On October 27, 2023: Dr. Reddy’s Laboratories BSE, NSE: DRREDDY) announced its Q2 2023-24 financial results, delivering yet another quarter of financially sound results in terms of the highest-ever profits and sales, given robust momentum growth in the US generic market space and European markets.
Table of Content
Key Highlights
Here are the main highlights of the consolidated Q2 results of Dr. Reddy’s Laboriatories with YoY and QoQ details:
- Revenues for Q2 were up by 9% YoY and 2% QoQ, standing at ₹6,880.2 Cr.
- The Gross Margin was 58.7%, standing at 59.1% in Q2 FY23-24.
- SG&A Expenses are at ₹1879.5 Cr, up 13% YoY, and 6% QoQ.
- R&D Expenses stand at ₹544.7 Cr, which amounts to 7.9% of revenues.
- EBITDA is at ₹2181.3 Cr, 31.7% of Revenues.
- The Profit Before Tax is at ₹1913.4 Cr, up 19% YoY, and 4% QoQ.
- The Profit After Tax stands at ₹1,480 Cr, up 33% YoY and 6% QoQ.
Additional Read: Q2 Results Dashboard
Management Commentary
The MD and Co-Chairman. V. Prasad had the following reflections on the Q2 results:
- The Q2 was marked by robust growth and the highest-ever profit and sales figures, motivated by gains in market share and the momentum in the European and US generics markets.
- The company will continue to strengthen its organic pipeline and make its business development more robust.
- The company continues to strive for differentiation and further and more prosperous results.
The Q2 Sales Mix
While most of the company’s sales were driven by the US market (46%), the company has witnessed lucrative sales in India (17%), emerging markets (18%), and PSAI sales (10%).
Top-of-the-Line Results
Here are some other features of the Q2 results of Dr. Reddy’s Laboratories:
- 4 new products were launched in the US market.
- 2 new ANDAs were filed with the USFDA.
- The European Revenues grew from the contribution of new products and favourable foreign exchange.
- Revenue arising out of the Russian markets saw a YoY decline but a QoQ growth due favourable pricing standards.
- Revenue from Romania and other CIS countries grew YoY and QoQ.
Additional Read: Dr. Reddy’s Share Price
Financial Results
The table below shows the financial results in a nutshell (all amounts are in ₹crore unless indicated by %):
| Metrics | Q2 FY2023-24 | Q2 FY2022-23 | YoY % Growth | Q1 FY2023-24 | QoQ % Growth |
| Revenues | 6,880.2 | 6,305.7 | 9% | 6,738.4 | 2% |
| Gross Profit | 4,036.8 | 3,724.7 | 8% | 3,955.3 | 2% |
| Results from Operations | 1,786.7 | 1,612.7 | 11% | 1,763.6 | 1% |
| Profit After Tax | 1,480.0 | 1,112.8 | 33% | 1,402.5 | 6% |
About Dr. Reddy’s Laboratories
Dr. Reddy’s laboratories began its modest operations in 1984 with a moderate investment but a vision that can only be described as “bold”. Currently, with R&D centres, and a host of manufacturing plants, the company has a global presence and has made a distinctive mark in the sector of Pharmaceuticals. Dr. Reddy’s Laboratories serves over half a billion patients on a worldwide platform. The company started small but is growing and evolving and aims to facilitate more than 1.5 billion patients by the year 2030.
The company has a life-long commitment to providing innovation and affordability in its medicines, with the unique motto, “Good health can’t wait”. With products and services spanning core businesses such as generic medicine, Active Pharmaceutical Ingredients or API, biosimilars, branded generic medications, and over-the-counter drugs, the company boasts success across the globe, only striving to extend its reach further and further. The company has effectively catered to the needs of patients in the fields of oncology, gastroenterology, diabetology, cardiovascular, and chronic pain. The present focus of the business is on digital healthcare and drug discovery.
Source: https://www.drreddys.com/investor#reports-and-filing#quarterly-reports
