Dr Reddy's Laboratories to spend Rs 1500 crore in capex in FY 23

7 Nov 2022 , 11:49 AM

According to CFO Parag Agarwal, Dr Reddy's Laboratories has set aside around Rs1,500 crore in capital expenditures for FY23, the majority of which is planned to be used to expand the company's biosimilar and injectable business capacities.

The Hyderabad-based pharmaceutical company also intends to use the funds to expand the capacity of current plants, stabilize R&D pursuits, and make more investments in digital initiatives.

The chief financial officer stated in an investor call that the capital for the entire year "is probably going to be around Rs1,500 crore in that range, and a lot of this capex is towards developing capacity for our biosimilar business and for our injectable business."

Erez Israeli, CEO of Dr. Reddy's Laboratories, provided additional details on the overall strategies, stating that the R&D department is concentrating "as much as possible on differentiated medicines, on biosimilars, on things that have higher potential."

He continued by saying that the corporation is also introducing its goods, particularly the injectables, in new areas.

Therefore, Israeli stated, "the value that may be obtained from R&D should be higher in the future.

For the September quarter of 2022—2023, Dr. Reddy's Laboratories reported a combined profit after tax (PAT) of Rs1,113 crore and revenue of Rs6,306 crore.

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