Dr. Reddy(US:RDY)2025-10-24 17:21Revenue Performance - Consolidated revenues for the three months ended September 30, 2025, were Rs. 88,051 million, a 10% increase from Rs. 80,162 million in the same period of 2024[214]. - Revenues from the Global Generics segment were Rs. 78,498 million, a 10% increase compared to Rs. 71,576 million in the prior year[216]. - Revenues from the Pharmaceutical Services and Active Ingredients (PSAI) segment increased by 12% to Rs. 9,450 million from Rs. 8,407 million[228]. - Total revenues for the six months ended September 30, 2025, were Rs. 173,503 million, an increase of 11% from Rs. 156,889 million for the same period in 2024[245]. - Revenues from the Global Generics segment increased by 10% to Rs. 154,118 million for the six months ended September 30, 2025, compared to Rs. 140,434 million for the same period in 2024[247]. - Revenues from Europe surged by 138% to Rs. 13,762 million, largely due to the Acquired NRT Business and new product launches[220]. - Revenues from Europe in the Global Generics segment surged by 140% to Rs. 26,506 million for the six months ended September 30, 2025, compared to Rs. 11,035 million for the same period in 2024[250]. - Revenues from India increased by 13% to Rs. 15,780 million, supported by new product launches and increased sales volumes[221]. - Revenues from North America decreased by 13% to Rs. 32,408 million, primarily due to price erosion, despite launching seven new products in the region[217][218]. Profitability Metrics - Gross profit for the same period was Rs. 48,140 million, representing 54.7% of revenues, down from 59.6% in the previous year[229]. - The gross profit margin for the Global Generics segment decreased to 59.1% from 63.1% due to price erosion in existing products[230]. - The PSAI segment's gross profit margin fell to 18.0% from 30.0%, attributed to unfavorable changes in product mix and lower operating leverage[231]. - Profit before tax for the six months ended September 30, 2025, was Rs. 37,397 million, a decrease of 2% from Rs. 37,988 million for the same period in 2024[244]. - Profit for the period increased by 4% to Rs. 28,364 million for the six months ended September 30, 2025, compared to Rs. 27,335 million for the same period in 2024[244]. - Global Generics segment gross profit decreased to Rs. 92,514 million (60.0% of segment revenue) for the six months ended September 30, 2025, down from Rs. 89,680 million (63.9%) for the same period in 2024[260]. - PSAI segment gross profit margin fell to 15.8% for the six months ended September 30, 2025, compared to 26.7% for the same period in 2024, primarily due to unfavorable product mix changes[261]. - Profit for the period increased to Rs. 28,364 million (16.3% of total revenues) for the six months ended September 30, 2025, compared to Rs. 27,335 million (17.4%) in 2024[271]. Expenses - Selling, general and administrative expenses increased by 15% to Rs. 26,436 million for the three months ended September 30, 2025, compared to Rs. 23,007 million for the same period in 2024, representing 30.0% of total revenues[232][235]. - Selling, general and administrative expenses increased by 14% to Rs. 52,083 million for the six months ended September 30, 2025, from Rs. 45,698 million in 2024, representing 30.0% of total revenues[262][265]. - Research and development expenses decreased by 15% to Rs. 6,202 million for the three months ended September 30, 2025, compared to Rs. 7,271 million for the same period in 2024, representing 7.0% of total revenues[233][234]. - Research and development expenses decreased by 8% to Rs. 12,446 million for the six months ended September 30, 2025, down from Rs. 13,464 million in 2024[266]. Taxation and Other Income - The effective tax rate decreased to 22.2% for the three months ended September 30, 2025, from 30.0% for the same period in 2024[239]. - Effective tax rate decreased to 24.2% for the six months ended September 30, 2025, from 28.0% in 2024, with tax expense at Rs. 9,033 million[270]. - Other income, net increased significantly to Rs. 2,673 million for the three months ended September 30, 2025, compared to Rs. 984 million for the same period in 2024[237]. Asset and Cash Flow Management - The company had 75 filings pending approval with the U.S. FDA, including 73 ANDAs and two NDAs, with 45 being Paragraph IV filings[219]. - Impairment of non-current assets charge decreased by 28% to Rs. 662 million for the three months ended September 30, 2025, compared to Rs. 924 million for the same period in 2024[236]. - Net cash from operating activities was Rs. 30,202 million for the six months ended September 30, 2025, up from Rs. 17,812 million in 2024, primarily due to decreased working capital requirements[279]. - Net cash outflows from investing activities were Rs. 28,735 million for the six months ended September 30, 2025, compared to Rs. 39,319 million in 2024[281]. - Principal debt obligations included Rs. 27,936 million in pre-shipment credit and Rs. 13,219 million in working capital borrowings as of September 30, 2025[275].