Dr Reddy’s PAT grows multi-fold to `959 cr in Q4

Dr Reddy's Laboratories Ltd on Wednesday reported 996 per cent year-on-year growth in its consolidated profit after tax (PAT) to Rs 959.2 crore in January-March quarter (Q4) of FY 2022-23 due to low base during the same quarter previous year. Its PAT was Rs 87.5 crore in the Q4 period of FY22.

Parag Agarwal, Chief Financial Officer of Dr Reddy's, said: “Revenues for the quarter under discussion was up by 25 per cent to Rs 6,297 crore on the back of strong growth from North America, Europe and Indian markets, against Rs 5,437 crore in Q4 of last fiscal.”

For the full financial year, the PAT increased 91 per cent at Rs 4507 crore against Rs 2,357 crore in FY22, while revenues went up by 15 per cent to Rs 24, 588 crore during the last fiscal against Rs 21,439 crore in FY22. “This (FY23) has been a record year for us with a double digit growth in revenues as well as profits. Our revenue growth has been supported by new product launches and we have seen strong underlying growth momentum in all our businesses,” Agarwal told reporters in a press conference.

He further said the strong financial performance reflected in strong cash flows. The drug maker currently has over Rs 5,000 crore cash surplus in the Balance Sheet.

The Board has recommended payment of a dividend of Rs. 40 per equity share of face value Rs 5 each (800 per cent of face value) for the year ended March 31, 2023 subject to approval of the shareholders of the company. The revenues from global generics during the fourth quarter stood at Rs 2,530 crore a YoY growth of 27 per cent. Dr Reddy's during the quarter, launched six new products taking the total launches of the year to 25 products.

Sales from India witnessed 17 per cent growth at Rs 1,280 crore attributable to increase in prices of the existing products, along with additional revenues from the launch of new products.

Europe revenues in Q4 stood at Rs 500 crore with 15 per cent growth while emerging markets contributed Rs 1,110 crore in the fourth quarter up seven per cent compared to the same period in FY22.

The Pharmaceutical Services and Active Ingredients (PSAI) segment revenues were up three per cent to Rs 778 crore against Rs 756 crore in Q4 of FY22.

The company spent Rs 1,940 crore on Research and Development expenses in FY23 and is expected to spend 8-9 per cent on total sales in the current fiscal, Agarwal said.

The official said during the last fiscal Dr Reddy's made a significant progress on Rituximab with filings done in USA, Europe and UK and as far as Tocilizumab is concerned Phase-3 studies began.