will be led by the scale-up of recent launches, new product launches, and productivity,” said G V Prasad, Co-Chairman & MD, Dr Reddy’s Laboratories.
Dr Reddy’s Laboratories’ Q1FY22 earnings missed analysts’ expectations as the CNBC-TV18 poll had estimated a net profit of Rs 700 crore on revenue of Rs 4,991.4 crore. EBITDA was expected at Rs 1,168.5 crore with a margin of 23.4 percent.
“While we continue to sharpen execution in our core business, we are also conducting pilots in areas such as Nutrition, Di tamer, and Digital Health & Wellness, which can be future growth drivers,” said Prasad.
The company’s revenue from Global Generics was at Rs 4,110 crore, registering a growth of 17 percent YoY, driven primarily by branded markets (India and emerging markets) and Europe.
“The overall growth was on account of new product launches and volume traction in the base business, partly offset by price erosion in some of our products adverse forex rates,” the company said in a regulatory filing.
Revenues from North America witnessed a growth of one percent on-year at Rs 1,740 crore but declined one percent sequentially.
Revenues from Europe at Rs 400 crore grew 12 percent YoY and one percent, QoQ. Revenues from India at Rs 1,060 crore were up 69 percent, YoY and 26 percent, sequentially.
Emerging Markets revenues during the quarter rose 14 percent YoY to Rs 910 crore.
Dr Reddy's said it has received a subpoena from American market regulator SEC for the production of documents concerning Commonwealth of Independent States (CIS) geographies.
The matter may result in government enforcement actions against the company in the US and foreign jurisdictions and could lead to civil and criminal sanctions under relevant laws, the company added.
First Published: IST