Dr Reddy’s Labs Q3 Results: Profit grows 2% YoY to ₹1413 crore; revenue up 16% | Stock Market News

Dr Reddy’s Labs Q3 Results: Pharma company Dr Reddy’s Laboratories on Thursday, January 23 announced a 2% year-on-year increase in consolidated profit after tax (PAT) to ₹1,413.3 crore for the quarter ended December 2024 (Q3). The PAT in Q3 of last year stood at ₹1,378.9 crore.

The revenue from operations for the said quarter came in at ₹8,358.6 crore, recording a 16% YoY jump versus ₹7,214.8 crore posted in the December 2023 quarter.

The growth was largely driven by revenues from the recently acquired Nicotine Replacement Therapy(NRT) portfolio, revenues from India and Emerging Markets, the company said.

The global generics segment revenue saw a 17% YoY increase in Q3 while the pharmaceutical services and active ingredients (API) segment witnessed a 5% growth in revenue.

The earnings before interest, tax, depreciation and amortization in Q3 stood at ₹2,298.2 crore as against ₹2,110.7 crore in the same quarter last year and ₹2,280.3 crore in the preceding quarter of FY25.

Meanwhile, the gross margin for the quarter under review was at 58.7%, in line with 58.5% and lower than 59.6% in Q2 FY25.

The company spent ₹6.7 billion on research and development in Q3 FY25, which was 8% of the revenues. R&D investments are related to our ongoing development efforts across complex generics, peptides, biosimilars, as well as our novel oncology assets.

Commenting on the results, Co-Chairman & MD, G V Prasad said, “We delivered double-digit growth aided by our newly acquired NRT business, new launches and improved operational efficiencies. We remain committed to addressing patient needs by advancing healthcare through access, affordability and innovation.”

Performance for 9M FY25

The company’s topline performance for the nine-months ended December was strong, with revenue growing 15% YoY to ₹24047.5 crore. However, profit witnessed a 5% YoY decline to ₹4060 crore.

The EBITDA for the quarter came in at ₹6738.4 crore, higher than ₹6429.3 crore posted in the same quarter of the financial year 2023-24.

Dr Reddy’s Labs share price ended at ₹1289.35, down 0.54% on the BSE.

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