Dr Reddy’s Laboratories on January 30 reported a net profit of Rs 1,378.9 crore for the December quarter of FY24, up 10.6 percent from the year-ago period.
The company recorded its highest-ever-sales in a quarter during the period according to the management.
A Moneycontrol poll of nine brokerages pegged net profit at Rs 1,383 crore.
The Hyderabad-based pharma firm reported a profit of Rs 1,237.90 crore in the same quarter of the previous year.
Revenue came in at Rs 7,214.8 crore, up 6.6 percent from the year-ago quarter. The brokerage polls had estimate revenue at Rs 7,030.9 crore. The company said that the YoY growth was primarily driven by market share gains for our existing products in North America and continuation of our growth journey in Europe.
The company's EBITDA rose 7.4 percent to Rs 2210.7 crore. The EBITDA margin also expanded slightly to 29.3 percent in quarter under review against 29 percent in the base period.
"We delivered another quarter of highest ever sales and robust financial performance aided by new products performance and base business market share gain in the U.S., new products launch momentum and strong performance in Europe," said Co-Chairman & MD, G V Prasad about the results in a press statement.
Brokerages had expected a marginal rise in revenue, dragged by weak sales from the domestic market and price erosion in other key products in the US. However, the contribution from the blockbuster cancer drug Revlimid was expected to remain stable, offsetting the loss of revenue from other segments.
The North America business, including in the US, recorded 9 percent growth in sales at Rs 3350 crore. The company said that the YoY growth was on account of market share expansion in certain existing key products and revenues from new product launches, partly offset by price erosion. Sequential growth of 5 percent was driven by net increase in volumes of the company’s base business.
India sales was at Rs 1180 crore, with a YoY growth of 5 percent and QoQ decline of 1 percent. The company added that the YoY growth was attributable to revenues from new products launches while QoQ decline was largely on lower volumes in base business.
Revenue from Russia at Rs. 590 crore, YoY decline of 14 percent and QoQ growth of 2 percent.The YoY decline was majorly due to unfavorable currency exchange rate movements & high base business, the company said.
Selling, general & administrative (SG&A) expenses for Q3 was at Rs 2020 crore, up 12 percent year on year. The rise in (SG&A) spend was due to investment in sales and marketing, digitalization, and other business initiatives.
Research & development (R&D) expenses were at Rs 560 crore, accounting for 7.7 percent of total revenue.
During the quarter, Dr.Reddy’s filed 38 Drug Master Files (DMFs) globally. During the quarter, we launched 3 new brands in India. During the quarter, Dr. Reddy’s launched 4 new products in the North American region. It also filed 2 new Abbreviated New Drug Applications (ANDAs) with the US Food and Drug Administration (USFDA) in the period.
Shares of Dr. Reddy's closed marginally up at Rs 5845.75 on BSE earlier.
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