Q3FY23 Preview: Dr. Reddy's Laboratories: Revenue seen at Rs62,016 million, PAT at Rs9,919 million

  • 24 Jan, 2023 |
  • 12:15 PM
  • Healthy performance likely on a year-on-year basis

Dr. Reddy’s Laboratories could post healthy growth in US sales during the quarter, following continued momentum in niche products. Domestic business could post 6-7% revenue growth over the year-ago quarter, with gastro, respiratory and cardiac therapies taking the lead. Analysts at IIFL Securities expect revenue to grow 17% over the year-ago quarter and decline 2% sequentially. Exluding Revlimid, growth could be subdued.

Key margin pressures include price pressures in US, high input cost inflation and integration of low-margin Cidmus brand in India.

The company is likely to post 39% in Profit After Tax (PAT) over the year-ago quarter.

Important management insights to watch out for:

  • Outlook on the PSAI segment, amid COVID-related volatility seen globally
  • Growth drivers of the branded generics segment
  • Margin levers and outlook

December 2022 estimates

YoY change

QoQ change

Revenue (Rs mn)




EBITDA (Rs mn)




EBITDA margin 


214 bps

(383) bps

Profit After Tax (Rs mn)




Source: IIFL Research


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