Dr Reddy's Q4 results: Profit up 36% at Rs 1,310 crore; Rs 40 dividend declared

Dr Reddy's Laboratories Ltd on Tuesday reported a consolidated net profit after tax of Rs 1,310 crore during the fourth quarter (Q4 FY24), up 36.46 per cent from Rs 960 crore in the year-ago period.

The drugmaker's total revenue climbed 12.65 per cent to Rs 7,114 crore in Q4 FY24 as against Rs 6,315 crore in the corresponding period last year.

"The company reported revenue growth of 12.6 per cent YoY / down 1.7 per cent QoQ to Rs 7,114 crore and above market expectations of Rs 6,927 crore. The global generics (GG) segment witnessed a revenue growth of 13 per cent YoY / down 3 per cent QoQ to Rs 6,120 crore. This was primarily driven by increased base business volumes and new product launches, despite price erosion in certain markets. The sequential decline can be attributed to a change in product mix, price erosion, and an unfavourable forex impact," said Prathamesh Masdekar, Research Analyst at StoxBox.

Dr Reddy's long-term growth outlook remains intact and we expect the company to continue to deliver robust performance in the upcoming quarters, led by new product launches, market share gains and an increased volume of the base business, Masdekar further stated.

Dr Reddy's also appointed its new chief financial officer. MV Narasimham, who is currently the deputy CFO, will take over the role from Parag Agarwal, who held the post since 2020 and will retire on July 31.

In addition, the pharma firm declared a dividend of 40 rupees per share for FY24.

The quarterly earnings were announced post-market hours today. Dr Reddy's shares settled 0.66 per cent lower at Rs 6,259.15.