Dr Reddy's Labs Q2 Results: Profit falls 15% YoY to Rs 1,255 crore, revenue up 17%

Healthcare major Dr Reddy's Labs on Tuesday reported 15% drop in its consolidated net profit at Rs 1,255 crore in the second quarter. It was Rs 1,480 crore in the year-ago quarter.

Revenue from operations in the same period stood at Rs 8,016 crore, which was up 17% year-on-year.

EBITDA for the quarter rose 5% year-on-year to Rs 2,280 crore in the July-September 2024 period, while margins improved marginally to 28.4% in the same period.


"We delivered another good quarter and maintained the growth momentum across businesses. We made progress on our future growth drivers, operationalized our venture with Nestle and completed the acquisition of Nicotinell® and related brands," said GV Prasad, Co-Chairman & MD, Dr Reddy's said.

The strong revenue growth during the quarter was primarily driven by growth in global generics revenues. The sequential growth was led by global generics revenues in Emerging Markets, India, Europe as well as PSAI.

The global generics revenues during the second quarter came in at Rs 7,160 crore, showing a YoY growth of 17%, driven by improved sales volumes and new product launches.

The North America revenues clocked a growth of 17% YoY to Rs 3730 crore, largely on account of increase in sales volumes, partly offset by price erosion.

During the quarter, the pharma major launched four new products in the region, all of which were in the US. A total of 7 products were launched during the half year ended September 2024.

Europe's revenues grew 9% YoY to Rs at Rs 1580 crore due to leveraging the portfolio to launch new products, partly offset by price erosion.

Dr Reddy's saw India business revenues rising at 18% YoY to Rs 1400 crore, which was led by revenues from the vaccine portfolio in-licensed from Sanofi, new products launched as well as price increases.

The emerging markets Q2FY25 revenues at Rs 1460 crore, showing YoY growth of 20%, which is attributable to market share expansion as well as new product launches.

On Tuesday, Dr Reddy's shares closed 0.7% higher at Rs 1,276.9 on NSE.