Dr Reddy’s profit grows ninefold in March quarter

Hyderabad (Telangana) [India], May 11 (ANI): Pharma giant Dr Reddy’s Laboratories has posted a ninefold jump in its profit after tax to Rs 959 crore for the quarter that ended March 31, 2023, driven by its performance in US generics.

The company had Rs 87-crore net profit in the year-ago period.

The pharma’s revenue went up 16 per cent to Rs 6,297 crore during the quarter reviewed, over the figure in the corresponding period the previous year. Its Ebitda went up 25.9 per cent to Rs. 1,631 crore while its gross margin was at 57.2 per cent in Q4 FY23.

The company incurred Rs 537 crore in research and development.

Commenting on the results, Co-Chairman and Managing Director, G V Prasad said: “FY23 has been a year of record sales, profits and cash flow, driven by our performance in US Generics. We progressed well in our productivity and sustainability agenda.

We will continue to deliver on our purpose, invest in growth drivers and promote a culture that is innovative and collaborative ensuring the future of our business.”

In FY23, the firm’s net profit went up 91 per cent to Rs 4,507 crore in the quarter under review over the figure in the year-ago period. Revenue in FY23 went up 15 per cent year-on-year to Rs 24,588 crore.

Earnings before interest, taxes, depreciation and amortization (Ebitda) rose 42 per cent in FY23 to Rs 7,308 crore.

In FY23, revenue from India was at Rs 48.9 billion. “Year-on-year growth of 17 per cent was primarily attributable to the increase in prices of our existing products,” the pharma giant said. The growth was also aided by the divestment of a few non-core brands during the year.

“During the year, we launched nine brands in India,” the company said.