05-Mar-2024Today's Market Indicators

Dr Reddy's Lab Q3 PAT soars 76% to Rs 1,247 cr
(17:08, 25 Jan 2023)
Consolidated profit before tax stood at Rs 1,634.6 crore in the quarter, up 68.36% from Rs 970.9 crore posted in Q3 FY22.

EBITDA soared 55.29% to Rs 1,965.8 crore in Q3 FY23 as against Rs 1,265.9 crore recorded in the corresponding quarter previous year. The EBITDA margin stood at 29% in Q3 FY23.

Selling, general & administrative (SG&A) expenses stood at Rs 1,798.1 crore, increased by 17% on a year on year (YoY). This increase was primarily attributable to investments in sales & marketing, annual increments, certain one-off expenses and higher forex rate. Sequentially, the SG&A expenses increased by 9% mainly due to increase in sales & marketing spends and other one-off expenses.

Research & development (R&D) expenses stood at Rs 482.1 crore. As % to revenues - Q3 FY23 was at 7.1% from 7.7% in Q2 FY23 and 7.8% in Q3 FY22. The company said that its 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.

Other operating expense stood at Rs 73.2 crore compared to income of Rs 24 crore in Q3 FY22. Net other expense during the quarter included the loss on sale of asset at Leiden, Netherlands. Net finance expense at Rs 13.9 crore compared to income of Rs 28.9 crore in Q3 FY22.

During the quarter, revenues from Emerging Markets segment stood at Rs 1,309.7 crore, year on year growth of 14% and sequential quarter growth of 7%.

Revenues from India market stood at Rs 1,127.4 crore, year on year growth of 10% and sequential decline of 2%.

Revenues from North America market was at Rs 3,056.7 crore, year on year jump of 64% and sequential growth of 9%.

Revenues from Europe market was at Rs 430.3 crore, year on year growth of 6% and sequential rise of 2%.

Revenues from Global Generics (GG) stood at Rs 5,924.1 crore. Year on year growth of 33% and sequential quarter growth of 6% was primarily driven by new product launches, increase in volumes of base business and favorable forex movement, offset partially due to price erosion in the generic markets.

Revenues from Pharmaceutical Services and Active Ingredients (PSAI) stood at Rs 775.8 crore, year on year growth of 7% and sequential surge of 21%.

Free cash-flow stood at Rs 1,980 crore and net cash surplus for the company is at Rs 3,400 crore as on 31 December 2022.

Commenting on the results, co-chairman & MD, G V Prasad said, Our strong financial performance was supported by growth in the US and the Russia markets. We continue to strengthen our development pipeline to reach more patients globally.

Dr Reddy's Laboratories is engaged in providing medicines. The firm operates in three segments: global generics, pharmaceutical services and active ingredients (PSAI) and proprietary products.

Shares of Dr Reddy's Laboratories declined 1.11% to end at Rs 4,204.55 on the BSE.

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