Dr Reddy Labs Q4FY23 PAT up 10-fold at Rs960 crore as higher revenues imply boost to contribution

Reddy Labs reported 15.4% growth in total revenues for the March 2023 quarter on consolidated basis at Rs6,315cr. On a sequential basis, the revenues were down -6.99%. Reddy Labs operates in a sector where the costs are largely absorbed and additional sales boost the contribution. In Q4FY23, the gross margin spurted from 52.9% to 57.2% yoy showing how the gross profit got a boost from higher sales. This led to profit surge.

Reddy Labs reported EBITDA for the fourth quarter at Rs1,631 crore implying EBITDA margins of 25.9% for the quarter. The R&D spending stood at Rs537 crore in the quarter translating into 8.5% of revenues, a healthy measure by global standards too. The top line and bottom line performance was largely driven by the US generics business.

Financial highlights for Mar-23 compared yoy and sequentially

 Dr Reddy's Labs    

Rs in Crore

Mar-23

Mar-22

YOY

Dec-22

QOQ

Total Income (Rs cr)

₹ 6,315

₹ 5,475

15.35%

₹ 6,790

-6.99%

Operating Profit (Rs cr)

₹ 1,238

₹ 152

715.01%

₹ 1,643

-24.63%

Net Profit (Rs cr)

₹ 960

₹ 97

889.79%

₹ 1,244

-22.82%

 

 

 

 

 

 

Diluted EPS (Rs)

₹ 57.68

₹ 5.83

 

₹ 74.76

 

OPM

19.60%

2.77%

 

24.19%

 

Net Margins

15.20%

1.77%

 

18.32%

 

 

The yoy growth in top line was an imposing 27% for North America, 12%for Europe and 32% for India. The US still accounts for nearly half of revenue with India accounting for a fourth. The active ingredients business was just up 3% on a yoy basis. However, the US revenues were lower on a sequential basis which shows as lower sales.

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