Dr Reddys Lab reports Q3 PAT at Rs 706 cr

The drug maker reported a consolidated net profit of Rs 706.50 crore in Q3 December 2021, steeply higher than 19.80 crore in Q3 December 2020.

On a consolidated basis, the company's revenue from operations rose 7.91% to Rs 5319.70 crore in in Q3 December 2021 over Q3 December 2020. Profit before tax soared 242% year-on-year to Rs 970.90 crore in Q3 December 2021.

During the quarter, EBITDA was reported at Rs 1265.90 crore (up 6.82% YoY). The EBITDA margin stood 23.8% in Q3 December 2021 higher than 24% in Q3 December 2020 and 27% in Q2 September 2021.

Selling, General & Administrative (SG&A) expenses rose 7% YoY and fell 3% QoQ to Rs 1541.10 crore. This YoY increase was in line with the business growth and primarily attributable to investments in sales & marketing of the company's key brands and annual increments. Sequentially the SG&A expenses decreased majorly due to lower royalty on sales in this quarter.

Research and Development (R&D) expenses rose 1% to Rs 415.90 crore.

The company reported impairment charge of Rs 4.70 crore in Q3 FY22 compared with Rs 600 crore charge in Q3 FY21 taken on intangibles pertaining to certain products.

Other operating income stood at Rs 24 crore in Q3 FY22 compared to Rs 12.8 crore in Q3 FY21.

Net Finance income stood at Rs 28.9 crore in Q3 FY22 compared to Rs 49.3 crore in Q3 FY21.

Commenting on the results, Co-chairman & MD, G V Prasad said "We delivered a steady performance in Q3 with healthy EBITDA and strong cash generation, while continuing to invest in building a pipeline of products across businesses. I am pleased that our early adoption and consistency in furthering our sustainability agenda have been recognised with prestigious awards in the last few months. ESG will remain a key focus area for us."

Revenues from Emerging Markets stood at Rs 1150 crore. Year-on-year growth of 20% and sequential decline of 11%.

Revenues from India market stood at Rs 1030 crore. Year-on-year growth of 7% and sequential decline of 10%.

Revenues from Europe market stood at Rs 410 crore. Year-on-year and sequential decline of 2% each.

Revenues from North America market stood at Rs 1860 crore. Year-on-year growth of 7% and sequential decline of 1%.

Revenues from Global Generics (GG) stood at Rs 4450 crore. Year-on-year growth of 9% and sequential decline of 6%.

Dr. Reddy's Laboratories is an integrated pharmaceutical company. It offers a portfolio of products and services including APIs, custom pharmaceutical services, generics, biosimilars and differentiated formulations. Our major therapeutic areas of focus are gastrointestinal, cardiovascular, diabetology, oncology, pain management and dermatology. Dr. Reddy's operates in markets across the globe. Our major markets include - USA, India, Russia & CIS countries, and Europe.

Shares of Dr. Reddy's Laboratories rose 0.84% to Rs 4292 on the BSE.

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