Dr Reddy's Labs Q3 FY25 net profit beat Street estimates, rising 2.5 percent year-on-year to Rs 1,413.3 crore, helped by a contribution from the recently acquired NRT business. The pharma major's Q3 revenue jumped 16 percent on-year to Rs 8,358.6 crore, again helped by the NRT acquisition.
A Moneycontrol poll of brokerages had expected Dr Reddy's to post flat net profit growth for the quarter at Rs 1,369 crore, and revenue at Rs 7,980 crore. Dr Reddy's share price was down 0.5 percent today ahead of results, ending at Rs 1,289.4 on NSE.
Dr Reddy's said in a statement that the underlying on-year revenue growth excluding NRT was 7.5 percent for Q3 FY25. Its actual Q3 FY25 results included an additional revenue of Rs 605 crore, and profit before tax of Rs 124 crore from the NRT business.
"We delivered double digit growth aided by our newly acquired NRT business, new launches and improved operational efficiencies. We remain committed to addressing patient needs by advancing healthcare through access, affordability and innovation," said co-chairman and managing director G V Prasad in a statement.
The company's EBITDA for the fiscal third quarter was at Rs 2,298 crore, growing at 8.9 percent from a year ago. However the EBITDA margin shrank to 27.5 percent during the October-December quarter from 29.3 percent in the same quarter previous year.
The US market weighed on the company's margins. "Volume growth coupled with new product launches and favourable forex was offset by price erosion on a YoY basis," Dr Reddy's said regarding its North America sales revenue during the quarter, which was recorded at Rs 33,80 crore with a modest growth of 1 percent.
During the quarter, Dr Reddy's launched four new products in the US. Further, the company said it filed three new Abbreviated New Drug Applications (ANDAs) with the USFDA during the nine months ended December 31, 2024.
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