Results for Dr. Reddy's Q2: Net profit surpasses expectation by 33% YoY to Rs 1,480 cr.

30 Oct 2023 , 11:31 AM

On October 27, Dr Reddy’s Laboratories said that its consolidated net profit for the July–September quarter was Rs 1,480 crore, up 33% year over year (YoY). This was the company’s highest-ever net profit. The pharmaceutical company, situated in Hyderabad, declared a profit of Rs 1,112.80 crore for the previous year.

Additionally, revenue reached a record high of Rs 6,880.20 crore, up 9% from the Rs 6,305.70 crore earned in the same period last year.

Furthermore, the topline and bottom line exceeded the market’s estimates, which were Rs. 6,830.2 crore and Rs. 1,290.7 crore, respectively.

The quarter’s robust profitability was partly due to the offset of the subdued gains in the home market by a 26% increase in sales in Europe and a 13% increase in sales in the US.

G V Prasad, Co-Chairman & MD of Dr. Reddy’s, said in a press statement, ‘We delivered another quarter of strong results with highest ever sales and profits, driven by market share gains & momentum in our US generics business and robust growth in Europe.’

In addition to the net profit and revenue growth, the company had a 12.9% increase in EBITDA, from Rs 1,932.2 crore to Rs 2,181 crore, in the previous year. As a result, the EBITDA margin increased from 30.6% during the base period to 31.7% from July to September.

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