Dr. Reddy's Q3 Results: Profit Rises 75%, Beats Estimates
Dr. Reddy’s Q3 revenue rose 27% to Rs 6,790 crore, compared to an estimate of Rs 6,096 crore.
Dr. Reddy’s Laboratories Ltd.'s third quarter net profit rose, beating analyst estimates.
The Hyderabad-based drugmaker's profit stood at Rs 1,244 crore in the quarter ended December, up 75% over the previous year, according to its exchange filing. That compares with the Rs 908 crore consensus estimate of analysts tracked by Bloomberg.
Sequentially, the profit rose 12%.
Dr. Reddy’s Q3 FY23 Highlights (YoY)
Revenue rose 27% to Rs 6,790 crore, compared to an estimate of Rs 6,096 crore.
Ebitda was up 60% at Rs 1,952 crore against a forecast of Rs 1,547 crore.
Margin was at 28.7% against 22.9% a year ago, and an estimate of 25.4%.
"Our strong financial performance was supported by growth in the U.S. and the Russia markets. We continue to strengthen our development pipeline to reach more patients globally," GV Prasad, co-chairman and managing director at Dr. Reddy's, said in the exchange filing.
Other Highlights (YoY)
Revenue from the mainstay North American market rose 64%, contributing 45% of the total sales. This was driven by new product launches, increase in volumes and a favourable forex movement, which was partly offset by price erosion.
Five new products were launched in the U.S. in the third quarter.
European business rose 6%, accounting for 6% of the revenue.
India revenue was up 10%, contributing 17% of the total revenue for the quarter. The filing said that the growth was driven by increase in sales prices and new product launches, partly offset by reduction in volumes for certain products.
Emerging market sales grew 14%, making up 19% of the revenue for the quarter. Of this, Russia reported a year-on-year sales growth of 45% on account of increase in volumes and prices, new product launches and favourable forex rates. The other geographies reported a year-on-year decline.
Pharmaceutical services and active ingredients segment grew 7%. It made up 11% of the total revenue.
Expenditure on selling, administration and distribution rose 17% to Rs 1,800 crore.
Research and development expenses stood at 7.1% of revenue. A year ago, it was 7.8%. “We continue our focus on investing in R&D to build a healthy pipeline of new products across our markets, including development of products in our biosimilars and generics businesses,” the company said in the filing.
The company has a net cash surplus of Rs 3,400 crore as on Dec. 31.
Shares of Dr. Reddy's Labs closed 1.3% lower prior to the results, compared with a 1.27% fall in the benchmark Sensex.