The drug major's consolidated net profit increased 36.26% to Rs 1,307 crore on 12.49% rise in revenues to Rs 7,083 crore in Q4 FY24 over Q4 FY23.
The revenue growth was largely driven by growth in global generics revenues in North America as well as Emerging Markets.
Consolidated profit before tax stood at Rs 1,601.6 crore during the March 2024 quarter, up 20.83% YoY.
EBITDA grew 14.77% to Rs 1,872 crore in Q4 FY24 as against Rs 1,631.1 crore recorded in the corresponding quarter previous year. EBITDA margin improved to 26.4% in Q4 FY24 as against 25.9% posted in Q4 FY23.
Q3 FY24 gross margin stood at 58.6%, up 140 bps YoY, primarily on account of improvement in product mix and productivity cost savings, partially offset by income from non-core brands divested in previous period.
Selling, general & administrative (SG&A) expenses for Q4 FY24 were at Rs 2,047.6 crore, YoY increase of 13.81%, largely on account of higher investments in sales & marketing activities to strengthen our existing brands, new business initiatives including scaling up OTC and consumer health & wellness business, digitalization initiatives and building strong commercial capabilities.
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Research & development (R&D) expenses in fourth quarter of FY24 stood at Rs 687.7 crore, 9.7% of revenue. R&D investments are related to our biosimilar products pipeline, development efforts across generics as well as our novel oncology assets.
During the quarter, revenues from Emerging Markets segment stood at Rs 1,209.1 crore, year on year increase of 9%, attributable to new product launches.
Revenues from India market during the quarter stood at Rs 1,126.5 crore, year on year decline of 12%. During the quarter, the company launched 3 new brands in the country, taking the annual total to 13.
Revenues from North America market was at Rs 3,262.6 crore, year on year rise of 29%. The growth was was largely on account of increase in volumes of our base business, contribution from new launches, partly offset by price erosion.
During the quarter, revenue from Europe market was at Rs 520.8 crore, year on year growth of 5%. The growth was primarily on account of improvement in base business volumes, new product launches, partly offset by price erosion.
Revenues from Global Generics (GG) during the quarter grew 13% YoY to Rs 6,119.1 crore, primarily driven by increase in volumes of our base business, new product launches, partially offset by price erosion in certain markets.
Revenues from Pharmaceutical Services and Active Ingredients (PSAI) rose 6% to Rs 821.9 crore in Q4 FY24, mainly driven by revenues from new products, favourable forex, partially offset by price decline.
Free cash-flow for Q4 FY24 stood at Rs 528.9 crore while net cash surplus for the company was at Rs 6,458.6 crore as on 31 March 2024. Capital expenditure for third quarter of FY24 stood at Rs 500 crore.
Commenting on the results, co-chairman & MD, G V Prasad said, "Our growth and profitability in FY2024 has been driven by our performance in the US. We have also made significant progress on future growth drivers through licensing, collaboration and pipeline building. We will continue to strengthen our core businesses through superior execution as we invest and build the future growth drivers."
Meanwhile, the board recommended a final dividend of Rs 40 per equity share for the financial year 2023-24. The dividend will be paid on or after five days from the date of declaration of the final dividend by the shareholders.
Further, the pharmaco has informed that Parag Agarwal will retire as the chief financial officer (CFO) of the company effective from 31 July 2024, consequent to his decision to expand his involvement in philanthropy for the cause of making a meaningful difference to the lives of the most vulnerable segment of the society the voiceless animals. He will also cease to be a member of the management council and senior management personnel from the same date as well.
Lastly, M V Narasimham, currently Deputy CFO of the company is being elevated to the role of the CFO with effect from 1 August 2024. Presently, he is also a member of the management council and senior management personnel of the company.
Dr Reddy's Laboratories is engaged in providing medicines. The firm operates in three segments: global generics, pharmaceutical services and active ingredients (PSAI) and proprietary products.
The scrip declined 0.66% to close at Rs 6,259.15 on the BSE.
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