Dr. Reddy’s Laboratories is an Indian multinational pharmaceutical company based in Hyderabad. The company was founded by Kallam Anji Reddy, who previously worked in the mentor institute Indian Drugs and Pharmaceuticals Limited. Dr. Reddy’s manufactures and markets a wide range of pharmaceuticals in India and overseas. The company has over 190 medications, 60 active pharmaceutical ingredients (APIs) for drug manufacture, diagnostic kits, critical care, and biotechnology.
Dr. Reddy’s began as a supplier to Indian drug manufacturers. By the early 1990s, the expanded scale and profitability from these unregulated markets enabled the company to begin focusing on getting approval from drug regulators for their formulations and bulk drug manufacturing plants – in more-developed economies. This allowed their movement into regulated markets such as the US and Europe. In 2014, Dr. Reddy Laboratories was listed among 1200 of India’s most trusted brands according to the Brand Trust Report 2014, a study conducted by Trust Research Advisory, a brand analytics company.
By 2007, Dr. Reddy’s had seven FDA plants producing active pharmaceutical ingredients in India and seven FDA-inspected and ISO 9001 (quality) and ISO 14001 (environmental management) certified plants making patient-ready medications amongst which five are in India and two in the UK.
Quarterly Earnings Walkthrough
Dr Reddy’s Laboratories registered a consolidated net profit spike of 75% to ₹1,244 for the third quarter which ended in December 2022. This is compared to the consolidated net profit of ₹709 crore for corresponding December quarter of the previous fiscal year.
The total revenue from operations has grown by 27 per cent to ₹6,790 crore as compared to ₹5338 crore in the corresponding third quarter of the previous year.
The EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) has risen by 14% Year-on-Year to ₹1,407 crore.
Segment wise performance
The revenues in the global generics segment were registered at ₹5924 crore. It has grown by 33% Year-on-Year and 6% sequentially which has been mainly supported by new product initiations, rise in volumes of base business and suitable forex movement. It has been negated partially due to price erosion in the generic markets.
The North American segment registered a revenue growth of 64% YoY with Rs 30.6 billion. The European segment registered a growth of 6% YoY with Rs 4.3 billion. The Indian segment registered a growth of 10% with Rs 11.3 billion. The emerging markets registered a 14% growth.
Word from the Board
“Our strong financial performance was supported by growth in the US and the Russia markets. We continue to strengthen our development pipeline to reach more patients globally,” said Co-chairman & MD, G V Prasad, Dr Reddy’s.
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