Dr Reddy’s Laboratories Reports Strong Q2 Performance

Dr Reddy’s Laboratories has announced an impressive 33.02% increase in consolidated profit after tax (PAT) to Rs 1,482.2 crore for the second quarter ending September 30. This notable growth was predominantly fueled by the US generics market, according to a regulatory filing by Dr Reddy’s Laboratories Ltd (DRL).

Financial Highlights

The consolidated total revenue from operations surged to Rs 6,902.6 crore, marking a 9% increase compared to Rs 6,331.8 crore in the corresponding period last year. However, total expenses for DRL in the September quarter rose by 11.14% to Rs 5,305.1 crore.

Total income for DRL during this period reached Rs 7,217.6 crore, showing a significant 13.25% uptick.

Leadership Perspective

G V Prasad, Co-Chairman & MD of Dr Reddy’s, expressed satisfaction with the quarter’s performance, emphasizing the highest-ever sales and profits achieved. He attributed this success to market share gains, momentum in the US generics segment, and robust growth in Europe. Prasad also highlighted ongoing efforts to strengthen the pipeline organically and through strategic business development to drive sustained growth and differentiation.

Business Segment Performance

DRL’s global generics segment recorded a revenue of Rs 6,113 crore in Q2, marking a 9.14% increase from the previous year. Notably, North America’s revenue grew by 13% to Rs 3,170 crore, while Europe saw a substantial 26% growth, reaching Rs 528.6 crore.

Revenue from ‘Pharmaceutical Services and Active Ingredients’ also showed a healthy increase, standing at Rs 962.5 crore, up by 16.95% compared to the previous year.

Market Response

Despite these strong financial figures, shares of Dr Reddy’s Laboratories Ltd settled at Rs 5,385.55 on BSE, experiencing a marginal 0.72% decrease from the previous close.