 "Dr Reddy's")
Hyderabad-based pharmaceutical firm Dr Reddy’s Laboratories on Tuesday reported a consolidated net profit of Rs 1,307 crore for the quarter ending on March 31 (Q4) in the financial year 2023-24 (FY24). This was a 36 per cent increase in profits year-on-year (Y-o-Y) from Rs 959.2 crore reported during the same period last year. Sequentially, however, the firm reported a five per cent drop in profit from Rs 1,378.9 crore.
The company reported a 12 per cent rise in Y-o-Y consolidated revenue at Rs 7,083 crore, compared to Rs 6,296.8 crore reported in Q4FY23. Sequentially, revenue dropped two per cent from Rs 7,214.8 crore in Q3.
Growth was driven by strong sales in the United States and European markets. Sales in Europe rose by five per cent, and the US recorded a 29 per cent increase in the generics business, the company's largest segment.
US sales were boosted by strong demand for Lenalidomide, a generic version of Bristol-Myers Squibb's cancer drug Revlimid, launched in 2022.
On the domestic front, Q4FY24 India revenues stood at Rs 1,130 crore, reflecting a year-on-year decline of 12 per cent and a sequential decline of five per cent. However, adjusting for brand divestment income on a re-based comparator, the company reported a year-on-year growth of 11 per cent. The quarter-on-quarter decline was primarily due to lower volumes from the base business.
The earnings before interest, tax, depreciation and amortisation (Ebitda) for the quarter grew by 14.7 per cent Y-o-Y to Rs 1,872 crore. The Ebitda margin increased to 26.4 per cent from 25.9 per cent last year.
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For the entire financial year, the pharmaceutical firm reported a consolidated profit of Rs 5,568.4 crore, a 23.6 per cent increase Y-o-Y from Rs 4,506.7 crore in FY23. Meanwhile, revenue for FY24 was up 13.5 per cent to Rs 27,916.4 crore from Rs 24,587.9 crore at the end of FY23.
Commenting on the results, co-chairman and managing director G V Prasad said: “Our growth and profitability in FY24 have 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 in and build the future growth drivers.”
In addition to its quarterly earnings, Dr Reddy’s Laboratories announced changes in its leadership team. Parag Agarwal is set to retire as the chief financial officer of the company effective after July 31, 2024. M V Narasimham, currently serving as the deputy chief financial officer of the company, will assume the role of chief financial officer from August 1, 2024.
The company board has recommended a final dividend of Rs 40 per equity share of Rs 5 each for the financial year 2023-24. The dividend will be paid on or after five days from the date of the declaration of the final dividend by the shareholders at the upcoming 40th Annual General Meeting (AGM) of the company.
Shares of Dr Reddy's closed trading at Rs 6,277.1 on Tuesday ahead of the company's quarterly earnings.
