Q1 Results: Dr Reddy's Labs Profit Soars By 18.2% To Rs 1,405 Cr

Dr Reddy's Laboratories on Wednesday announced its consolidated financial results for the quarter ended June 30, 2023. The company reported revenue growth of 29.1 per cent YoY and 7.0 per cent QoQ to Rs. 6,758 crores and above market expectations of Rs. 6,343 crores.

The pharma major's Profit after Tax stood at Rs. 1,405 crores, up 18.2 per cent YoY and up 46.3 per cent QoQ in Q1FY24,  and above market expectations of Rs. 1,008 crores. PAT margin dropped to 20.8 per cent versus 22.8 per cent in the corresponding quarter last year.

The company's EBITDA increased 119.1 per cent YoY and was up by 34.4 per cent QoQ to Rs 2,062 crores, while the EBITDA margin stood at 30.5 per cent (up 1,253bps YoY / up 622bps QoQ) in Q1FY24

Revenue from Global Generics (GG) segment grew 36.0 per cent YoY to Rs. 6,001 crores, primarily driven by annual growth in North America, Emerging Markets, and Europe.

Commenting on the results, Co-Chairman & MD, G V Prasad said, "We delivered strong sales growth and witnessed robust margin expansion in Q1FY24 driven by market share gains & new product momentum in our US generics business and superior performance in Russia. We are on track in executing our strategy, delivering growth while continuing to investin future growth drivers and innovation to create sustainable value."

Dr Reddy's R&D expenses stood at Rs 500 crores (7.4 per cent of sales), with a continued focus on investing in R&D to build a healthy pipeline of new products across markets for both small molecules and biosimilars.