Dr Reddy's Q4 profit jumps 44% YoY to Rs 434 crore; Ebitda margin improves to 22%

NEW DELHI: Pharma major Dr Reddy's Laboratories on Friday reported a 44 per cent year-on-year (YoY) rise in profit at Rs 434.40 crore in March quarter compared with Rs 302.20 crore in the same period last year. On a sequential basis, profit was down 10 per cent.

Sales for the quarter rose 14 per cent to Rs 4,016.60 crore from Rs 3,534.90 crore in the year-ago period.

Ebitda margin for the quarter stood at 22 per cent against 22.5 per cent in December quarter and 16.3 per cent in the corresponding quarter last year.


Gross profit margin for the quarter came in at 52.4 per cent. On a sequential basis, it was down 150 basis points, primarily on account of adverse forex rate, change in the business mix, higher manufacturing overheads due to certain one-off charges and overhead impact on inventory movement.

The margin was down 100 basis points on a yearly basis on account of price erosion, partially offset by new launches and favorable forex rates.

The decline in gross margin was partially offset due to revenue recognition on PP Derma products, the company said in a BSE filing.

The board of the company has recommended a dividend of Rs 20 per equity share on face value of Rs 5 for FY19.