Dr. Reddy's Laboratories Q2 Results FY2023, Net Profit at Rs. 11.1 billion

On 28th October 2022, Dr. Reddy's Laboratories announced its second quarter results for the period ending 30th September 2022. 

Q2FY23 Performance updates:

- The revenue from operations stood at Rs. 63.057 billion
-   EBITDA is at Rs. 19.3 billion and the EBITDA margin is 30.6%
- Profit before Tax at Rs. 16.1 billion, increased by 27% year-on-year and by 10% sequentially. 
- Profit after Tax at Rs. 11.1 billion. The effective tax rate is 30.9% for the quarter. 
- Capital expenditure is at Rs. 2.5 billion.  
 

Business Highlights:

- Revenues from the Global Generics segment at Rs. 55.9 billion, with a growth of 18% YoY and sequential quarter growth of 26% driven by the launch of the Lenalidomide capsules in the US market. 
- Revenues from North America at Rs. 28.0 billion, with a growth of 48% YoY and sequential quarter growth of 57%, driven by the launch and scale-up of new products and favorable movement of forex rates. During this quarter, the company launched 7 new products. 
- Revenues from Europe at Rs. 4.2 billion, with a growth of 2% YoY and sequential quarter growth of 1 %. This was driven by volume traction in base business and new product launches across the markets, however, it was partially offset by price erosion in some molecules and the impact of adverse forex rates during the quarter. The company launched ten new products across countries during this quarter. 
- Revenues from India at Rs. 11.5 billion, with a growth of 1% YoY impacted due to a higher base of Q1 FY22, which included a contribution from covid product sales. The company launched two new products during the quarter.
- Revenues from Emerging Markets at Rs. 12.2 billion, with a decline of 6% YoY and sequential quarter growth of 36%.  Revenues for Russia at Rs. 5.9 billion on account of new product launches, an increase in sales prices, and favorable movement of forex rates, partly offset by the reduction in base volumes. Revenues from other CIS countries and Romania at Rs. 2.2 billion with a decline of 1% YoY due to a reduction in base volumes and adverse movement of forex rates, partly offset by increase in sales prices and new product launches. 
- Revenues from the Rest of World (RoW) markets at Rs. 4.1 billion, with a decline of 18% YoY was on account of a reduction in the covid product sales in the current quarter vs. last year, a decrease in sales prices, which was partly offset by new product launches.
- Revenues from Pharmaceutical Services and Active Ingredients (PSAI) at Rs. 6.4 billion with a year-on-year decline of 23% and sequential decline of 9%. 

Commenting on the results, Co-Chairman & MD, G V Prasad said "We are pleased with the strong financial performance in the current quarter, driven by the launch of Lenalidomide capsules in the US market. Our focus is to build a robust pipeline with products that improve affordability and access to patients globally. We continue to progress well in our productivity, innovation, and sustainability agenda.”
 

Dr. Reddy Lab's share price dropped by 0.64%.