Indian pharmaceutical major, Dr Reddy’s Laboratories, is scheduled to deliver its October-December quarterly earnings for the financial year 2024-25 (Q3FY25) on Thursday, January 23, 2025.
According to analyst estimates compiled by Business Standard, Dr Reddy’s Labs may see its average revenue rise by 14.7 per cent year-on-year (Y-o-Y) to Rs 8,281 crore as against Rs 7,236 crore in the third quarter of FY24. Sequentially the topline may increase by 0.7 per cent compared to Rs 8,038 crore in Q3FY24.
Moreover, the pharma major may register an average net profit of Rs 1,459 crore for the December quarter, against Rs 1,302crore in Q3FY24, which translates to an increase of 12 per cent Y-o-Y for Q3FY25.
On a quarterly basis, profits could rise by 9.8 per cent. The company reported a profit after tax (PAT) of Rs 1,328 crore in the September quarter of FY25. ALSO READ: HDFC Bank Q3 Preview: Analysts estimate weak profit growth; NIM, NPA eyed
Here's what key brokerages anticipate for Dr Reddy’s Labs Q3 FY25 results:
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Axis Securities: Analysts forecast $310 million in base business revenue and $140 million from gRevlimid sales in the US, with overall flat sequential growth in US sales driven by stable gRevlimid contributions. They emphasize the importance of management commentary on US base business trends and margins as key monitorables.
PL Capital: The brokerage highlights that weak US base business performance will be offset by Q-o-Q growth in Revlimid sales. The integration of Sanofi's portfolio is expected to support domestic growth. Commentary on US base business performance and margin trends will be crucial to monitor.
HDFC Securities: Analysts project a sequential decline in the US business due to lower Revlimid sales, with the base business expected to remain steady at $285–290 million. India's revenue is anticipated to grow by 14 per cent Y-o-Y, driven by incremental contributions from the acquired Sanofi vaccine business. The NRT business, incorporated after its acquisition in September 2024, is also expected to support growth. Gross and Ebitda margins are predicted to remain stable. ALSO READ: HUL Q3 preview: Analysts see muted quarter; PAT may rise 2% YoY, revenue 1%
Nuvama Institutional Equities: The brokerage expects Dr Reddy's revenue grew by 17 per cent Y-o-Y and Ebitda by 13 per cent Y-o-Y, with Ebitda margins at 27.5 per cent, supported by gRevlimid contributions. US revenue is projected at $427 million, driven by strong gRevlimid sales. India business growth is estimated at 19 per cent Y-o-Y, comprising 11 per cent organic growth and approximately Rs 900 crore from the vaccine business. Growth in the Rest of the World (RoW) segment is anticipated, aided by improvements in China, Brazil, and Russia.