Dr Reddy's Q3 Results: All you need to know!

Profit rise - Dr Reddy’s Laboratories has reported a massive increase in its Net Profits to Rs 709.3 crore for the Oct-Dec quarter. Last year, in the quarter ending December, the company reported a net profit of Rs 27.9 crore. However, sequentially the net profits declined from Rs 992 crore (29% fall). Analysts had earlier estimated a profit of about Rs 742.6 crore.

Increase in revenue - The revenue increased to Rs 5,338.3 crore, up 8% YoY. It was slightly lower than street estimates of Rs 5,456.2 crore. The exceptional increase in revenue is led by its global generics and proprietary drugs business during the quarter. 

In Q3FY22, the proprietary products business saw its sales decline of 8%. India business saw a 7% YoY jump to Rs 1,030 crore while revenue from North America jumped to Rs 1,860 crore, an increase of 7% YoY. Revenues from Emerging markets came in at Rs 1,150 crore, which is an increase of 20% over last year. The revenue from Europe was down by 2% at Rs 410 crore.

EBITDA declined sequentially- The Hyderabad-based firm reported Earnings before interest, tax, depreciation, and amortization (EBITDA) at Rs 1,265.90 crore in Q3FY22 compared to Rs 1,557 crore in the previous quarter. The EBITDA margin stood 23.8% in Q3FY22 higher than 24% in Q3 December 2020 and 27% in Q2 September 2021.

Spent on research and development - Dr Reddy's spent Rs 415.90 crore on research and development, which was 7.8% of the quarterly sales. In the last quarter, the spend was Rs 446 crore.

Dr Reddy:

Dr Reddy's have reported muted numbers. Though the topline was higher than the street estimate, the bottomline was below street estimates. Sequentially, the numbers were on the lower side. It has delivered healthy EBITDA and strong cash generation (net cash surplus of Rs 1,270 crore). The company continues to build a pipeline of products across businesses. The company also said in a statement that ESG will remain a key focus area for them.