Dr.Reddy’s Laboratories (DRL) reported consolidated net profit for the quarter ended June 30 stood at ₹476 crore, a sevenfold increase over the ₹66.6 crore recorded in the year-earlier period.
Total revenue from operations of the Hyderabad-based drug maker increased 12% to ₹3,736.5 crore (₹3,333.2 crore) as per the Indian Accounting Standards (Ind AS).
Improved operational efficiencies, foreign exchange gains as well as the introduction of a generic version of opioid dependence treatment drug Suboxone in US — whose sales had to be suspended in the wake of a court order — primarily contributed to the increase in the profit. Focus on operational efficiencies helped in significantly improving margin profile, said co-chairman and CEO G.V. Prasad who, along with CFO Saumen Chakraborty and COO Erez Israeli, briefed media here on Thursday.
Cautiously optimistic
On the outlook, Mr. Prasad said the company remained “cautiously optimistic. The Subaxone verdict will have some kind of impact on ongoing performance, we wouldn’t have benefit of that in next few quarters.”
On recent lay-offs, Mr. Prasad said “over time, an organisation’s growth and business model improves, changes... one has to look at number of layers and spans. As organisations evolve periodically, they do these things. This is part of that process.”