Dr Reddy’s Laboratories' stock surges ~4% on robust December quarter performance

27 Jan 2023 , 10:38 AM

Dr Reddy’s Laboratories’ counter was trading around 4% higher in Friday’s morning session as the company announced its results for the quarter ended December 2022.

Pharma major beat street estimates by announcing a 77% yoy jump in December 2022 quarter PAT at Rs1,247 crore, against a consolidated net profit of Rs706.50 crore in the corresponding quarter last year.

Total revenue from operations increased by 27% yoy to Rs6,770 crore, compared to Rs5,319.70 crore in the previous quarter.

EBITDA (earnings before interest, taxes, depreciation, and amortization) increased 14.3% year on year to Rs1,407.56 crore.

The global generics segment generated Rs5,924.10 crore in revenue. It grew 33% yoy and 6% sequentially, primarily due to new product launches, increased volumes in company’s core business, and favourable currency movement, offset partially by price erosion in its generic markets, according to the company.

Revenue increased by 64% yoy in North America, 6% in Europe, 10% in India, and 14% in emerging markets.

North American revenues totalled Rs30.6 billion. According to Dr Reddy’s Laboratories, it grew 64% year on year, driven by new product launches, volume increases, and favourable forex movement, which was partially offset by price erosion.

While revenues from the European and Indian markets were reported as Rs4.3 billion and Rs11.3 billion respectively.

Following this development, Dr Reddy’s counter was trading 3.42% higher at Rs4,344.60 apiece, against the previous close of Rs4,200.95 on NSE. The scrip opened at Rs4,280 and hit an intraday high of Rs4,380.90 so far in today’s trade.

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