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

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

Source: IIFL Research