Higher tax outgo dents Dr Reddy’s Q1 net profit

HYDERABAD: Despite clocking its highest ever quarterly revenues, higher tax outgo pulled down Hyderabad-based pharma major Dr Reddy’s Laboratories’ consolidated net profit for the first quarter ended June 30, 2024, marginally (1%) to Rs 1,392 crore from Rs 1,402.5 crore in the corresponding quarter of last year.

The company’s revenues for Q1FY25 registered a 14% jump at around Rs 7673 crore during the quarter as against Rs 6738 crore in Q1FY24.

While revenues from global generics grew 15% to nearly Rs 6,886 crore in Q1FY25 from Rs 6,008 crore in Q1FY24, that from pharmaceutical services and active ingredients went up 14% to around Rs 766 crore in Q1FY25 as compared to Rs 671 crore in Q1FY24.

Revenues from the North American generics market, which grew a robust 20% to Rs 3,836 crore in Q1FY25 from Rs 3,200 crore in Q1FY24, accounted for half the company’s total revenues during the quarter.

Revenues from the India market accounted for the second highest contribution to revenues at 17% with a healthy 15% growth, albeit on a smaller base, to Rs 1,325 crore during the quarter as against Rs 1,148 crore in Q1FY24.

This was followed by emerging markets with 15% share of revenues despite just a marginal 3% rise in revenues at Rs 1,188 crore in Q1FY25 from Rs 1,155 crore

Dr Reddy’s co-chairman & managing director G V Prasad said the company had a good start to the new fiscal year with growth and profitability being mainly driven by the generics business. “We continue to strengthen our core businesses and have made strategic investments in biologics, consumer healthcare and innovation to drive patient impact and value creation,” he said.
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