Dr Reddy’s Lab Q4FY24 net profit up 36% YoY to Rs 1,307 cr
Mumbai: Hyderabad-based pharma major Dr Reddy’s Laboratories recorded a net profit of Rs 1,307 crore in the March quarter of FY24, up 36 percent from the same period last year when it reported a profit of Rs 960 crore.
Revenue for the quarter stood at Rs 7,083 crore, up 12 percent from Rs 6,297 crore in the corresponding quarter of the previous year. The brokerage polls had estimated revenue to be Rs 7,136 crore.
The company's board announced a final dividend of Rs 40 (800%) per equity share of Rs 5 each for the financial year 2023-24.
Parag Agarwal is set to retire as the Chief Financial Officer of the company effective from the close of working hours on July 31, 2024.
M V Narasimham, the current Deputy Chief Financial Officer, will assume the position of Chief Financial Officer from August 1, 2024.
At the operational level, EBITDA (earnings before interest, taxes, depreciation, and amortization) saw a 14 percent increase to Rs 1,872 crore compared to Rs 1,631.2 crore in the previous fiscal year. The EBITDA margin stood at 26.4 percent, up from 25.9 percent.
The blockbuster cancer drug Revlimid is estimated to have contributed approximately $100-115 million to the revenue in the fourth quarter, Moneycontrol reported citing brokerages' estimates.
This not only bolstered the bottom line but also improved margins impressively.
Dr. Reddy's Laboratories enjoys the highest contribution from Revlimid among all Indian drugmakers selling the drug, owing to its first-mover advantage.
In the fourth quarter of FY24, US revenues reached $3.2 billion, a year-on-year growth of 29 percent but a sequential decline of 3 percent.
The year-on-year growth was primarily driven by an increase in volumes of Dr. Reddy's base business, contributions from new launches, albeit partially offset by price erosion.
The sequential decline was attributed to decreased base business volumes and price erosion in select brands.
Meanwhile, India revenues in Q4FY24 stood at Rs 11.3 billion, witnessing a year-on-year decline of 12 percent and a quarter-on-quarter decline of 5 percent. Adjusted for brand divestment income and based on a re-based comparator, there was a year-on-year growth of 11 percent. The quarter-on-quarter decline was attributed to lower volumes from the base business.
Dr. Reddy's Laboratories offers a wide range of products including generics, APIs, custom pharmaceutical services, biosimilars, and differentiated formulations.
Its major therapeutic areas of focus include the central nervous system, gastrointestinal, oncology, cardiovascular, and pain management.
The company's major markets include the US, India, West Europe, Russia, and the CIS nations.
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