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Pharma major Dr Reddy’s Laboratories on Friday posted a 45 per cent year-on-year increase in net profit at Rs 485 crore for the December quarter of 2018-19.
Net profit in the same quarter a year ago came in at Rs 334.40 crore.
Analysts in an ET Now poll had projected a profit of Rs 381 crore.
Let's check out five takeaways from Dr Reddy’s third quarter earnings.
Top line: Revenue for the quarter advanced marginally 1 per cent YoY to Rs 3,850 crore, the company said in a regulatory filing.
Gross margin: The figure read 53.90 per cent in Q3 FY19 over 56.30 per cent in Q3 FY18.
This stood at 55 per cent for the September quarter.
Decline in gross profit margins both year-on-year and sequentially is largely on account of price erosion in some of the key molecules in the US partly offset by favourable foreign exchange and better manufacturing overhead leverage.
RD expenses: Expenditure on research and development stood at Rs 367 crore in Q3 FY19, 9.5 per cent of revenues.
Management-take: CEO and Co-chairman G V Prasad said: "We continued to improve our performance in the third quarter of FY19, supported by significant growth in emerging markets and India, pick-up in new product launches, and improvements in cost structure.
We are on track towards delivering sustainable and profitable growth."
Operating expenses: Total operating expenditure decreased to Rs 1,502.30 crore during the quarter under review against Rs 1,640.20 crore in the same period last year.
