Dr Reddy's Lab Q3 results: Profit up 2.5% at Rs 1,413 cr, revenue rises 16%

Dr Reddy's Lab Q3 results: Shares of Dr Reddy's closed at Rs 1,289.35 on Thursday ahead of its results

Pharma major Dr Reddy's Laboratories on Thursday reported  a modest 2.5 per cent rise in consolidated net profit at Rs 1,413.3 crore for the third quarter (Q3) of the financial year 2024-25 (FY25). The company has reported a net profit of Rs 1,378.9 crore in the year-ago period. Sequentially, the pharma saw a 12.6 per cent rise in profit from Rs 1,255.3 crore.

 

Dr Reddy's Labs reported a 15.85 per cent year-on-year rise in revenue at Rs 8,358.6 crore from Rs 7,214.8 crore reported during the same period last year. Sequentially, revenue rose marginally by 4 per cent from Rs 8,016.2 crore. 

G V Prasad, co-chairman and managing director of Dr Reddy's, commented on the results, stating, "We delivered double-digit growth aided by our 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."

 

The contribution from the recently acquired nicotine replacement therapy (NRT) business played a pivotal role in bolstering both revenue and profit figures. Excluding this acquisition, the underlying revenue growth for Q3 FY25 was recorded at 7.5 per cent. The NRT business contributed an additional Rs 605 crore in revenue and Rs 124 crore in profit before tax.

 

Dr Reddy's earnings before interest, taxes, depreciation and amortisation (Ebitda) for the fiscal third quarter stood at Rs 2,298 crore, marking an 8.9 per cent increase compared to the previous year. However, the Ebitda margin saw a decline to 27.5 per cent, down from 29.3 per cent in Q3 FY24.

 

Shares of Dr Reddy's closed at Rs 1,289.35 on Thursday ahead of its results, down 0.54 per cent on the BSE.