Dr Reddy’s reports 22 percent Growth in Profit before Tax
Pharmaceutical major Dr Reddy’s has reported 22 percent jump in profit before tax for fourth quarter and 10 percent growth in revenue. Compared to total revenue of Rs 4,016 crore during the same quarter last year, Dr Reddy’s reported Rs 4,431 as quarterly revenue. Due to an impairment charge of over Rs 1,600 crore in the third quarter, Dr Reddy’s reported 20 percent decline in full year PBT. The company registered 13 percent increase in its full year revenue.
The company management has expressed confidence in its strong health product pipeline which will result in future growth in many segments Dr Reddy’s operates in. Dr Reddy’s registered 20 percent increase in global generics quarterly revenue at Rs 3,693 crore compared to Rs 3,038 crore during the last year. The revenue from emerging markets registered 15 percent growth but Indian sales have been lagging behind with just 5 percent growth.
The company registered 21 percent growth in North American generics business supported by contribution from new product launches and increase in volumes for existing products. The pharmaceutical services and active ingredients (PSAI) segment grew 6 per cent to Rs 719.5 crore during fourth quarter.
Talking about performance of the company during the year, Dr Reddy's co-chairman and managing director G V Prasad said, "FY20 has been a very positive year for the company. Progress made during the year includes VAI(voluntary action in) status for CTO 6, health product pipeline build up, productivity improvement, and strong financial performance across our businesses."
Dr Reddy’s registered 10 percent revenue decline in local market, partially impacted due to logistics related disruptions caused by Covid-19 lockdown. The stock closed positive and several brokerages have suggested BUY call for Dr Reddy’s with long term view.