Dr Reddy’s Q2 profit doubles to Rs 1,093 crore

Hyderabad (Telangana) [India], Nov 1: Dr Reddy’s Laboratories on Friday reported doubling its profit to Rs 1,093 crore in the second fiscal quarter (July to September) compared to Rs 504 crore in the same period of last year.

The 117 per cent jump in Q2 FY20 profit was pushed up by better operating income, a tax write-back of Rs 326 crore and a licence fee worth Rs 723 crore for selling territory rights for two neurology brands to US-based Upsher-Smith Laboratories. Dr Reddy’s said its revenue stood at Rs 4,801 crore, up 26 per cent from Rs 3,798 crore in Q2 FY19.

“I am pleased with our performance across the businesses and strong cash generation during the quarter,” said Co-Chairman and Managing Director G V Prasad. “We are progressing well in the execution of our strategy and in our transformation journey on quality and efficiency,” he said in a statement.

The pharmaceuticals major said its gross margin stood at 57.5 per cent in the second quarter of 2019-20 as against 51.7 per cent in the previous quarter and 55 per cent in the quarter ended September 30 last year. The research and development expenses totalled Rs 366 crore, about 7.6 per cent of the revenues.

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