Dr. Reddy’s Laboratories (DRREDDY) Q1 23/24 earnings summary

Executive summary

• Strong start to FY24, with double-digit sales growth, robust EBITDA delivery and record profitability; growth supported by new launches and market-share gains.

• Integrated Mayne Pharma’s acquired generic prescription portfolio, entered Indian trade generics and child nutrition, and advanced biosimilars.

Financial highlights

• Q1 FY24 revenue was Rs. 6,738 cr, up 29% YoY and 7% QoQ; excluding prior-period divestment, growth was 35% YoY and 12% QoQ.

• EBITDA was Rs. 2,137 cr, up 20% YoY and 31% QoQ; PBT was Rs. 1,846 cr, up 26% and 39%; PAT was Rs. 1,403 cr, up 18% and 46%.

• Excluding settlement income in the current and prior year and prior-period brand divestment income, PBT growth was 165% YoY and 68% QoQ.

Outlook and guidance

• Priorities include building a robust product pipeline, strengthening people, digital and process capabilities, investing in new growth avenues, driving productivity and integrating ESG.