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Informist, Friday, May 9, 2025

 

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--Dr Reddy's Jan-Mar consol net profit INR 15.93 bln vs INR 13.10 bln yr ago
--Analysts saw Dr Reddy's Jan-Mar consol net profit INR 14.54 bln
--Dr Reddy's Jan-Mar consol revenue INR 85.28 bln vs INR 71.14 bln year ago
--Dr Reddy's to pay INR 8 per share final dividend
--Dr Reddy's FY25 consol net profit INR 56.55 bln vs INR 55.78 bln year ago
--Dr Reddy's FY25 consol revenue INR 325.54 bln vs INR 279.16 bln year ago
--Dr Reddy's Jan-Mar consol EBITDA INR 24.75 bln vs INR 18.72 bln year ago
--Dr Reddy's Jan-Mar consol EBITDA margin 29.1% vs 26.4% year ago
--Dr Reddy's FY25 EBITDA INR 92.13 bln vs INR 83.01 bln year ago
--Dr Reddy's FY25 EBITDA margin 28.3% vs 29.7% year ago
--Dr Reddy's Jan-Mar global generics sales INR 75.37 bln, up 23% on year
--Dr Reddy's Jan-Mar N America generics sales INR 35.59 bln, up 9% on year
--Dr Reddy's Jan-Mar Europe generics sales INR 12.8 bln vs INR 5.2 bln yr ago
--Dr Reddy's Jan-Mar emerging markets generics sales INR 13.98 bln
--Dr Reddy's Jan-Mar emerging markets generics sales up 16% on year
--Dr Reddy's Jan-Mar India generics revenue INR 13.05 bln, up 16% on year
--Dr Reddy's Jan-Mar consol R&D spend INR 7.26 bln, up 6% on year
--Dr Reddy's: Launched 7 new products in US during Jan-Mar

 

By Avishek Rakshit

 

KOLKATA – Launches of new products, increased revenue from the US and Europe, and income from the acquired nicotine replacement therapy business helped pharmaceuticals major Dr. Reddy's Laboratories Ltd. to report its highest revenue growth in seven quarters for Jan-Mar, beating the Street's expectations along the way.

 

The company also reported an increase of nearly 22% in its consolidated net profit for the March quarter at INR 16 billion, outdoing the Street's projection by more than INR 1 billion. The consolidated revenue for the quarter rose around 20% on year to over INR 85 billion, INR 2 billion higher than the Street's expectation.

 

Sales of generic drugs in the US, the company's largest market, increased 9% on year and 5% sequentially to around INR 36 billion, but the revenue from Europe surged a whopping 145% on year and 5% on quarter to nearly INR 13 billion. The revenue growth in India, the company's second largest market, was 16% on year, rising to about INR 13 billion, but down 3% sequentially. The emerging markets, which generated INR 14 billion of revenue, had a growth trend similar to India's.

 

Taken together, the generics business across regions grew 23% on year, with an underlying growth of 13% excluding the nicotine replacement therapy business. The pharmaceutical services and active ingredients business, which generated around INR 10 billion of sales for Dr. Reddy's, grew 16% on year as well as on quarter.

 

In a statement, Dr. Reddy's said its growth in the US was driven primarily by new product launches and increased volumes of key products. During the quarter, the company launched seven new products in the US and 18 products during the financial year 2024-25 (Apr-Mar). The company filed 10 new abbreviated new drug applications with the US Food and Drug Administration during the fiscal year. As of March, 76 generic filings were pending approval by the FDA.

 

The growth in Europe was primarily on account of the nicotine replacement therapy business which Dr. Reddy's acquired in June. New products added to the revenue growth. During the March quarter, the company launched 10 new products in Europe, taking the total launches during FY25 to 39. However, price erosion in the US and in Europe affected the revenue from these regions.

 

In India, revenue from the vaccine portfolio in-licensed from Sanofi India, new product launches, and price increases drove the revenue up but sales volumes declined.

 

However, the gross margin during Jan-Mar declined 300 basis points on year and 312 basis points on quarter to 55.6%. Dr. Reddy's attributed the decline to higher price erosion in generics, lower manufacturing overhead leverage, and milestone income accrued in FY24. The sequential decline was mainly because of lower manufacturing overhead leverage and higher milestone income recorded in Oct-Dec.

 

The company's consolidated earnings before interest, tax, depreciation, and amortisation increased 32% on year and 8% on quarter to nearly INR 25 billion during the quarter under review. For FY25, the company's EBITDA was INR 92 billion, up 11% on year. The EBITDA margin for the year declined to 28.3%, from 29.7% for FY24.

 

During the quarter, Dr. Reddy's spent over 8% of its revenue, or INR 7 billion, on research and development projects which supported its pipeline across small molecules, biosimilars, complex generics, including peptides, and novel oncology assets.

 

During FY25, Dr. Reddy's consolidated net profit increased by a little over 1% to INR 57 billion, and consolidated sales increased by around 17% on year to over INR 325 billion. Its FY25 consolidated revenue figures were as per international financial reporting standards. The company's board Friday approved a dividend of INR 8 per share.

 

Friday, shares of Dr. Reddy's closed 0.7% up at INR 1,155.90 on the National Stock Exchange.  End

 

Edited by Rajeev Pai

 

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