In This Article:
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Consolidated Revenue: INR8,016 crore (USD957 million), 17% YoY growth, 4% sequential growth.
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Gross Profit Margin: 59.6%, increased by 92 basis points YoY, decreased by 81 basis points sequentially.
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SG&A Expenses: INR2,301 crore (USD275 million), 22% YoY increase, 1% sequential increase.
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R&D Spend: INR727 crore (USD87 million), 33% YoY increase, 17% sequential increase, 9.1% of sales.
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EBITDA: INR2,280 crore (USD272 million), 5% YoY increase, 6% sequential increase, EBITDA margin at 28.4%.
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Profit Before Tax (PBT): INR1,917 crore (USD229 million), PBT margin at 23.9%.
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Profit After Tax (PAT): INR1,342 crore (USD160 million), PAT margin at 16.7% of revenues.
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Free Cash Flow: INR204 crore (USD24 million).
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Net Cash Surplus: INR1,889 crore (USD226 million) as of September 30, 2024.
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North America Generic Revenue: USD445 million, 16% YoY growth, 4% sequential decline.
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European Generic Revenue: EUR63 million, 7% YoY and sequential growth.
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Emerging Markets Generic Revenue: INR1,455 crore, 20% YoY growth, 23% sequential growth.
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India Business Revenue: INR1,397 crore, 18% YoY growth, 5% sequential growth.
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PSAI Business Revenue: USD100 million, 18% YoY growth, 9% sequential growth.
Release Date: November 05, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Dr Reddy's Laboratories Ltd (NYSE:RDY) reported a strong performance with a 17% year-over-year revenue growth, reaching USD 957 million.
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The company achieved its highest ever quarterly sales, driven by broad-based topline growth and healthy operating margins.
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Successful completion of acquisitions, including the Nicotine portfolio and a joint venture with Nestle India, is expected to enhance future growth.
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The company secured marketing authorization from the European Commission for its rituximab biosimilar, marking its first such approval in Europe.
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Dr Reddy's Laboratories Ltd (NYSE:RDY) continues to focus on developing a robust pipeline of small molecules, biosimilars, and innovative products, with significant R&D investments.
Negative Points
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There was a sequential decline of 4% in the North America generic business, attributed to supply chain adjustments and inventory management.
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The company faced a 100% impairment loss on intangibles related to a product in the main portfolio due to procurement constraints from contract manufacturers.
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SG&A expenses increased by 22% year-over-year, driven by investments in new business initiatives and acquisition-related costs.
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The effective tax rate for the quarter was high at 30%, impacted by amendments in the Finance Act 2024.
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The company's emerging markets business, while showing strong growth, is subject to currency fluctuations, particularly in regions like Russia.