Dr Reddy's Q1 profit marginally declines to Rs 1,392 crore; revenue rises to Rs 7,673 crore

Dr Reddy's Laboratories reported a slight decline in its consolidated profit after tax, which fell to Rs 1,392 crore for the first quarter ending June 30, 2024. This is a marginal drop from the Rs 1,402 crore profit reported in the same quarter last fiscal year.

The pharmaceutical giant's revenue, however, showed a positive trend, rising to Rs 7,673 crore for the first quarter, up from Rs 6,738 crore in the year-ago period, according to a regulatory filing by Dr Reddy's Laboratories.

"We had a good start to the new fiscal year and our growth and profitability were mainly driven by our generics business," said G V Prasad, Co-Chairman and MD of Dr Reddy's.

Prasad highlighted that the company continues to strengthen its core businesses while making strategic investments in biologics, consumer healthcare, and innovation to drive patient impact and value creation.

The revenue from the North American generics business saw a significant year-on-year increase, rising 20 per cent to Rs 3,846 crore for the first quarter, compared to Rs 3,200 crore in the same period last year.

The revenue from the India generics business also showed growth, reaching Rs 1,325 crore for the first quarter, up from Rs 1,148 crore in the corresponding quarter of the previous fiscal year.

In addition to its financial performance, Dr Reddy's Laboratories announced that its board has approved a sub-division of each share with a face value of Rs 5 into five shares with a face value of Re 1 each.

Furthermore, the board has sanctioned a fund infusion of up to GBP 500 million into its Switzerland-based unit, Dr Reddy's Laboratories SA, through investment in preference shares. This fund will facilitate the subsidiary's acquisition of Nicotinell and related brands by acquiring all the quotas of Northstar Switzerland SARL, currently owned by the Haleon Group.

(With PTI inputs.)