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Informist, Wednesday, Jul. 23, 2025

 

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--Dr Reddy's Apr-Jun consol net profit INR 14.18 bln 
--Analysts saw Dr Reddy's Apr-Jun consol net profit at INR 15.48 bln 
--Dr Reddy's Apr-Jun consol net profit INR 14.18 bln vs INR 13.92 bln yr ago 
--Dr Reddy's Apr-Jun consol revenue INR 85.72 bln vs INR 76.96 bln year ago 
--Dr Reddy's Apr-Jun consol EBITDA margin 26.7% vs 28.2% year ago 
--Dr Reddy's Apr-Jun consol EBITDA INR 22.78 bln vs INR 21.60 bln year ago 
--Dr Reddy's Apr-Jun consol R&D expenses INR 6.24 bln, up 1% on year 
--Dr Reddy's Apr-Jun gross margin at 56.9% vs 60.4% year ago 
--Dr Reddy's Apr-Jun global generics sales INR 75.62 bln, up 10% on year 
--Dr Reddy's Apr-Jun N America generics sales INR 34.12 bln, dn 11% on year 
--Dr Reddy's Apr-Jun India generics revenue INR 14.71 bln, up 11% on year 
--Dr Reddy's Apr-Jun emerging markets generics sales INR 14 bln, up 18% YoY
--Dr Reddy's Q1 pharma svcs, active ingredients sales 8.18 bln, up 7% YoY 
--Dr Reddy's: Apr-Jun revenue growth broad based 
--Dr Reddy's: Apr-Jun revenue growth helped by consumer health portfolio 
--Dr Reddy's: Launched five new products in US in Apr-June 
--Dr Reddy's: Launched 13 new products in Europe in Apr-June 
--Dr Reddy's: Apr-Jun capex was INR 6.8 bln 

 

By Shakshi Jain

 

NEW DELHI – Dr Reddy's Laboratories Ltd. Wednesday posted a marginal on-year growth in its consolidated bottom line for the June quarter as total expenses of the company rose faster than its revenue during the quarter. Both the metrics--consolidated net profit and revenue--fell short of Street estimates. The drug-maker's year-on-year bottom-line growth was the lowest in three quarters and the top-line growth was at a six-quarter low in Apr-Jun. 

 

The pharmaceuticals major reported a consolidated net profit of INR 14.18 billion for the June quarter, up nearly 2% on year but down 11% sequentially. This was lower than the INR 15.5 billion expected by analysts. The company's consolidated revenue in the reporting quarter rose 11% on year but was largely flat sequentially at INR 85.72 billion, failing the Street estimate of INR 87.4 billion.

 

Total expenses of the company rose almost 16% on year to INR 69.58 billion, led by a near 70% uptick in costs of materials consumed at INR 20.36 billion. Meanwhile, employee benefit expenses during the quarter grew over 6% on year to INR 15.04 billion and other expenses rose almost 6% to INR 20.88 billion. However, expenses related to purchase of stock-in-trade fell almost 12% in Apr-Jun to INR 12.16 billion. The consolidated research and development expenses of the company for the June quarter rose 1% to INR 6.24 billion. The overall capital expenditure by the company in Apr-Jun totalled INR 6.8 billion.

 

Dr Reddy's saw broad-based revenue growth during the June quarter with the exception of North America, where sales of generics declined 11% on year to INR 34.12 billion. Back home, generics sales contributed INR 14.71 billion to the drug-maker's kitty, reflecting a growth of 11%. In the emerging markets, which added INR 14 billion in revenue from sales of generics, the growth was higher at 18%. In Europe, revenue from sales of generics grew a whopping 142% on year to INR 12.74 billion, helped by the acquired nicotine replacement therapy business. Barring the contribution from the nicotine replacement therapy portfolio, the growth in generics sales in Europe was only 15% in the June quarter. "The growth in Europe was largely driven by revenues from the acquired NRT (nicotine replacement therapy) portfolio and incremental contributions from new product launches though partly offset by price erosion," Dr Reddy's said in a statement.

 

Together, the company clocked INR 75.62 billion from global generics sales in the June quarter, up 10% on year. In Apr-Jun, Dr Reddy's launched five new products in the US, its largest market in terms of revenue. This number was 13 for Europe. "Growth during the quarter was broad-based, aided by contributions from the acquired Consumer Healthcare portfolio in Nicotine Replacement Therapy and sustained performance in our branded markets," Dr Reddy's said.  

 

In the pharmaceutical services and active ingredients segment, revenues totalled INR 8.18 billion, up 7% on year but down 14% sequentially. "Growth during the quarter was driven by launch of new API (active pharmaceutical ingredient) products and favourable forex, partially offset by lower pricing and softer demand. Performance was further supported by growth in the pharmaceutical services business. QoQ (quarter-on-quarter) decline was primarily attributable to seasonal volume softness," Dr Reddy's said.

 

The company's Apr-Jun earnings before interest, taxes, depreciation, and amortisation were INR 22.78 billion, up from INR 21.60 billion in the year-ago quarter. However, the company's EBITDA margin for the quarter contracted by 150 basis points on year to 26.7%. Its gross margin in Apr-Jun stood at 56.9%, down from 60.4% a year ago.

 

Wednesday, shares of the company closed at INR 1,247.40 on the National Stock Exchange, up 0.6% from the previous close. The company disclosed its June quarter earnings post market hours.  End

 

Edited by Akul Nishant Akhoury

 

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