Shares of Dr Reddy’s Laboratories jumped more than 4% in today’s trade after the pharmaceutical major reported a stronger-than-expected performance for the third quarter, outperforming street estimates on profit, revenue, and operating earnings. As of 9:36 AM, the shares were trading 4.53% higher at Rs 1,209.60.
For Q3, Dr Reddy’s posted a consolidated net profit of ₹1,209 crore, comfortably above the CNBC-TV18 poll estimate of ₹1,132 crore. Revenue for the quarter stood at ₹8,753 crore, also exceeding expectations of ₹8,273 crore.
Operating performance remained resilient, with EBITDA reported at ₹1,887.4 crore versus the estimated ₹1,803 crore. The EBITDA margin for the quarter came in at 21.5%, slightly below the market expectation of 21.80%.
On a year-on-year basis, profitability saw a decline, reflecting tougher base effects and margin compression. Net profit fell 14.5% compared to ₹1,413 crore in the corresponding quarter last year. Revenue, however, recorded a growth of 4.4%, rising from ₹8,381 crore.
EBITDA declined 17% year-on-year from ₹2,273 crore, while margins contracted sharply to 21.5% from 27.1% in the same quarter last year.
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