Dr Reddy's Q4 profit jumps 76% to Rs 764 cr on higher sales in US, Europe; revenue up 10% at Rs 4,432 cr

Hyderabad: Dr Reddy’s Laboratories Ltd on Wednesday reported a net profit of Rs 764 crore during the January to March quarter, up 76 percent from Rs 434 crore in the corresponding quarter of the previous financial year.

#4QWithCNBCTV18 | @drreddys' net profit for the quarter-ended March propelled by a tax credit for Rs 50 cr Vs an expense of Rs 150.7 cr (YoY) pic.twitter.com/AbPCgnpnLl

— CNBC-TV18 (@CNBCTV18Live) May 20, 2020

The company reported a revenue of Rs 4,432 crore, up 10 percent from the year-ago period. Its global generics segment clocked 20 percent year-on-year jump to Rs 3,640 crore.

The earnings before interest, taxes, depreciation and amortisation (EBITDA) came at Rs 1,001 crore while EBITDA margin was at 22.6 percent.

“FY 20 has been a very positive year for the company,” said co-Chairman and Managing Director GV Prasad.

“Progress made during the year includes VAi status for CTO 6, healthy product pipeline build-up, productivity improvement and strong financial performance across our businesses.”

Among the geographies, Europe’s segment saw a jump of 80 percent in revenue while North America and emerging markets rose 21 percent and 15 percent respectively.

India segment rose 5 percent year-on-year.

Dr Reddy’s said various initiatives have been undertaken to ensure that its manufacturing-related operations continue unabated enabling it to serve the patients.

A few products related to COVID-19 are under development.

The board of directors has recommended a final dividend of Rs 25 (500 percent) per equity share of Rs 5 face value for the financial year 2019-20.

During the quarter, Dr Reddy’s acquired select divisions of Wockhardt Ltd’s branded generics business in India and a few other international territories like Nepal, Sri Lanka, Bhutan and Maldives.

The deal comprising a portfolio of 62 brands in multiple therapy areas was done on a slump sale basis for a consideration of Rs 1,850 crore.