Dr Reddys
The company posted disappointing numbers for Q2FY15. Its consolidated net profit for the quarter fell 17% (YoY) at Rs.574 crore though net sales rose 7% at Rs.3588 crore. EBITDA margin fell from 28.3% to 24.3% and this was mainly on account of 10% rise in selling and admin costs, a 37% jump in R&D expenses – R&D expenses at Rs.411 crore has risen from 9% of revenue to 11.5%. Interest outgo for the quarter also rose 44% at Rs.42 crore - The increase is on account of net reduction in forex benefit of Rs.12 crore and net Incremental interest benefit of Rs.25 crore. Tax outgo at Rs.120 crore was up 51%.
Revenue for the quarter was driven mainly by India and RoW, which is primarily Venezuela and North America. Revenues from North America rose 8%, emerging markets grew 14% (In this Russia fell 11%) and India alone as a territory showed a 14% growth. Pharmaceutical Services and Active Ingredients (PSAI) segment reported a 6% rise in revenue and EBIT grew 8%. During the quarter the company launched nine new generic products, filed 10 new product registrations and 28 DMFs globally. On 18th Oct, it entered into an asset purchase agreement with Novartis Consumer Health Inc to acquire title and rights to Habltrol franchise (an over-the-counter nicotine replacement therapy transdermal patch) and to market product in the US territory.