Dr Reddy’s Q4 net surges 71% on generics business

Dr Reddy’s Laboratories reported a 76 percent year-on-year (YoY) jump in the company’s net profit for the quarter ended March 31, 2020.

For Q4FY20, the company’s net profit stood at Rs 764.2 crore against Rs 434.4 crore in the corresponding quarter of the previous financial year.

The numbers bet the estimates of analysts as a poll by CNBC-TV18 had estimated the numbers to the tune of Rs 481.5 crore.

The company’s revenue came in at Rs 4,432 crore also came above the CNBC-TV18 estimate of Rs 4,243 crore.

EBITDA came at Rs 1,001 crore against CNBC-TV18 estimate of Rs 928.4 crore while EBITDA margin came at 22.6 percent against CNBC-TV18 poll of 22 percent.

On the front of revenue, the company’s global generics segment clocked a 20 percent year-on-year jump to Rs 3,639.8 crore.

Among the geographies, Europe’s segment saw a jump of 80 percent YoY in revenue, while North America and Emerging Markets rose 21 percent and 15 percent YoY, respectively. India segment rose 5 percent YoY.

Highlighting the company’s response to COVID-19, Dr. Reddy’s said various initiatives have been undertaken to ensure that our manufacturing-related operations continue unabated enabling us to serve our patients. A few products related to COVID-19 are under development.

The board of directors has recommended a final dividend of Rs 25 (500 percent) per equity share of Rs 5 face value for the financial year 2019-20.

The dividend will be paid on or after 5 days from the date of declaration of the final dividend by the shareholders at the 36th Annual General Meeting (AGM), the company said, adding that in view of the COVID-19 situation, it is working on an AGM date.

“The book closure date for the purpose of the payment of final dividend and AGM date will be announced in due course,” said the company.