PAT down 30% in Q2; no impact of cyber attack: Dr Reddy's Lab
PAT down 30% in Q2; no impact of cyber attack: Dr Reddy's Lab

The profit after tax (PAT) of Dr Reddys Laboratories Limited for the quarter ended on September 30, 2020, was down by 30 per cent at Rs 762.3 crore compared to Rs 1,092.5 crore during the corresponding quarter last fiscal.

The consolidated revenue for the quarter under discussion was up by two per cent at Rs 4,896.7 crore, the president-Chief Financial Officer (CFO) and global head (human resources) of Dr Reddys, Saumen Chakraborty told a press conference here

It was Rs 4,800.9 crore in the second quarter of FY '20, the drug-maker said in a filing with the stock exchanges.

The company had the advantage of out-licensing some of the products and also tax benefits during the second quarter of the last fiscal, he said explaining the reasons for drop in the PAT in the last quarter.

Replying to a query on the recent cyber attacks on the companys IT infrastructure, Chakraborty said the company is working with international cyber experts and also law enforcement agencies on the issue.

"There is not much impact on our operations. Recovery and restoration of all applications and data are underway. All critical operations are being enabled in a controlled manner," he said.

On October 22 this year, the company experienced an information security incident involving a ransomware attack and consequently isolated the affected IT services.

Chief Executive Officer of Dr Reddys, Erez Israeli said the company is expected to complete the phase-2 trials of COVID-19 vaccine Sputnik V by December and phase-3 may be finished by March-end or beyond depending on the situation.

Israeli further said the company needs to engage 100 and 1,500 volunteers for phase-2 and phase-3 trials respectively.

Dr Reddy's Laboratories Ltd and Russian Direct Investment Fund, Russia's sovereign wealth fund, recently received approval from the Drug Control General of India to conduct an adaptive phase 2/3 human clinical trial for Sputnik V vaccine in India.

Commenting on the results, co-chairman and managing director of the company G V Prasad said, "We are pleased to report continued growth across all the markets and improved productivity which is reflected in the healthy EBITDA (earnings before interest, taxes, depreciation and amortisation) margin and RoCE (return on capital employed)." "Our research teams are working on several potential remedies for COVID-19 in addition to the already launched products," he said.

The companys revenues from global generics segment during the quarter under discussion were at Rs 3,980 crore, year-on-year growth of 21 per cent driven primarily on account of new product launches, volume traction in the base business and integration of the acquired business from Wockhardt in India.

Revenues from Europe and India stood at Rs 380 crore (36 per cent growth on Y-o-Y basis) and Rs 910 crore (21 per cent growth Y-o-Y) while it was Rs 860 crore from the emerging markets (4 per cent Y-o-Y growth).

Dr Reddys spent Rs 440 crore on research and development in Q2.

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