Dr. Reddy’s Laboratories (DRREDDY) Q3 23/24 earnings summary

Executive summary

• Q3FY24 revenue ₹7,215 Cr, up 7% YoY and 5% QoQ; growth supported by volume gains and new launches.

• EBITDA ₹2,111 Cr (29% of revenue), PBT ₹1,826 Cr (25%) and PAT ₹1,379 Cr (19%); all increased YoY and QoQ.

• Management highlighted a diversified growth strategy focused on core businesses, differentiated products, quality, efficiency and ESG.

Financial highlights

• Revenue ₹7,215 Cr, up 7% YoY and 5% QoQ; EBITDA ₹2,111 Cr, up 7% YoY and 3% QoQ.

• PBT ₹1,826 Cr, up 12% YoY and 5% QoQ; PAT ₹1,379 Cr, up 11% YoY and 7% QoQ.

• Gross margin 58.5%, down 73 bps YoY and 18 bps QoQ; SG&A 28.0% of revenue, up 12% YoY and 8% QoQ.

• R&D expense 7.7% of revenue, up 15% YoY and 2% QoQ.

Segment performance

• Global Generics revenue ₹6,310 Cr, up 7% YoY and 3% QoQ; PSAI revenue ₹784 Cr, up 11% YoY and QoQ.

• North America revenue ₹3,349 Cr, up 9% YoY and 5% QoQ; growth came from launches and market-share gains, with 13.6% growth vs. 4.4% for the US generic market.

• India revenue ₹1,180 Cr, up 5% YoY and 1% QoQ; growth was 7.0% vs. 9.8% for IPM, driven primarily by launches.

• Emerging Markets revenue ₹1,283 Cr, up 2% YoY and 6% QoQ; constant-currency growth was 3% YoY and 7% sequentially, with forex and timing weighing on reported growth.

• Europe revenue ₹497 Cr, up 15% YoY and 6% QoQ; PSAI growth was driven by launches and improved mix, with double-digit growth excluding prior-period COVID product sales.