Dr Reddy's beats quarterly profit estimate on India market lift
RDY•Dr Reddy's quarterly net profit fell to 9.25 billion rupees, but exceeded analysts' 7.49 billion rupee estimate as India revenue rose 17.2%. Revenue from operations fell 1.6% to 86.98 billion rupees.
1. Profit beats estimate
Dr Reddy's Laboratories reported net profit after tax of 9.25 billion rupees for the quarter ended September 30, down from 13.47 billion rupees a year earlier but above analysts' average estimate of 7.49 billion rupees.
2. US sales decline
Revenue from operations fell 1.6% to 86.98 billion rupees as pricing pressure and competition weighed on its key US market. North America revenue fell about 23% to 24.89 billion rupees. The company recorded a 710 million rupee revenue hit from a semaglutide recall in Canada, following 2.4 billion rupees in provisions in the previous quarter over quality issues with the drug.
3. India remains bright spot
Revenue from India rose 17.2% to 18.5 billion rupees, boosted by demand for chronic therapy drugs. The company has also expanded into women's health through the acquisition of hormone replacement therapy brands. Declining Lenalidomide sales and ongoing pricing pressure in generics added to the slowdown.
