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    Dr Reddy's Labs Q4 Results: PAT sees nine-fold jump to Rs 960 crore, dividend declared at Rs 40/share

    Synopsis

    Indian pharmaceutical major Dr Reddy's Laboratories reports a whopping 890% YoY growth in net profit. Revenue from operations stood at Rs 5,843 crore, up 15.28% YoY, while total expenses fell by 4% to Rs 5,132.2 crore. Company recommends a final dividend of Rs 40 per share for the financial year 2022-23

    Dr Reddy's Labs Q4 Results: Profit jumps nine-fold to Rs 959 crore; dividend declared at Rs 40/share
    Dr Reddy's Laboratories has reported a consolidated net profit of Rs 960.1 crore for the fourth quarter ended March 2023. This is an increase of 890% from Rs 97 crore clocked in the corresponding quarter of last year.

    Its revenue from operations stood at Rs 5,843 crore in Q4 FY23, up 15.28% YoY as compared to Rs 5,068.4 crore in Q4FY22. Meanwhile, total expenses were down by 4% at Rs 5,132.2 crore against Rs 5,348.4 crore in Q4FY22.

    The company recommended a final dividend of Rs 40 (800%) per equity share of Rs 5 each for the financial year 2022-23. The dividend will be paid on or after five days from the date of declaration of the final dividend by the shareholders at the 39th Annual General Meeting (AGM), the company said in an exchange filing.

    Other income during the quarter increased to Rs 138.5 crore as against Rs 121.9 crore in the previous-year period. The company's total income rose 15.3% YoY to Rs 6,453.7 crore for the March quarter. The same was Rs 5,596.8 crore in the same quarter of last year.

    In Wednesday's trade, shares of Dr Reddy's Labs ended 1.3% lower at Rs 4,868 on the BSE. On a year-to-date basis, the stock has surged 15%, while it has risen 25% in the last one year.

    Commenting on the results, Co-Chairman & MD G V Prasad said, "FY 23 has been a year of record sales, profits and cash flow, driven by our performance in US Generics."

    For FY23, revenue for the Global Generic segment stood at Rs 213.8 billion, higher by 19% over FY22. This growth was driven by North America, Europe and India while emerging markets remained flat.

    For the March quarter, consolidated operating profit, calculated as earnings before interest, taxes, depreciation and amortization (EBITDA), rose 26% YoY to Rs 1,631 crore, but was down 17% sequentially. Gross margins expanded sharply by 430 basis points to 57.2%. The spend on research and development (R&D) rose 24% YoY to Rs 537 crore.

    The global generics business reported an 18% YoY growth in revenue to Rs 5,426 crore, with North America witnessing 27% growth. Europe saw 12% growth and India 32% growth in the quarter.

    About 40% of the consolidated revenue for Dr Reddy’s came from North America, and 20% from India.




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