Dr Reddy's Labs Reports 77% Jump YoY In Net Profit In Q3FY23

Dr Reddy's labs, the Indian pharma major headquartered in Hyderabad on Wednesday announced its consolidated financial results for the third quarter that ended 31st December 2022, the pharmaceutical company registered a 27 per cent rise in its consolidated revenues year on year and a 7 per cent jump quarter on quarter in its revenues. The company's revenue for the third quarter stood at Rs 6,770 crores against Rs 5,3197 crores in the same quarter last year.

The company recorded a net profit of Rs 1,247 crores in quarter three of the financial year 2023(Q3FY23) against Rs 706 crores recorded in the corresponding quarter in the previous year, a 77 per cent jump year on year. Whereas the profits grew 12 per cent quarter on quarter.

The pharma major's EBITDA surged by 55 per cent year on year and 2 per cent quarter on quarter to be recorded at Rs 1,966 crores for the December quarter.

The company's revenue from global generics sales amounted to Rs 5,920 crores, up by a 33 per cent YoY growth and sequential quarter growth of 6 per cent which the company said were primarily driven by new product launches, an increase in volumes of base business and favourable forex movement, offset partially due to price erosion in the generic markets.

The company's sales from North America amounted to Rs 2,060 crores, whereas its sales in Europe, India and Russia amounted to Rs 430 crore, Rs 1,130 crore and Rs 690 crores respectively.

On the other hand, the company's S&GA expenses were recorded at 1,800 crores, a 17 per cent increase year-on-year. This the company said was primarily attributable to investments in sales and marketing, annual increments, certain one-off expenses and higher forex rate. 

The company's R&D spending for the quarter stood at Rs 482 crores, amounting to 7.1 per cent of the total sales of the company against Rs 486 crores in the previous quarter.  

Commenting on the results, Co-chairman and 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."