Dr Reddy's Q1 results : Net profit jumps 18% to Rs 1,402.5 crore

Dr. Reddy's Laboratories, a leading pharmaceutical company, reported an 18.1 per cent increase in net profit at Rs 1,402.5 crore for the quarter ending June 30, 2023. 

The revenue for the drugmaker also showed impressive growth, rising by 29.2 per cent to Rs 6,738.4 crore compared to Rs 5,215.40 crore in the previous year. 

The company's EBITDA for the quarter was Rs 2,137.2 crore, with an EBITDA margin of 31.7 per cent for April-June, slightly lower than the 34.1 per cent in the year-ago period.

In terms of revenue mix, North America remained the largest contributor with 47 per cent share, followed by emerging markets and India each at 17 per cent share, and Europe at 8 per cent.

Furthermore, Pharmaceutical Services and Active Ingredients (PSAI) contributed to 10 per cent of the total revenue.

The company's expenses on research and development (R&D) stood at 7.4 per cent of revenues in the quarter, amounting to Rs 498.4 crore.

Commenting on the results, co-chairman and MD G V Prasad said: ''We delivered strong sales growth and witnessed robust margin expansion in Q1 FY24 driven by market share gains and new product momentum in our US generics business and superior performance in Russia.

We are on track in executing our strategy, delivering growth while continuing to invest in future growth drivers and innovation to create sustainable value.'' Revenues from global generics stood at Rs 6,101 crore a year-on-year growth of 36 per cent driven by North America, emerging markets and Europe.

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