Dr Reddy Laboratories Reports Strong Q3 Results: Profit Increases by 2% Year-Over-Year to ₹1,413 Crore; Revenue Surges by 16%
Dr Reddy Laboratories, a leading pharmaceutical company, reported its Q3 results on January 23rd, showcasing a 2% year-on-year increase in consolidated profit after tax (PAT) to ₹1,413.3 crore for the quarter ending December 2024. This growth is compared to the ₹1,378.9 crore PAT reported in the same quarter last year.
Revenue from operations for the quarter reached ₹8,358.6 crore, marking a significant 16% YoY increase from the ₹7,214.8 crore recorded in the December 2023 quarter. The company attributed this growth to revenues from the recently acquired Nicotine Replacement Therapy (NRT) portfolio, revenues from India and Emerging Markets.
In Q3, the global generics segment revenue saw a 17% YoY increase, while the pharmaceutical services and active ingredients (API) segment experienced a 5% growth in revenue.
Earnings before interest, tax, depreciation, and amortization in Q3 totaled ₹2,298.2 crore, compared to ₹2,110.7 crore in the same quarter last year and ₹2,280.3 crore in the previous quarter of FY25.
The gross margin for the quarter was reported at 58.7%, slightly lower than the 59.6% in Q2 FY25 but in line with expectations. The company invested ₹6.7 billion in research and development in Q3 FY25, representing 8% of revenues. These R&D investments are focused on developing complex generics, peptides, biosimilars, and novel oncology assets.
Commenting on the results, Co-Chairman and Managing Director, G V Prasad, expressed satisfaction with the double-digit growth achieved, attributing it to the company’s newly acquired NRT business, successful new product launches, and enhanced operational efficiencies. He emphasized the company’s ongoing commitment to meeting patient needs by advancing healthcare through improved access, affordability, and innovation.
Performance for the nine months of FY25 was robust, with the company’s revenue increasing by 15% year-on-year to ₹24,047.5 crore. However, profit experienced a 5% year-on-year decline to ₹4,060 crore.
The EBITDA for the quarter reached ₹6,738.4 crore, surpassing the ₹6,429.3 crore reported in the same quarter of the previous financial year 2023-24.
Dr. Reddy’s Laboratories’ share price closed at ₹1,289.35, marking a 0.54% decrease on the BSE.
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