Dr Reddys

The company posted a very good set of numbers for Q2FY14. The pharma company posted a 69% rise in consolidated net profit at Rs.690 crore on a 16% growth in revenues at Rs.3357 crore. These numbers were much ahead of most analyst expectations.  Revenues from the Global Generics (GG) segment grew 32%, driven by North America (43%), Russia (44%) & other Emerging Markets though revenues from the Pharmaceutical Services and Active Ingredients (PSAI) segment declined 19% (YoY) – North America fell 30%, Europe fell 19%, India fell 7% and RoW fell . Revenue from India grew 8.5% and revenue from Europe remained largely flat.

Research & Development (R&D) expenses were at Rs.30 crore, which was 9% of revenues v/s 6.1% to revenues as in Q2 FY13. Selling, general & administrative (SG&A) expenses rose from 27.8% of revenues to 29% of revenues. EBITDA margin rose to 28.3% from 25.9% (YoY). During the quarter, the company launched 19 new generic products, filed 13 new product registrations and filed 8 DMFs globally. Cash and equivalents, QoQ fell from Rs.2991 crore to Rs.2720 crore. On the other hand, loans and borrowings rose from Rs.4394 crore to Rs.4920 crore.