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Dr. Reddy’s Laboratories Q4 Results: Net Profit at ₹1,307 Cr; up 36% YoY

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Synopsis:

Dr. Reddy’s Laboratories released its Q4 and FY2023-24 results on 7 May 2024, with a spurt in Net Profit, showing growth of 36% YoY, but 2% growth on a sequential QoQ basis. The growth figures come from the Hyderabad-based key businesses and operations in the USA, but the Company has made a few strides domestically too, with the launch of new brands. With its ever-unflinching focus on the provision of innovative and affordable prescription drugs, the Company witnessed a 12% YoY jump in Revenues, while Gross Margin stood at 58.6%. Significant progress in the quarter continues to be made on the back of future growth drivers via collaboration, licensing, and effective pipeline structuring. 

5 Key Financial Highlights

Dr. Reddy’s Labs Q4 results are what the Company expected and more, as it continues to serve clients domestically and globally with its prominent business of APIs (Active Pharmaceutical Ingredients), biosimilars, branded generics, and OTC products. Q4 has proved to be a relevant quarter for the Revenues and Net Profit it has generated for the Company. Here are 5 main financial metrics that make Q4 special and positive for the Company: 

  • Consolidated Revenue from Operations for Q4 FY24 was higher by 12% YoY at ₹7,083 Cr, chiefly driven by strong performance in the North American and Emerging Markets business 
  • Consolidated Net Profit for Q4 FY24 was at ₹1,307 Cr relative to ₹959 Cr for Q4 FY23; a Q4 FY2024 rise of 36% YoY
  • Gross Margin for Q4 FY2023-24 was at 58.6%
  • EBITDA for Q4 FY24 reached ₹1,872 Cr as against ₹1,631 Cr for Q4 FY23
  • Diluted EPS for Q4 FY2024 stood at ₹78.53, as opposed to Q4 FY2023 when it was at ₹57.68; a rise of 36% YoY for Q4 FY2024

ExploreDr. Reddy's Laboratories Share Price

Scaling Heights in Every Quarter

Dr. Reddy’s Laboratories, a Pharma company with a patient-centric view, has a purposeful operational strategy that has product innovation at its heart. By leveraging its capabilities in R&D areas, the Company is using digital technology to generate affordability to patients and deliver on promises to its global clients. Here are some vital insights into the Company’s business that have led to positive figures in Q4:

  • The reported YoY Revenue growth was predominantly driven by growth in global generics Revenues in North America and Emerging Markets. Contrastingly, the QoQ decline was mainly due to lower global generics Revenues in India, North America, and Emerging Markets.
  • Regarding the Indian business, the Company has launched three fresh brands, taking the FY2023-24 to a total of 13 brands launched. 
  • The decline in growth in the Indian market was mainly due to lower volumes from base businesses. 
  • Gross Margin witnessed an increase of 140 bps in the quarter, on account of improvement in product mix and productivity cost savings. On a QoQ sequential basis, growth was also visible, primarily due to favourable product mix.
  • The Board has recommended a dividend of ₹40 per equity share of face value ₹5 each (800% of face value) for the year ended 31 March 2024. 

Additional Read: Dr. Reddy’s Laboratories Ltd

Key Financial Metrics - Consolidated Q4 (FY 2023-24) Financial Results (Income Statement) of Dr. Reddy’s Laboratories (in ₹ Crore)

Metrics

Q4 FY24

Q4 FY23

YoY Growth % 

Revenues

7,083

6,297

12%

Gross Profit

4,148

3,600

15%

% of Revenues

58.6%

57.2%

 

EBITDA

1,872

1,631

 

Results from Operating Activities

1,496

1,238

21%

Profit Before Tax

1,602

1,325

21%

Profit After Tax/Net Profit

1,307

959

36%

Diluted Earnings Per Share (EPS)

78.35

57.62

36%

Dr. Reddy’s - Robust Pharma Future 

With high Free Cash Flows, the Company is looking ahead with its commitment to cost-effective healthcare in place and its client promises intact. The mantra of “Good Health Can’t Wait” is working for the Company that has forged ahead in the Pharma sector with rigour in governance, deep science in its innovative healthcare products, and its progressive practices, be it with its workforce or its clientele. On a global scale, the Company is making leaps in the Pharma sector in the UK and Germany in European and North American markets with new brand launches and profits to write home about. Dr. Reddy’s Q4 results portray a growth spurt and this bodes well for the Company going into FY25. 

Additional Read: Marico Q4 Results

Conclusion

Dr. Reddy’s Laboratories' quarterly results exhibit a conspicuous rise in Net Profit for Q4 FY2023-24. The Net Profit for the quarter stood at ₹1,307 Cr. Revenues were up at ₹7,083 Cr, a rise by 12% YoY, but dipping 2% on a QoQ basis. One of the key Pharma companies in the segment of the manufacture of global generics, this evolving company is making leaps forward with its US-based business operations as well as witnessing gains from its emerging markets. In the quarter, the Company has stuck to its mission to deliver growth through key partnerships (the main ones with Sanofi and Bayer) and expand its product portfolio. With deep science at the core of the business, Dr. Reddy’s Laboratories has set its sights on extending its work in the field of Research & Development aiming to raise its pharmacology standards higher in the next fiscal year. 

Dr. Reddy’s Labs Q4 results’ stand-out feature seems to be its PAT which has surged 36% on a YoY basis. The Company has forayed into the production of revolutionary drugs, especially for the treatment of cancer, and other lifestyle diseases. With the bottom line supported in Q4 Revenues and margins aided by robust Revenue growth, Dr. Reddy’s Labs is more than ready for FY25.

Results for the Fourth Quarter and Full Year Ended March 31, 2024

Additional ReadLupin Q4 Results

Source: 

Dr. Reddys Laboratories Press Release on BSE

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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Frequently Asked Questions

What was the contributing factor to Revenue growth in Dr. Reddy Labs Q4 results?

Answer Field

Dr. Reddy’s Labs’ Revenue growth in Q4 was chiefly due to robust performance in the Company’s international businesses, mainly in North America, Europe, and Emerging markets.

What were some of the key financial indicators that stood out in Dr. Reddy’s Q4 results?

Answer Field

Some of the key financial indicators that stood out in Dr. Reddy’s Labs Q4 results were the PAT which grew 36% YoY and Revenue which rose 12% YoY.

From the Q4 results of Dr. Reddy Laboratories, what can you say about the future of the Company?

Answer Field

Dr. Reddy’s Q4 results portray healthy growth on a YoY basis, although sequentially this may be on the low side. Still, with new brands launched and collaborations and deals made, the Company has set foot into FY25 with strategies and plans to expand its footprint both globally and in India.

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