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Dr Reddy’s Laboratories First-Quarter Earnings Beat Expectations

Indian pharmaceutical major Dr Reddy’s Laboratories (RDY) posted better-than-expected earnings for its fiscal first quarter on Monday, buoyed by rising demand for products within its global generics business segment which helped to offset a decline in two other units.

The Hyderabad-based company reported revenue of $550 million in the three months ended June 30, up 3% from the corresponding quarter of the prior year. This was below the consensus estimate of analysts polled by Capital IQ for 39.98 billion Indian rupees ($580.8 million).

Broken down by business segment, the global generics unit saw sales up 8% year-on-year, while pharmaceutical services and active ingredients sales were down 16% and proprietary products and other revenue was 21% lower.

Within the global generics business, whose sales accounted for about 86% of total group revenue, the biggest pace of growth was seen in Europe, with sales up 19% to 2.4 billion rupees while the region which contributed the largest amount to sales was North America, with revenue of 16.32 billion rupees, up 3% year-on-year.

Earnings per share came in at $0.58 during the period, up from $0.40 a year earlier, comfortably ahead of the Street’s prediction for 27.14 rupees ($0.39).

“This quarter, we grew in most of our key markets and hope to continue this momentum with a sharper focus on performance. We will continue our journey of operational excellence, cost leadership and innovation across our businesses,” GV Prasad, chief executive of Dr Reddy’s Laboratories, said.

Indian pharmaceutical major Dr Reddy’s Laboratories (RDY) posted better-than-expected earnings for its fiscal first quarter on Monday, buoyed by rising demand for products within its global generics business segment which helped to offset a decline in two other units.

The Hyderabad-based company reported revenue of $550 million in the three months ended June 30, up 3% from the corresponding quarter of the prior year. This was below the consensus estimate of analysts polled by Capital IQ for 39.98 billion Indian rupees ($580.8 million).

Broken down by business segment, the global generics unit saw sales up 8% year-on-year, while pharmaceutical services and active ingredients sales were down 16% and proprietary products and other revenue was 21% lower.

Within the global generics business, whose sales accounted for about 86% of total group revenue, the biggest pace of growth was seen in Europe, with sales up 19% to 2.4 billion rupees while the region which contributed the largest amount to sales was North America, with revenue of 16.32 billion rupees, up 3% year-on-year.

Earnings per share came in at $0.58 during the period, up from $0.40 a year earlier, comfortably ahead of the Street’s prediction for 27.14 rupees ($0.39).

“This quarter, we grew in most of our key markets and hope to continue this momentum with a sharper focus on performance. We will continue our journey of operational excellence, cost leadership and innovation across our businesses,” GV Prasad, chief executive of Dr Reddy’s Laboratories, said.

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