Dr Reddy’s Q3FY22: Pharma major reports Rs 707 cr PAT, sales surge 8% YoY; margins dip

The pharmaceutical major Dr Reddy’s Laboratories reported healthy third-quarter earnings for the financial year 2021-22 (Q3FY22). Both topline and bottom line registered positive year-on-year growth, while margins slipped marginally during the quarter. 

The company’s net profit came at Rs 707 crore in Q3FY22 as compared to Rs 19.8 crore, as Dr Reddy’s had taken an impairment charge of Rs 597.2 crore in Q3FY21.  

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While the sales showed 8 per cent YoY growth in October-December quarter of FY22 to Rs 5320 crore almost in-line with street’s expectations as against 4929.6 crore in a year ago quarter. 

The EBITDA (earnings before interest, taxes, depreciation, and amortization) came also grew by almost 7 per cent to Rs 1266 crore versus Rs 1185 crore YoY and margins slipped marginally by 20 basis points to 23.8 per cent from 24 per cent YoY. 

In the management commentary, Co-chairman and Managing Director, GV Prasad said, “We delivered a steady performance in Q3 with healthy EBITDA and strong cash generation, while continuing to invest in building a pipeline of products across businesses.”

The company launched major Covid-19 products till now including Sputnik V vaccine, Remdesivir, Avigan® (Favipiravir), 2-deoxy-D-glucose (2-DG) and Molnupiravir.

“We have commercialized all these products in India and few of these products in overseas markets, besides, we have conducted clinical trials for Sputnik Light and are also developing several other covid related drugs for treatment ranging from mild to severe conditions”, Dr Reddy’s said.

The revenues from global generics segment came at Rs 4,450 crore; from North America is at Rs 1860 crore; from Europe it is at Rs. 410 crore and from India at Rs. 1030 crore in Q3.