Dr Reddy’s Laboratories Ltd. Q2FY25 Result First Cut

November 06, 2024 : The Company reported revenue growth of 16.5% YoY and 4.4% QoQ to Rs. 8,038 crores, above market expectations of Rs. 7,717 crores.
– The Global Generics (GG) segment witnessed broad based revenue growth of 17.0% YoY / up 4.0% QoQ to Rs. 7,158 crores, driven by improved sales volumes and new product launches. Emerging Markets and Europe primarily drove sequential growth.

– EBITDA increased 3.4% YoY / down 2.5% QoQ to Rs. 2,077 crores, while EBITDA margin stood at 25.8% (down 326bps YoY / down 184bps QoQ) in Q2FY25, owing to a contraction in gross margins by 110 bps QoQ to 70.6% the decline was primarily on account of change in mix.

– Profit after Tax stood at Rs. 1,342 crores (down 9.5% YoY / down 3.6% QoQ) in Q2FY25, below market expectations of Rs. 1,427 crores. The PAT margin was 16.7% versus 18.1% in the previous quarter.

– R&D expenses stood at Rs. 727.1 crores (9.1% of sales), and the company continued to invest in R&D to build a healthy pipeline of new products across markets for biosimilars as well as novel oncology assets, which will support future growth.

– During the quarter, the company had two new ANDAs with the USFDA, taking the year-to-date ANDA filing count to three. As of 30 September 2024, 80 generic filings are cumulatively pending approval with the USFDA (75 ANDAs and 5 NDAs under 505(b)(2) route).

– The company entered into a non-exclusive patent licensing agreement with Takeda to commercialise Vonoprazan, a novel gastrointestinal drug, in India.

– During the quarter, the company launched three new brands in the domestic market, taking the YTD total to 16. The company also integrated the nutraceutical products under a subsidiary, Dr Reddy’s and Nestle Health Science Ltd.