 "Dr Reddy's Labs Q3 results: PAT rises 2.5% at Rs 1,413 cr, revenue up 16%")
Dr Reddy’s Laboratories (DRL) on Thursday reported a 2.5 per cent year-on-year (Y-o-Y) increase in its consolidated net profit for the third quarter of the financial year 2025 (Q3FY25) at Rs 1,413 crore.
The Hyderabad-based firm recorded its highest-ever revenue from operations during the period, which rose by 16 per cent to Rs 8,358.6 crore.
Sequentially, the company’s profit after tax (PAT) or net profit rose by 13 per cent and revenue grew by 4 per cent from Rs 1,255.3 crore and Rs 8,016.2 crore recorded in Q2FY25 respectively.
The growth was largely driven by revenue from its recently acquired nicotine replacement therapy (NRT) portfolio and performance in the European and emerging markets.
GV Prasad, co-chairman and managing director, DRL said that the company delivered double digit growth, aided by the newly acquired NRT business, new launches and improved operational efficiencies.
“We remain committed to addressing patient needs by advancing healthcare through access, affordability and innovation,” he added.
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DRL added in its statement that the underlying on-year revenue growth excluding NRT was 7.5 per cent for the December quarter, with the actual Q3 results including additional revenue of Rs 605 crore from the NRT business.
The company’s earnings before interest, tax, depreciation and amortisation (Ebitda) for the quarter under review stood at Rs 2,298 crore, growing at 8.9 per cent compared to the same period last year.
DRL’s Ebitda margin however shrank to 27.5 per cent during the December quarter from 29.3 per cent in the same quarter previous year.
The company’s Global Generics (GG) segment revenue saw a 17 per cent Y-o-Y increase in Q3FY25, while the pharmaceutical services and active ingredients (API) segment witnessed a 5 per cent on-year growth in revenue.
“This was primarily driven by increased sales volumes and successful new product launches across various markets, including emerging markets and Europe,” the company stated.
DRL’s revenue in the European region, which makes up for 14 per cent of the company’s revenue, grew by 143 per cent Y-o-Y, reaching Rs 1209.6 crore in the December quarter.
“The growth was primarily on account of revenues from the acquired NRT Portfolio, new product launches and momentum in the base business, partly offset by price erosion,” the company stated.
The company, however, saw a flat performance in the North America market, with revenue at Rs 3,383.4 crore, a 1 per cent Y-o-Y rise. The North America market contributes 40 per cent to its overall revenue.
“The flat on-year growth comes despite volume growth, new product launches and favourable forex, which was offset by price erosion,” DRL added.
In emerging markets, revenues increased by 12 per cent Y-o-Y, primarily due to market share expansion and new product introductions. Russia and the Rest of World (RoW) territories were key contributors to this growth.
The company announced its Q3FY25 results post market hours. On Thursday, DRL’s shares fell by 0.54 per cent, closing at Rs 1,289.35 apiece on the Bombay Stock Exchange (BSE).