Dr. Reddy's Laboratories Q2 Results FY2024, Net profit at Rs.14,800 Million

On 27th October 2023, Dr. Reddy's Laboratories announced its quarterly results.

Key Highlights:

- Consolidated Revenue from Operations was at Rs.68,802 million for Q2FY24, up by 9% YoY.
- EBITDA at Rs.21,813 million
- Net Profit increased by 33% to Rs.14,800 million

Business Highlights:

 
- Revenue for Global Generics was reported to be Rs. 61.1 billion, with a 9% YoY rise and a 2% QoQ growth. North America and Europe accounted for the majority of this expansion. 
- With revenue of Rs. 31.7 billion, North America had a 1 % QoQ dip and a 13% YoY gain. Price erosion partially offset the gain, which was attributed to Mayne integration, improving momentum in our core portfolio, and favorable foreign exchange moves. The company filed two novel Abbreviated new Drug Applications (ANDAs) to the US Food and Drug Administration (USFDA) during the quarter. As of September 30, 2023, a total of 79 generic filings—75 ANDAs and 4 NDAs under the 505(b)(2) route—were awaiting USFDA clearance. Of the 79 pending ANDAs, we believe 20 have 'First to File' status, while 41 are Para IVs.
- Europe's sales was Rs. 5.3 billion, with a 26% YoY rise and a 4% QoQ growth. Leveraging the current portfolio, the introduction of new items, and the advantageous currency, which was somewhat offset by price erosion, were the main drivers of the expansion.
- India's revenue, at Rs. 11.9 billion, increased 3% YoY and 3% QoQ. This increase was mostly caused by price and new product releases; the impact of NLEM and the weak acute season somewhat mitigated this development.
- Russia's revenue for the quarter was Rs. 5.8 billion, representing a 3% YoY reduction and a 3% QoQ gain.
- Revenue for the year from Romania and the other CIS nations was Rs. 2.2 billion, with YoY growth of 1% and QoQ growth of 12%. YoY growth, mostly due to higher prices for specific products
- Revenue from Rest of World (RoW) territories was Rs. 4.2 billion for the year, representing a 1% YoY increase and a 6% QoQ increase. YoY growth is driven by the introduction of new products, somewhat countered by decreased base business and pricing pressure. 
- Revenue from Pharmaceutical Services and Active Ingredients (PSAI) was Rs. 7.0 billion, up 5% QoQ and 9% YoY. YoY growth was primarily propelled by the introduction of new products, with price erosion partially offsetting the positive foreign exchange move. A new product launch was the primary driver of QoQ increase.

Commenting on the results, Co-Chairman & MD, G V Prasad said: "We delivered another quarter of strong results with highest ever sales and profits, driven by market share gains & momentum in our US generics business and robust growth in Europe. We are continuing to strengthen our pipeline both organically and through business development to drive growth and create differentiation."