Dr Reddy's Laboratories Q2 net profit rises 14 pc to Rs 1,437 cr

New Delhi, Oct 24 (PTI) Dr Reddy’s Laboratories on Friday posted a 14.5 per cent increase in its consolidated profit after tax to Rs 1,437 crore for the second quarter ended September 30, aided by robust

sales in branded markets.

The Hyderabad-based drug maker reported a profit after tax (PAT) of Rs 1,255 crore in the July-September quarter of the last financial year.

Its revenue rose to Rs 8,805 crore in the second quarter from Rs 8,016 crore in the year-ago period, Dr Reddy’s Laboratories said in a regulatory filing.

“Growth in Q2 was driven by momentum in branded markets and steady contributions from the Nicotine Replacement Therapy (NRT) portfolio, which helped offset the decline in US Lenalidomide sales,” Co-Chairman and MD GV Prasad stated.

The company remains focused on strengthening its core business, advancing key pipeline assets, driving productivity and pursuing business development initiatives, he added.

The drug maker noted that the growth during the second quarter was broad-based across key markets, except for North America Generics, which witnessed higher price erosion in select products and lower lenalidomide sales.

North America sales stood at Rs 3,241 crore, a year-on-year drop of 13 per cent compared to Rs 3,728 crore.

Europe revenue increased to Rs 1,376 crore compared to Rs 577 crore in the year-ago period. India’s revenue gained 13 per cent to Rs 1,578 crore for the July-September quarter. Emerging markets saw a revenue growth of 14 per cent to Rs 1,655 crore in the second quarter.

Pharmaceutical Services and Active Ingredients (PSAI) business vertical reported a revenue of Rs 945 crore against Rs 841 crore, a rise of 12 per cent.

In a virtual press conference, Dr Reddy’s Laboratories CEO Erez Israeli said the company has a pipeline of 100 products for the US market.

He noted that the US market could see single-digit growth while the other markets could witness double-digit growth in the rest of the current fiscal year.

He noted that the drugmaker is looking to introduce semaglutide, used in the treatment of diabetes and obesity, in India and many other markets next year post patent expiration.

Israeli said the company would look at growing its base in double digits across geographies.

The drugmaker will also focus on cost reduction and the launch of semaglutide in various countries, he added.

“By the end of FY26 we hope that we will be able to launch it in several countries. By the end of FY 27 we will likely have semaglutide in tens of countries,” he stated.

Dr Reddy’s shares on Friday ended 0.32 per cent up at Rs 1,284 apiece on BSE. PTI MSS MR