Reddy Labs Q2FY23 PAT up 12.2% yoy at Rs1,113 crore on sharp growth in operating profits in global generics

29 Oct 2022 , 11:07 AM

Dr. Reddy’s Labs reported 9.41% growth in total revenues for the September 2022 quarter on consolidated basis at Rs6,306cr.

Revenue increase was 20.9% in sequential terms. In terms of verticals, global generics saw 18% growth at Rs5,595 crore while pharma services and API fell -19% at Rs811 crore.

The R&D expenses in the quarter at Rs487 crore accounted for 7.7% of revenues, well above industry average. Within global generics, North America grew at 48% while Europe and India revenues were flat yoy.

North America accounted for 44% of revenues followed by EMs at 19% and Indian markets at 18%.

Consolidated Profit after tax (PAT) for September 2022 quarter was up 12.2% at Rs1,113 crore and it was down -6.3% on sequential basis.

EBITDA came in at Rs1,932 crore with EBITDA margins at 30.6% for the quarter. Gross profit margins stood at 59.1% with the global generics segment enjoying 65% gross margins.

Capex is estimated at Rs250 crore for the quarter while the net debt to equity stands at 0.07X. Net profit margins at 17.65% in Q2FY23 is higher compared to 17.21% in Q1FY22 but lower than 22.77% in Q1FY23.

Financial highlights for Sep-22 compared yoy and sequentially

	Dr Reddy’s Labs
Rs in Crore	Sep-22	Sep-21	YOY	Jun-22	QOQ
Total Income (Rs cr)	₹ 6,305.70	₹ 5,763.20	9.41%	₹ 5,215.40	20.91%
Net Profit (Rs cr)	₹ 1,112.80	₹ 992.00	12.18%	₹ 1,187.60	-6.30%
Diluted EPS (Rs)	₹ 66.89	₹ 59.65		₹ 71.40
Net Margins	17.65%	17.21%		22.77%