Dr Reddy's Q3 results: Company reports over 75% YoY jump in consolidated net profit, revenues up 27%

Dr Reddy's Laboratories Ltd on Wednesday reported a 76.5 per cent year-on-year jump in its consolidated net profit for the quarter that ended on December 31, 2022.  The company’s Profit after Tax (PAT) stood at Rs 1,247.1 crore for the reporting quarter as against Rs 706.50 crore posted in the same quarter, in a year ago period.  

Revenues of this Hyderabad-based drug maker during the October-December quarter were up by 27 per cent to Rs 6,770 crore, the company said in its filing to exchanges. They were at Rs 5,319.7 crore in the third quarter of FY2022.   

Dr Reddy's gross margin witnessed a 59.2 per cent rise from 53.8 per cent reported in the year-ago period. DRL reported EBITDA at Rs 19.7 billion in the quarter ending in December.  

Commenting on the results, co-chairman and Manging Director of Dr Reddy's Lab G V Prasad said, "Our strong financial performance was supported by growth in the US and the Russia markets. We continue to strengthen our developmental pipeline to reach more patients globally". 

During the third quarter, gross profit increased by approximately 545 basis points over the same period previous year driven mainly due to new product launches with higher margins, favourable products mix and favourable forex movement which was partly offset by price erosion, Dr Reddy's said in a press release.

Revenues earned in the global generics segment stood at Rs 59.2 billion. North America market witnessed a revenue growth of 64 per cent  YoY, Europe 6 per cent , India 10 per cent  and emerging markets 14 per cent . 

Shares of the company closed at Rs 4196.40, down 1.3 per cent tracking the overall weakness in the stock markets.  

In the early trade today, investor sentiments turned positive on Dr Reddy’s Laboratories ahead of its Q3 results

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