Pharma giant Dr. Reddy’s Laboratories Ltd declared its financial results for the quarter ended June 2023. It had a robust quarter. The company reported a Profit After Tax (PAT) of ₹1402.5 crore, showing an impressive growth of 46% sequentially (QoQ) and 18% year-on-year (YoY). Simultaneously, the total revenues of the firm experienced a rise of 7% QoQ and an impressive 29% YoY, amounting to ₹6,738.3 crore.
The company’s EBITDA for Q1FY24 reached ₹2,137.2 crore, representing a good 31.7% margin of the revenues, compared to ₹1,778.9 crore during the corresponding quarter of the previous year.
Additionally, the free cash-flow for Q1 FY24 stood at ₹670 crore (before acquisition payout), while the net cash surplus for the company reached ₹4,980 crore as of June 30, 2023.
Following these robust Q1 results, Dr. Reddy’s share price reached a 52-week high during Thursday’s session. The stock continued its rally on Friday. The stock closed at Rs.5583 on NSE.
Dr. Reddy attributed the impressive 36% increase in global generics’ Q1 sales to regions like North America, emerging countries, and Europe. Notably, revenue from North America saw a significant 79% rise, reaching ₹3,200 crore, while Europe’s revenue reached ₹510 crore. However, the revenue from India experienced a decline of 14%, settling at ₹1,150 crore.
The management further highlighted that revenue from emerging markets reached ₹1,160 crore for the quarter, with a 28% YoY growth . Its revenue from Russia witnessed a huge 75% increase, reaching ₹560 crore.