Dr. Reddy's Laboratories Q1 Results: Profit Flat, Meets Estimates
The bottom line of the pharmaceutical company fell 0.9% year-on-year at Rs 1,392 crore in the April-June quarter.
Dr. Reddy's Laboratories Ltd.'s net profit was flat in the first quarter of fiscal 2025, in line with analysts' estimates.
The bottom line of the pharmaceutical company fell 0.9% year-on-year at Rs 1,392 crore in the April-June quarter, according to an exchange filing on Saturday. That compares with the Rs 1,314.8-crore estimate that analysts tracked by Bloomberg had projected.
Dr. Reddy's Laboratories Q1 FY25 Result Highlights (Consolidated, YoY)
Revenue up 13.9% at Rs 7,696 crore vs Rs 6,758 crore (Bloomberg estimate: Rs 7,279 crore).
Ebitda up 3.3% at Rs 2,130 crore vs Rs 2,062 crore (Bloomberg estimate: Rs 1,994.2 crore).
Ebitda margin at 27.7% vs 30.5%.
Net profit down 0.9% at Rs 1,392 crore vs Rs 1,405 crore (Bloomberg estimate: Rs 1,314.8 crore).
Revenue growth was largely driven by growth in global generics revenues in North America as well as India.
In the global generics segment, revenue rose 15% YoY to Rs 6,890 crore. This growth was primarily volume led, aided by new launches and integration of recently in-licenced vaccine portfolio in India, partially offset by price erosion, the company said.
Sequential growth was due to change in product mix partly offset with adverse price erosion.
The company's revenue in the North American markets saw 20% YoY growth to Rs Rs 3,850 crore. It rose 18% quarter-on-quarter.
Growth was largely on account of increase in volumes of company's base business, contribution from new launches, which was partly offset by price erosion, it said.
During the quarter the company launched three new products in the U.S.
In Europe, its revenue saw 4% YoY growth Rs 530 crore, and sequential growth of 1%.
In India, its revenue was up 15% YoY to Rs 1,330 crore in the first quarter. It jumped 18% QoQ.
During the quarter, the company launched 13 new brands in the country, in addition to exclusive rights to promote and distribute Sanofi's vaccine brands.
Emerging Markets And Rest Of The World
The company's revenue from emerging markets rose 3% YoY to Rs 1,190 crore, but fell 2% QoQ in the first quarter.
Growth in the market is attributable to market share expansion and new product launches, partly offset by unfavorable forex and price erosion, it said.
Revenues from Rest of World territories rose 11% YoY to Rs 440 crore, but also declined 11% quarter on quarter. Quarter-on-quarter decline was primarily driven by decline in base business volumes and erosion.
Pharmaceutical Services and Active Ingredients
Revenue from the segment jumped 14% YoY to Rs 770 crore in the April-June quarter. However, it declined 7% quarter on quarter.
Growth was mainly driven by improved volumes in base business, and contribution from new products. While, the quarter on quarter decline was driven by decrease in volumes of certain existing products, the exchange filing said.
During the quarter, the company filed 11 Drug Master Files globally.
Shares of Dr. Reddy's Laboratories closed 1.56% higher at Rs 6,960 apiece on the National Stock Exchange, as compared with a 1.76% increase in the country's benchmark NSE Nifty 50 on Friday.
