Q2FY23 Preview: Dr. Reddy's Laboratories: Revenue seen at Rs58,389 million, PAT at Rs8,869 million

27 Oct 2022 , 07:33 AM

Result date: 28^th October, 2022
Recommendation: Buy
Target price: Rs4,450
(Source: IIFL Research)

Dr. Reddy’s Laboratories (DRL) is likely to post muted set of results for the quarter ended September 30, 2022. Growth in Russia sales, as well as favorable currency would augur well for the company. DRL’s US sales could grow at a healthy pace post launch of gRevlimid. Overall, revenue could grow 11.9% sequentially and 1.3% over the year-ago quarter.

The company’s EBITDA though could come under pressure amid a high base of September 2021 quarter wherein DRL registered one off milestone income.

DRL’s Profit After Tax (PAT) could decline 4.8% over the year-ago quarter and 25.3% sequentially owing to volatility in emerging market currencies.

Important management insights to watch out for:

• Outlook on margins
• US sales excluding gRevlimid

 

Rs. Million	September 2022 estimates	QoQ change	YoY change
Revenue	58,389	11.9%	1.3%
EBITDA	13,492	42.5%	0.9%
Profit After Tax	8,869	(25.3)%	(4.8)%

Source: Brokerage Reports