On January 30, 2024, Dr. Reddy’s Laboratories Limited (BSE, NSE: DRREDDY, NYSE: ROY) announced its Q3 2023-24 results, registering yet another quarter of the Company’s highest-ever Sales, plus a base business market share gain in North American markets.
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Dr. Reddy Main Financial Q3 Result Takeaways
Delivering sequential as well as resilient growth, the key player in the Pharma sector displayed the following in terms of metrics (reported in ₹ Mn by the Company) in Q3 FY24 and 9M FY24:
- The Company’s Revenues reached ₹72,148 Mn in Q3 FY24, up by 7% YoY and 5% QoQ. For 9M FY24, Revenues were at ₹208,334 Mn, a rise of 14% YoY.
- The Company’s Gross Margin for Q3 FY24 stood at 58.5% versus 59.2% in Q3 FY23.
- SG&A Expenses were up by 12% on a YoY basis and up by 8% on a QoQ basis, at ₹20,228 Mn.
- R&D Expenses for Q3 FY24 were at ₹5,565 Mn Rs. 15,996 Mn, accounting for 7.7% of Revenues.
- The EBITDA for Q3 FY24 stood at ₹21,107 Mn (making up 29.3% of Revenues and was ₹64,278 Mn for 9M FY24, making up 30.9% of Revenues.
- The Company’s Profit before Tax in Q3 FY24 was at ₹18,257 Mn, a rise of 12% YoY and down by 5% QoQ. For 9M FY24, the Profit before Tax stood at ₹55,854 Mn, a rise of 19% YoY.
- The Company’s Q3 FY24 Profit after Tax was ₹13,789 Mn, a rise of 11% YoY, but down by 7% QoQ, and it was Rs. 42,614 Mn for 9M FY24, a rise of 20% YoY.
Additional Read: Q3 Results Dashboard
Q3 FY24 Key Business Highlights
With a view to expansion and the development of innovative drug solutions, the Company had the following business highlights to share:
- The Company made the acquisition of the branded portfolio of MenoLabs, of women’s health-centric supplements, in the USA.
- The Company commenced an exclusive partnership with Coya Therapeutics for the development and commercialization of COVA 302. This is an Investigational Combination Therapy for the treatment of Amyotrophic Lateral Sclerosis (ALS).
- At the Bachupally unit, inspections by the USFDA were completed.
- A Product-specific Pre-Approval Inspection (PAI) at the Company’s biologics manufacturing unit in October 2023 was done.
- A routine cGMP inspection at the Company’s formulations manufacturing unit was done in October 2023.
- A GMP and Pre-Approval Inspection (PAI) was conducted at the Company’s R&D site in December 2023.
- Six new products were launched in European markets.
- Four new products were launched in the North American markets, and the Company filed two ANDAS with the USFDA. Cumulatively, the Company has 79 generic filings pending approval with the USFDA (with 21 having ‘First to File’ status).
- In some Emerging Markets, some saw QoQ growth because of new product launches.
- In India, three new brands were launched.
The Management’s Take on Q3 Results
Both the Co-Chairman and MD of Dr. Reddy’s Laboratories Limited had some key aspects of Q3 results to share and these are highlighted below:
- The Company has generated another quarter of the highest-ever sales metrics and other financial metrics. This has been driven by the launch of new products, and a base business market share gain in the US market.
- The Company has also witnessed strong business momentum in its Europe market.
- The Company’s financial results are a testament to its core businesses and segments, innovation in its product portfolio, and strategic partnerships to lead growth, tapping unmet patient requirements.
Financial Results at a Glance
Here is a glimpse of the Consolidated financial results of Q3 (figures in ₹ Mn as reported by the Company, except where specified otherwise):
| Metrics | Q3 FY 2023-24 | Q3 FY 2022-23 | YoY Growth % | Q2 FY 2023-24 | QoQ Growth % |
| Revenues | 72,148 | 67,700 | 7% | 68,802 | 5% |
| Gross Profit | 42,203 | 40,093 | 5% | 40,368 | 5% |
| Profit Before Tax | 18,257 | 16,346 | 12% | 19,134 | (5%) |
| Profit for the Period | 13,789 | 12,471 | 11% | 14,800 | (7%) |
Additional Check: Dr. Reddy’s Share Price
Q3 FY24 Result Summary
Dr. Reddy’s Laboratories Ltd. is a global player in the pharmaceutical Industry, and has its headquarters in Hyderabad, India. The Company was formed in 1984 and has always made good on its promise to create innovative medicines that come with affordability. The Company offers a host of products including generic drugs, APIs, branded generics, OTC, and biosimilars. The key focus of the Company is the manufacture of treatments for the medical areas of cardiovascular, gastrointestinal, diabetology, pain management, oncology, and dermatology. The main markets of the Company comprise India, the USA, Russia, Europe, Brazil, China, and CIS countries. With a background in deep science, the Company is accredited with many firsts.
As it has in successive quarters, the Company has witnessed growth in Q3 FY24, marking 9M FY24 as a period of sustainable profitability, especially in its North American market. In terms of the markets in Europe, YoY and QoQ growth has been witnessed in Germany with YoY growth in the UK. The Indian market, while witnessing YoY growth due to new product launches, experienced a decline in QoQ performance because of low volumes in the business base. In Emerging Markets, the Company continues to make strides in the CIS region and Romania with both QoQ and YoY growth registered, while QoQ growth in Russia saw a decline due to adverse currency exchange momentum. All in all, the Company continues to be a winner in the Indian Pharma industry and has many new potential positives in the pipeline.
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