Hyderabad based Dr Reddy’s Labs revenue Jumps 16%, profit grows 2% YoY to ₹1,413 crore

Dr Reddy’s Laboratories has reported a 2% year-on-year (YoY) increase in consolidated profit after tax (PAT), reaching ₹1,413.3 crore for the quarter ending December 2024 (Q3 FY25). In the same quarter last year, the PAT stood at ₹1,378.9 crore.

The pharmaceutical giant's revenue from operations surged by 16% YoY to ₹8,358.6 crore, compared to ₹7,214.8 crore in Q3 FY24. The growth was fueled by contributions from the recently acquired Nicotine Replacement Therapy (NRT) portfolio, robust revenues from India, and a strong performance in Emerging Markets.

Segment-Wise Performance

Global Generics Segment: Revenue increased by 17% YoY during the quarter.

Pharmaceutical Services and Active Ingredients (API): This segment recorded a 5% revenue growth.

The company’s earnings before interest, tax, depreciation, and amortization (EBITDA) for the quarter rose to ₹2,298.2 crore, up from ₹2,110.7 crore in Q3 FY24 and slightly higher than ₹2,280.3 crore in Q2 FY25. The gross margin for the quarter stood at 58.7%, consistent with 58.5% in the same period last year but lower than 59.6% in Q2 FY25.

R&D Investments

Dr Reddy’s Labs invested ₹6.7 billion in research and development (8% of its revenue) during the quarter. The funds were allocated to the development of complex generics, peptides, biosimilars, and novel oncology assets, reflecting the company’s strategic focus on innovation.

9M FY25 Performance

For the nine months ending December 2024, the company’s revenue grew by 15% YoY to ₹24,047.5 crore. However, profit declined by 5% YoY to ₹4,060 crore.

Management Commentary

G.V. Prasad, Co-Chairman & Managing Director of Dr Reddy’s Labs, stated, “We delivered double-digit growth aided by our newly acquired NRT business, new launches, and improved operational efficiencies. We remain committed to advancing healthcare through access, affordability, and innovation to address patient needs.”

Stock Performance

On January 23, Dr Reddy’s Labs' share price closed at ₹1,289.35 on the BSE, down 0.54% from the previous trading session.

Disclaimer: The above information is sourced from public statements and financial reports. Investors are advised to consult certified financial experts before making any investment decisions.