Dr Reddy's posts 77 per cent rise in PAT

Hyderabad: Pharmaceutical major Dr Reddy’s on Friday said its profit after tax (PAT) for the July-September quarter was up by 77 per cent to Rs 504 crore against Rs 387.6 crore in the second quarter of FY18. 

Speaking to the media, Dr Reddy’s chief financial officer Saumen Chakraborty said, “There are multiple reasons for the growth in the profit. One is better business mix. And then product mix has also played a big role. Year-on-year improvement (of gross margins) primarily aided by contribution from new launches, improved leverage, better product mix coupled with favorable foreign exchange. This was partially offset by higher price erosions due to increased competitive intensity in some of our key molecules in the US.” 

Mr Chakraborty added, there was a gain of Rs 46.4 crore on account of sale of rights relating to Cloderm brand (including its authorized generic) and profit on sale of antibiotic manufacturing facility in Bristol, USA.

The company also its revenues from the global generics segment in the second quarter rise 7 per cent year on year to Rs 3,050 crore over the same quarter last year, primarily driven by contributions from emerging markets, India and favorable forex.

In a statement, CEO G.V. Prasad said that the continuous focus on execution, operational efficiency and cost optimisation are showing results.