InvestorQ : How were the quarterly numbers of Reddy Labs for Q2FY23?
Arusha Ray made post

How were the quarterly numbers of Reddy Labs for Q2FY23?

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1 month ago
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For the September 2022 quarter, Dr. Reddy's Labs reported 9.4% higher sales revenues at Rs6,306 crore on a consolidated basis. Among various verticals, the global generics business witnessed 18% growth at Rs5,595 crore while the vertical of pharma services and API fell by -19% at Rs811 crore. For the quarter, the R&D expenses stood at Rs487 crore which translates into 7.7% of revenues. That is well above the industry median. Within global generics, North America grew 48% while growth in Europe and India was flat. North America accounted for close to 44% of revenues while EMs were 19% and Indian markets 18%.

Dr Reddy’s Labs

Rs in Crore

Sep-22

Sep-21

YOY

Jun-22

QOQ

Total Income (Rs cr)

₹ 6,305.70

₹ 5,763.20

9.41%

₹ 5,215.40

20.91%

Net Profit (Rs cr)

₹ 1,112.80

₹ 992.00

12.18%

₹ 1,187.60

-6.30%

Diluted EPS (Rs)

₹ 66.89

₹ 59.65

₹ 71.40

Net Margins

17.65%

17.21%

22.77%

Let me now turn to the profit story of Reddy Labs. PAT grew yoy at 12.2% for the September 2022 quarter at Rs1,113 crore albeit down by about -6.3% on sequential basis. The earnings before interest, tax, depreciation and amortization (EBITDA) came in at Rs1,932 crore with EBITDA margins at 30.6%. Gross margins were robust at 59.1% with global generics segment enjoying record high 65% gross margins. The leverage risk is extremely low for the company with net debt to equity ratio of just about 0.07X. Net profit margins at 17.65% in Q2FY23 is better compared to 17.21% in Q1FY22, albeit lower than 22.77% in Q1FY23.

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