Dr Reddy’s Q3 Results: PAT jumps 77% YoY to Rs 1,247 crore, beats estimates

According to an ET Now poll, analysts were expecting PAT at Rs 910 crore and revenue at Rs 5,830 crore.

During the quarter, the company’s gross margin increased to 59.2% up from 53.8% in the year-ago period.

“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,” DRL’s Co-chairman and Managing Director G V Prasad said.

The 545 bps increase in gross profit margin over previous year was driven mainly due to new product launches with higher margins, favorable products mix and favorable forex movement, which was partly offset by price erosion. Margins have marginally increased by 15 bps sequentially.

Gross profit margin for global generics and PSAI business segments are at 64.6% and 18.2%, respectively.

Revenues in the global generics segment came in at Rs 59.2 billion. Year-on-year growth of 33% and sequential growth of 6% was primarily driven by new product launches, increase in volumes of our base business and favourable forex movement, offset partially due to price erosion in our generic markets, the company said.North America market saw revenue growth of 64% YoY, Europe 6%, India 10% and emerging markets 14%.

In Pharmaceutical Services and Active Ingredients (PSAI) segment, YoY growth of 7% was driven by favourable forex movement and increase in volumes partly offset by price erosion, it said.

DRL reported EBITDA at Rs 19.7 billion in Q3 while the EBITDA margin was at 29% during the quarter.

Shares of the company closed at Rs 4196.40, down 1.3%, ahead of the announcement of the quarterly earnings.