Q4FY22 Preview: Dr. Reddy's Laboratories: Revenues seen at Rs50,746 million, PAT at Rs6,253 million

18 May 2022 , 07:51 AM

Result date: 19^th May, 2022
Recommendation: Buy
Target price: Rs5,000

Dr. Reddy’s Laboratories (Dr. Reddy’s) could witness 3% sequential growth in its US revenues during the March 2022 quarter. It has captured ~13.5% market share in Vascepa during the quarter under review, up from ~9% in December 2021, i.e. its market share has almost trebled from ~4.5% in the June 2022 quarter. According to IU data, Dr. Reddy’s launched Vasostrict AG in February 22 and has garnered ~8% market share in the Vasostrict injectable vials market. This product will be key to the growth of US revenues during the quarter.

The company’s revenue could grow 7%, EBITDA 8% and Profit After Tax (PAT) 15% as compared to the year-ago quarter.

Important management insights to watch out for:
·         Outlook on the generic API business
·         New launch pipeline
·         Likely full contribution from new launches
·         Strategy to gain market share
 

Rs Million	March 2022 estimates	YoY change	QoQ change
Revenue	50,746	7%	(5)%
EBITDA	10,915	8%	(9)%
Profit After Tax	6,253	15%	(12)%

Source: IIFL Research