Dr. Reddy’s Laboratories (DRREDDY) Q2 23/24 earnings summary

Executive summary

• Q2 FY24 revenue reached ₹6,880 cr, up 9% YoY; EBITDA was ₹2,176 cr, up 13%, and PAT was ₹1,480 cr, up 33%.

• Highest-ever sales were supported by new product launches and volume gains; robust EBITDA and ROCE delivery continued.

Financial highlights

• PBT was ₹1,913 cr, up 19% YoY and 4% QoQ; PAT rose 6% QoQ.

• Gross margin was 58.7%, versus 59.1% in Q2 FY23 and 58.7% in Q1 FY24.

• SG&A expenses were ₹1,880 cr, up 13% YoY and 6% QoQ; 27.3% of sales versus 26.3% in Q2 FY23 and Q1 FY24.

• R&D expenses were ₹545 cr, up 12% YoY and 9% QoQ; 7.9% of sales versus 7.7% in Q2 FY23 and 7.4% in Q1 FY24.

Outlook and guidance

• Emerging Markets full-year outlook remained on track; Q2 growth was affected by unfavorable forex and seasonality.

• Strategic priorities include building the product pipeline, strengthening people, digital and process capabilities, productivity, ESG integration and investing in new growth avenues.