Dr. Reddy Labs Q1 Results FY2024, Profit at Rs. 14,025 Million

On 26th July 2023, Dr. Reddy Labs announced its quarterly results for the last quarter of FY2023.

Dr. Reddy Labs Financial Highlights:

- Revenue from operations at Rs. 67,834 million grew by 29% during the quarter
- Profit before tax for the quarter at Rs. 18,463 million, grew by 26% YoY. 
- Profit after tax for the quarter at Rs. 14,025 million grew by 18%. 

Dr. Reddy Labs Business Highlights:

- For Q1 FY24, North American business reported revenue at Rs. 32 billion, YoY growth of 79%, and QoQ growth of 26%. The growth was primarily on account of new product launches, continued momentum in existing products, and favorable forex rates movement, partly offset by price erosion. 
- For Q1FY24, European business reported revenue at Rs. 5.1 billion, YoY growth of22% and QoQgrowth of2%. The growth was driven by momentum in the base business, new product launches, and favorable forex rates movement, partly offset by price erosion. 
- For Q1 FY24 revenue at Rs. 11.5 billion, YoY decrease of 14% and QoQ decline of 11 %. Excluding brand divestment income, sales of the divested portfolio from the base, and NLEM-related price reduction impact, India's business registered a high single-digit growth.
- Revenue from Russia for the quarter at Rs. 5.6 billion, YoY growth of 75%, and QoQ growth of 9%. Yo Y growth was driven by an uptick in base business, price increases, and biosimilars. This was further aided by the low base in the previous year.
- Revenue from other CIS countries and Romania for the year at Rs. 2.0 billion, YoY growth of 2%, and QoQ decline of 14%. YoY growth, primarily on account of price increases on certain products, was offset by a decline in base business volumes
- Revenue from the Rest of World (RoW) territories for the year at Rs. 4.0 billion, YoY growth of 1 %, and QoQ growth of 8%. Yo Y growth, led by new product launches, was offset by price erosion and lower base business volumes.
-For Pharmaceutical Services and active ingredients (PSAI) business, revenue at Rs. 6.7 billion, with a decline of 5% YoY and 14% QoQ. YoY decline was mainly attributable to lower volume pick up by customers for some of our existing products, partly affected by favorable forex rate movement

Commenting on the results, Co-Chairman & MD, G V Prasad said: 'We delivered strong sales growth and witnessed robust margin expansion in Q1FY24 driven by market share gains & new product momentum in our US generics business and superior performance in Russia. We are on track in executing our strategy, delivering growth while continuing to invest in future growth drivers and innovation to create sustainable value."