Dr. Reddy's Laboratories Q3FY22 Preview: Revenue seen at Rs56,071 million, PAT at Rs7,644 million

27 Jan 2022 , 01:18 PM

Result date: 28th January, 2022

Recommendation: Buy

Target price: Rs5,450

(Source: IIFL Research)

Dr. Reddy’s Laboratories (Dr. Reddy’s) is all set to report 14% YoY growth in revenue to Rs56,071 million. Net profit could increase 24% to Rs7,644 million on a YoY basis.

The company’s US business is expected to post a robust performance on QoQ basis, amid doubling of market share in Vascepa from ~4.5% in Q2 to ~9% in Q3. This, coupled with the full quarter impact of the Revlimid Canada opportunity (launched in early September 2021), could drive ~3% QoQ growth in Dr. Reddy’s US sales for the quarter. Revenue of domestic business could get a leg up from sales of Sputnik.
Important management insights to watch out for:

• New launches pipeline
• Outlook on margins

Rs. Million	December 2021 estimates	YoY change	QoQ change
Revenue	56,071	14%	(1%)
EBITDA	12,612	12%	3%
PAT	7,644	24%	(8%)

Source: Company, IIFL Research