Mumbai: Dr Reddy’s Laboratories Ltd, India’s second-largest drug maker by sales, posted a 25% increase in fiscal first-quarter net profit from a year earlier as it benefitted from strong sales in North America.
The Hyderabad-based company’s net profit before adjustments rose to Rs 262.7 crore in the three months ended 30 June, from Rs 209.6 crore in the year-ago period, it said here in a statement on Wednesday.
The profit came on a 17.5% increase in revenue to Rs 1,978.3 crore in the period from Rs 1,683.1 crore in the same quarter last year.
Adjusted for a one-time charge of Rs 13.6 crore in the quarter gone by towards a voluntary retirement scheme for employees and interest paid on bonus debentures, net profit rose 20% from a year earlier to Rs 251.9 crore.
Adjusted earnings before interest, tax, depreciation and appreciation—a measure of operating profitability—was Rs 430 crore, an increase of 27% from a year earlier.
Revenue from North America rose by half to Rs580 crore from Rs390 crore “led by new product launches in the last 12 months and market share improvement in key products,” the company statement said.
The drug maker had been expected to post a net profit of Rs268 crore, based on a Thomson Reuters survey of 11 brokerages.
Dr Reddy’s shares fell Rs33.35, or 2.08%, to Rs1,566.50 at 3:05 pm on the Bombay Stock Exchange. The benchmark Sensex fell 117.39 points, or 0.63%, to 18,536.48.