Pharmaceutical company Dr Reddy’s Laboratories on Tuesday recorded its third quarter profit for the financial year 2023-24 at Rs 1380.90 crore, up 11 per cent in comparison to Rs 1243.90 crore during the corresponding quarter of previous year, beating estimates. It posted revenue from operations at Rs 7236.80 crore, up 6.6 per cent as against Rs 6789.80 crore during the third quarter of FY23. The revenue growth, it said, was primarily driven by market share gains for the company’s existing products in North America and continuation of the growth journey in Europe.
According to a CNBC TV18 poll, Dr Reddy’s was expected to report Q3FY24 profit at Rs 1293.9 crore and revenue for the quarter in review was estimated at Rs 6903.6 crore. While the total income reported by the pharmaceutical firm during the quarter in review was at Rs 7453.00 crore, total expenses incurred by the company during Q3FY24 stood at Rs 5626.60 crore.
GV Prasad, Co-Chairman & MD, said, “We delivered another quarter of highest ever sales and robust financial performance aided by new products performance and base business market share gain in the US, new products launch momentum and strong performance in Europe. We continue to strengthen our core businesses and invest in innovative products in including strategic collaborations for novel molecules to meet unmet needs of patients.”
Dr Reddy’s Q3 performance across key businesses
Global Generics (GG)
Q3FY24 revenue for Global Generics business was recorded at Rs 6310.00 crore, up 7 per cent on-year. “YoY growth was primarily driven by increase in volumes of our base business, new product launches, partially offset by price erosion in certain markets,” the company said.
North America: Q3FY24 revenue for the North America market was at Rs 3350.00 crore, up 9 per cent on-year. YoY growth was on account of market share expansion in certain existing key products and revenues from new product launches, partly offset by price erosion. During the quarter, the pharma major launched 4 new products in the region, of which 2 were launched in the US. It filed 2 new Abbreviated New Drug Applications (ANDAs) with the USFDA during Q3FY24.
Europe: Q3FY24 revenue in the Europe region was at Rs 500 crore, up 15 per cent YoY, primarily on account of contribution from new product launches, improvement in base business volumes and favourable currency exchange rate movements, partly offset by price erosion. Germany business was at Rs 270 crore, recording YoY growth of 21 per cent. UK/OL was at Rs 140 crore, up 9 per cent YoY. Rest of Europe business was at Rs 90 crore, up 11 per cent on-year. During the quarter, the firm launched 6 new products in the region.
India: Q3FY24 revenue in India was at Rs 1180 crore, up 5 per cent YoY, largely attributable to revenues from new product launches. During the quarter, the pharma company launched 3 new brands in the country.
Emerging markets: Q3FY24 revenue at Rs 1280 crore, reporting YoY decline of 2 per cent, attributable to unfavorable forex movement. Revenue from Russia was at Rs 590 crore, posting YoY decline of 14 per cent. The YoY decline, it said, was majorly due to unfavorable currency exchange rate movements and high base business. Revenue from other CIS countries and Romania was at Rs 230 crore, up 4 per cent YoY, primarily on account of increase in price of certain brands, new product launches and favorable forex. Revenue from Rest of World (RoW) territories was at Rs 460 crore, up 16 per cent on-year, largely attributable to contribution from new products.
Pharmaceutical Services and Active Ingredients (PSAI)
The business segment reported Q3FY24 revenue at Rs 780 crore, up 1 per cent YoY, mainly driven by revenues from new products, favourable forex, partially offset by price decline and low business volumes. Excluding revenue in base period from COVID-19 products, PSAI business grew in double-digit. During the quarter, the firm filed 38 Drug Master Files (DMFs) globally.