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• Consolidated Revenue: INR8,359 crores (USD977 million), 16% YoY growth, 4% QoQ growth.

• Gross Profit Margin: Approximately 59%, increased by 19 basis points YoY, decreased by 91 basis points QoQ.

• SG&A Spend: INR2,412 crores (USD282 million), 19% YoY increase, 5% QoQ increase.

• R&D Spend: INR666 crores (USD78 million), 20% YoY increase, 8% QoQ decrease.

• EBITDA: INR2,298 crores (USD269 million), 9% YoY increase, flat QoQ.

• EBITDA Margin: 27.5%, decreased by 176 basis points YoY, 95 basis points QoQ.

• Profit After Tax: INR1,413 crores (USD165 million), 2% YoY growth, 13% QoQ growth.

• EPS: INR16.94.

• Operating Working Capital: INR12,782 crores (USD1.49 billion).

• CapEx Cash Outflow: INR709 crores (USD83 million).

• Net Cash Surplus: INR1,603 crores (USD187 million).

• North America Generics Revenue: USD401 million, flat YoY, 10% QoQ decline.

• European Generics Revenue: USD134 million, 142% YoY growth, 14% QoQ growth.

• Emerging Market Revenue: INR1,436 crores, 12% YoY growth, 1% QoQ decline.

• India Business Revenue: INR1,346 crores, 14% YoY growth, 4% QoQ decline.

• PSAI Business Revenue: USD97 million, 3% YoY growth, 3% QoQ decline.

• Warning! GuruFocus has detected 7 Warning Signs with NTRS.

Release Date: January 23, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Dr Reddy's Laboratories Ltd (NYSE:RDY) reported a double-digit top line growth of 16% year-on-year, driven by strong performance across various segments.

• The company achieved its highest ever quarterly revenues and EBITDA in Q3 FY25, with EBITDA margins at 27.5%.

• Successful integration of the Nicotine Replacement Therapy (NRT) business contributed significantly to revenue growth.

• Dr Reddy's Laboratories Ltd (NYSE:RDY) launched innovative products such as toripalimab and elobixibat, enhancing its portfolio in India.

• The company made progress in its biosimilars journey, securing marketing authorization for rituximab in the UK and filing denosumab in both the US and Europe.

Negative Points

• The gross profit margin decreased sequentially by 91 basis points, impacted by price erosion.

• SG&A expenses increased by 19% year-over-year, driven by higher logistics costs and investments in new business initiatives.

• The US generics business faced challenges with price erosion and competition, leading to a sequential decline in revenue.

• The India business experienced slower growth in the cardiac and gastrointestinal segments, impacting overall performance.

• The company received a Form 483 with seven observations from the US FDA inspection at its Hyderabad facility, indicating potential compliance issues.