Dr Reddy’s Laboratories reported better than expected net profit of Rs 1,307 crore for the March quarter of FY24, up 36 percent from the year-ago period.
A Moneycontrol poll of eight brokerages pegged the net profit at Rs 1,291 crore.
The Hyderabad-based pharma firm reported a profit of Rs 960 crore in the same quarter of the previous year.
Revenue came in at Rs 7083 crore, up 12 percent from the year-ago quarter of Rs 6,297 crore. The brokerage polls estimated revenue at Rs 7,136 crore.
The company's board also declared a final dividend of Rs 40 (800%) per equity share of Rs 5 each for the financial year 2023-24.
Additionally, Parag Agarwal will retire as the Chief Financial Officer of the Company effective from close of working hours on July 31, 2024. M V Narasimham, currently Dy. Chief Financial Officer of the Company is being elevated to the role of the Chief Financial Officer of the Company with effect from August 1, 2024.
At the operating level, EBITDA rose 14 percent to Rs 1872 crore as against Rs 1631.2 crore last fiscal. EBITDA margin stood at 26.4 percent as compared to 25.9 percent.
Blockbuster cancer drug Revlimid is believed to have contribute around $100-115 million to the Q4 revenue, as estimated by most brokerages, aiding not only the bottomline but also margins.
Dr Reddy's Labs enjoys the highest contribution from Revlimid among all Indian drugmakers selling the drug, due to its first-mover advantage.
Q4FY24 US revenues clocked in at $3 2.6 billion, a Yo Y growth of 29 percent and QoQ decline of 3 percent. Yo Y growth was largely on account of increase in volumes of Dr.Reddy's base business, contribution from new launches, partly offset by price erosion. Sequential decline was due to decrease in base business volumes and price erosion in select brands, the company added.
Q4FY24 India revenues at Rs 11.3 billion, YoY decline of 12 percent and QoQ decline of 5 percent. Adjusted for brand divestment income, on a re-based comparator, Yo Y growth of 11 percent. QoQ decline is on account of lower volumes from base business, the company added.
Dr Reddy's offers a wide, including generics, APIs, custom pharmaceutical services, biosimilars and differentiated formulations. The major therapeutic areas of focus include the central nervous system, gastro-intestinal, oncology, cardiovascular and pain management, with the US, India, West Europe, Russia and the CIS nations being its major markets.
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