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May 08, 2024 10:01 AM IST
Dr Reddy's share price: Dr Reddy's said that its net profit was 3% lower sequentially compared to ₹13,738 crore seen in the December'2023 quarter.
Dr Reddy's share price: The share price of Dr Reddy's Laboratories fell 5% today (May 8) after the company reported its Q4 earnings. Dr Reddy’s Laboratories Ltd (DRL) reported a net profit of ₹1,307 crore for the quarter ended March (Q4FY24) which rose 36% year-on-year over ₹159.2 crore in the year ago quarter.
Dr Reddy's share price: Dr Reddy’s Laboratories Ltd (DRL) reported a net profit of ₹1,307 crore for the quarter ended March (Q4FY24). Dr Reddy's Q4 results
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The company said that its net profit was 3% lower sequentially compared to ₹13,738 crore seen in the December'2023 quarter. North America sales of the company contributed 45% to overall revenues though grew 29% year-on-year to ₹3262.6 crore. This was 3% lower sequentially, the company said.
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What brokerages said on Dr Reddy's stock and Q4 results?
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Brokerage firm Nomura said that the drugmaker reported strong gross margin and operational performance in Q4 owing to Revlimid. Nuvama Institutional Equities also said the same, adding, “The US business benefitted from yet another quarter with Revlimid contribution ($110–130 million).”
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Nuvama also said that it expects higher R&D costs (as a percentage of sales) to sustain for the next couple of years due to Dr Reddy's pipeline for the Horizon 2 program. Global brokerage firm Jefferies said that it expects the drugmaker's EBITDA margin for FY25 to also be pressurised by a weak US launch pipeline.
Meanwhile, Motilal Oswal Financial Services said that it expects earnings growth for Dr Reddy's to moderate to a 3.5 percent CAGR over FY24-26 owing to a gradual build-up of market share of Revlimid generic.
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