Dr Reddy Q4 Results 2024 Financial Performance
Dr Reddy Q4 Results 2024, Dr. Reddy’s Laboratories (DRL) recorded a net profit of ₹5,568.4 crore, marking a 36% rise, with total revenues reaching ₹27,920 crore, reflecting a 14% year-on-year growth. This growth was primarily driven by strong performances in North America, Europe, and emerging markets.
Dr Reddy Q4 Results 2024
Dr. Reddy’s Laboratories Ltd (DRL) announced a net profit of ₹1,307 crore for the quarter ended March (Q4FY24), exceeding analysts’ forecasts. The 36% year-on-year increase in net profit was fueled by robust performance in the US market.
Revenue Surge
According to an exchange filing, the Hyderabad-headquartered company disclosed that revenue surged to ₹7,083 crore in the quarter, marking a 12% year-on-year (YoY) growth, driven by strong sales in North America and emerging markets.
Analyst Expectations
Analysts polled by Bloomberg anticipated revenues totaling ₹7,026.5 crore and a net profit of ₹1,214.8 crore for the period in question.
Future Growth Prospects
“The growth and profitability we experienced in FY24 were driven by our strong performance in the US market. Additionally, we have made notable strides in advancing future growth avenues through licensing, collaboration, and pipeline expansion,” stated G V Prasad, co-chairman & MD of DRL.
Outlook for FY25
In FY24, DRL posted a net profit of ₹5,568.4 crore, marking a 36% surge, with total revenues hitting ₹27,920 crore, up 14% year-on-year. This growth was once again driven by strong performances in North America, Europe, and emerging markets.
“We expect FY25 to sustain this momentum, achieving double-digit growth with a 25% average EBITDA, and we anticipate continued double-digit growth in the US market. We are optimistic as we plan to introduce new products across markets consistently,” remarked Erez Israeli, CEO of DRL.
Financial Highlights for Dr Reddy Q4 Results 2024
For the March quarter, the company reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of ₹1,872 crore, translating to an EBITDA margin of 25.4%. Research and development expenses amounted to ₹690 crore, primarily directed towards the biosimilar products pipeline and development efforts across generics and novel oncology assets. Additionally, capital expenditure for Q4FY24 totaled ₹500 crore, reaching ₹1,517 crore for the entire year, with a free cash flow of ₹1,910 crore and a net cash surplus of ₹6,460 crore, according to an exchange filing by the company.
“Our focus for FY25 will be directing our capital expenditure (capex) primarily towards products slated for launch in the coming years. This investment will focus on biologics, encompassing biosimilar programs and CDMO. Additionally, we have a portfolio of products earmarked for future launches, necessitating capacity expansion in both API and injectables, as well as advancements in digital infrastructure,” Israeli elaborated.
In the quarter under scrutiny, DRL’s global generics segment, its cornerstone, witnessed a 13% revenue uptick to ₹6,120 crore. This growth stemmed from increased base business volumes and the introduction of new products, although domestic generics sales declined by 12% to ₹1,126 crore.
“So, the decline was attributed to the divestment income from brands, but we are optimistic about the trajectory of our core business,” stated MV Ramana, CEO of branded markets (India & emerging markets) at DRL.
Regional Performance
In North America, which represented 46% of global sales, revenue surged by 29% to ₹3,262 crore, driven significantly by the drug Revlimid and the introduction of five new products.
In Europe, generics sales increased by 5% to ₹520 crore, led by strong performances in the UK and Germany, supported by the launch of six new products. However, revenue from emerging markets dipped by 9% to ₹1,210 crore, despite the introduction of 17 new products.
Revenue from Russia decreased by 4% to ₹500 crore, attributed to unfavorable currency exchange rate fluctuations. Conversely, Rest of the World (RoW) revenues witnessed a 34% year-on-year growth to ₹490 crore, primarily fueled by contributions from new products.
The Pharmaceutical Services and Active Ingredients (PSAI) segment recorded a 6% revenue growth, reaching ₹820 crore.
Strategic Collaborations
Additionally, during the quarter, DRL established a joint venture with Nestle India to launch innovative nutraceutical brands in India and other regions. Furthermore, the company partnered with Sanofi to promote and distribute its vaccine brands, and collaborated with Bayer to distribute Vericiguat, a drug for heart failure management, in India.
