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DRL posts 77% jump in Q2 profit; beats Street estimates

NEW DELHI: Pharma major Dr Reddys Laboratories on Friday reported a 77 per cent year-on-year (YoY) rise in consolidated net profit at Rs 503.80 crore for the September quarter.

Profit stood at Rs 284.90 crore in the year-ago quarter.

Consolidated net sales for July-September rose 7 per cent to Rs 3,797 crore, from Rs 3,546 crore a year earlier.

Co-chairman and CEO G V Prasad said, "I am encouraged with our performance and progress in the second quarter. Our continuous focus on execution, operational efficiency and cost optimisation are showing results. Looking ahead, our priority will be to resolve pending regulatory issues and continue to work on execution and cost structures that will enable affordable medicines for more patients."

Gross margin for the quarter jumped 55 per cent as against a rise of 55.7 per cent in the June quarter and 53.33 per cent in the year-ago period.

"The sequential decline was attributable to the contribution from gSuboxone sales. ExSuboxone marginal saw improvement in margin led by higher contribution from branded generics markets, favourable forex partially offset by price erosion in some of our key molecules," the company said in a BSE filing.

Cumulatively, 113 generic filings were pending for approval with the USFDA (110 ANDAs and 3 NDAs) as of September 30, the company said.

The company will hold its earnings call at 6 pm today.

Original Article

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