Dr Reddy’s PAT up 76 per cent in Q4, soft-launches HCQ in India

Dr Reddy’s Laboratories said the drug-maker has reported 76 per cent growth in profit after tax to Rs 764.2 crore for quarter ended March 31, 2010 against Rs 434.4 crore in the corresponding period of FY ’19.

The performance was backed by tax deferment and growth in global generics, Dr Reddy’s said.

President, CFO and Global Head of HR of Dr Reddy’s Saumen Chakraborty told reporters here that the revenues for the quarter under discussion was up by 10 per cent to Rs 4,431.8 crore against Rs 4,016.6 crore in Q4 of last fiscal.

According to the statement from the company, Rs 50 crore was recognised as the deferred tax during the quarter. The revenue from global generics stood at Rs. 3,640 crore a YoY growth of 20 per cent.

The quarter reported the highest sales ever. PAT is higher than PBT (profit before tax), both for the quarter and year. The PAT is higher because of the deferred tax recognition. But for the year it is not only deferred tax recognition but also MAT credit. Overall it has been a good financial year for us, Saumen Chakraborty told reporters.

The Pharmaceutical Services and Active Ingredients (PSAI) segment revenues were up six per cent to Rs 719.5 crore against Rs 676.5 crore in Q4 of FY19.

For the full financial year 2019-20, revenues were up 13 per cent over FY’19 while profit after tax was at Rs 1950 crore up four per cent over previous year, Dr Reddys said.

Revenue for Q4 was at Rs 1,810 crore, a YoY growth of 21 per cent supported by contribution from new product launches and increase in volumes for existing products.

The volumes were higher partially due to COVID-19 related stocking up, he said.

Revenues from India during the quarter was up five per cent and the revenues were partially impacted due to logistics-related disruptions caused by COVID-19 lock-downs.

Revenues from the emerging markets were reported at Rs 800 crore up five per cent in the quarter while revenue from Europe grew by 80 per cent at Rs 340 crore.

Dr Reddys co-chairman and MD GV Prasad Prasad said the company is looking at working with other firms in developing drugs to combat COVID-19.

I think we are looking at working with other companies into developing the products that are around that (COVID-19). We are going to develop Hydroxychloroquine. We have already soft launched those products into Indian market as part of CSR (Corporate Social Responsibility). But we are looking at other opportunities also as they come, Prasad said.

He said FY 20 has been a very positive year for the company.

Progress made during the year includes VAI(voluntary action initiated) status for the company’s one of the plants CTO 6, healthy product pipeline build-up, productivity improvement, and strong financial performance across the businesses.

In a filing with stock exchanges, the drug-maker said the Board of Directors of the company at its meeting held on May 20, recommended a final dividend of Rs. 25 (500 per cent) per equity share of Rs. 5 face value for the financial year 2019-20.