Dr. Reddy’s Laboratories Reports 11% Increase in Net Profit for Q3 Driven by Robust Sales in the US and EU.

Hyderabad-based pharmaceutical company Dr. Reddy’s Laboratories witnessed an 11% year-on-year increase in profit after tax during the third quarter of the financial year 2023-24, reaching Rs 1,378.9 crore. This growth was propelled by a 7% year-on-year rise in consolidated revenue from operations, reaching Rs 7,214.8 crore, attributed to market share gains in North America and expansion in the European market.

On a sequential basis, the company experienced a 5% increase in revenue while the profit after tax declined by 7%. Earnings before interest, tax, depreciation, and amortization (EBITDA) rose by 7.4% year-on-year to Rs 2,110 crore. These figures are reported following the International Financial Reporting Standards (IFRS).

For the Indian business segment in Q3 FY24, revenue stood at Rs 1,180 crore year-on-year, with a 5% growth, but a sequential decline of 1%. Year-on-year growth was mainly driven by revenues from new product launches, while the sequential decline was attributed to lower volumes in the base business.

Commenting on the results, Co-Chairman & Managing Director G V Prasad stated, “We achieved another quarter of record-breaking sales and robust financial performance, supported by the performance of new products and increased market share in the U.S., along with strong performance in Europe. We remain focused on enhancing our core businesses and investing in innovative products through strategic collaborations to meet the unmet needs of patients.”

Regarding emerging markets, Chief Financial Officer Parag Agarwal of Dr. Reddy emphasized, “While emerging markets declined by 2% year-on-year, on a constant currency basis, reflecting true growth, it witnessed a 6% increase. Despite some quarter-on-quarter volatility, we are confident in our ability to drive double-digit growth in this market, propelled by new product launches.”

In Q3 FY24, the North American generics business contributed Rs 3,349.2 crore, marking a 9% year-on-year growth. This growth was attributed to the expansion of market share in existing key products and revenue from new product launches. The European generics business reached Rs 4,970 crores, growing by 15% year-on-year, driven by new product launches and improved base business volumes.

The revenue mix in Q3 FY24 comprised North American generics (46%), European generics (7%), Indian generics (16%), emerging market generics (18%), pharmaceutical services and active ingredients (PSAI) (11%), and others (2%).

As of December 31, 2023, Dr. Reddy’s has 79 generic filings awaiting approval from the US Food and Drug Administration (USFDA), including 75 Abbreviated New Drug Applications (ANDAs) and 4 New Drug Applications (NDAs). Among these, 41 are Para IVs (certifications), and the company believes that 21 of them hold the ‘First to File’ status.

On the same day, Dr. Reddy’s share price experienced a slight decline of 0.07%, closing at Rs 5,840 apiece on the Bombay Stock Exchange (BSE).

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Previous Post

US House Approves Legislation to Enhance Child Tax Credit and Reinstate Business Tax Incentives.

Next Post

Asher Genoot: Pioneering Sustainable Bitcoin Mining with US Bitcoin Corp

Related Posts