Dr. Reddy’s Laboratories Q3 Results FY2024, Net profit at Rs.1378.9 crores

On 30th January, Dr. Reddy’s Laboratories announced its quarterly results.

Key Highlights:

- Consolidated Revenue from Operations was at Rs.7214.8 crores for Q2FY24, up by 7% YoY.
- Profit before tax at Rs.1825.7 crores
- Net Profit increased by 11% to Rs.1378.9 crores

Business Highlights:
 

- Revenue for Global Generics was reported to be Rs. 63.1 billion, with a 7% YoY rise and a 3% QoQ growth was primarily driven by increase in volumes of our base business, new product launches, partially offset by price erosion in certain markets
- With revenue of Rs. 33.5 billion, North America had a 5 % QoQ and a 9% YoY gain. The company introduced four new goods to the market during the quarter, two of which were introduced in the United States. The company submitted two novel Abbreviated novel Drug Applications (ANDAs) to the US Food and Drug Administration (USFDA) during the quarter. A total of 79 generic submissions (75 ANDAs and 4 NDAs via the 505(b)(2) route) were seeking clearance with the USFDA as of December 31, 2023. 
- Europe's sales was Rs. 5 billion, with a 15% YoY rise and a 6% QoQ drop.YoY increase was mostly driven by the introduction of new products, improvements in base business volumes, and favorable changes in foreign exchange rates, which were somewhat offset by price erosion. The main cause of the QoQ fall was price erosion in several areas, which was somewhat countered by growth in our core business volumes. 
- India's revenue, at Rs. 11.8 billion, increased 5% YoY and 1% QoQ drop. The QoQ reduction was mostly caused by reduced volumes in the base business, whilst YoY increase was primarily due to revenues from new product launches. 
- Russia's revenue for the quarter was Rs. 5.9 billion, representing a 14% YoY reduction and a 2% QoQ gain.
- Revenue for the year from Romania and the other CIS nations was Rs. 2.3 billion, with YoY growth of 4% and QoQ growth of 7%. 
- Revenue from Rest of World (RoW) territories was Rs. 4.6 billion for the year, representing a 16% YoY increase and a 10% QoQ increase. 
- Revenue from Pharmaceutical Services and Active Ingredients (PSAI) was Rs. 7.8 billion, up 11% QoQ and 1% YoY. 
– Exclusive partnership with Coya Therapeutics for the development and marketing of COVA 302, an investigational combination therapy for the treatment of amyotrophic lateral sclerosis (ALS) 
 - Acquired the MenoLabs branded portfolio of women's health-focused supplements in the United States 
- U.S. FDA inspections at the Bachupally factory are finished. Within the allotted time, the observations' responses were turned in. 

Commenting on the results, Co-Chairman & MD, G V Prasad said: "We delivered another quarter of highest ever sales and robust financial performance aided by new products performance and base business market share gain in the U.S., new products launch momentum and strong performance in Europe. We continue to strengthen our core businesses and invest in innovative products in strategic collaboration for novel molecules to meet unmet needs of patients."