Dr. Reddy’s Laboratories has released its consolidated financial results for the second quarter of fiscal year 2025 (Q2 FY25), reporting notable growth in revenue. The company’s board also approved a substantial investment in its Russian unit, signaling its commitment to expanding international operations.
Key Financial Highlights:
- Revenue: Dr. Reddy’s recorded revenue of ₹8,016 crore in Q2 FY25, a 16.5% increase compared to ₹6,880 crore in the same period last year.
- Profit After Tax (PAT): The company’s PAT stood at ₹1,255.7 crore, down by 15.3% from ₹1,482.2 crore in Q2 FY24, indicating some pressure on net profitability.
- EBITDA: EBITDA rose to ₹2,146.8 crore, reflecting a 7.8% growth from ₹1,991.4 crore in the prior-year quarter, showcasing Dr. Reddy’s operational resilience.
- EBITDA Margin: Margins stood at 26.8%, a decrease of 216 basis points from 28.9% in Q2 FY24, pointing towards increased operational costs or pricing pressures.
Strategic Investment:
In a significant development, Dr. Reddy’s board has approved an equity investment of ₹600 crore in its Russia unit. This investment highlights the company’s focus on strengthening its presence in key international markets, especially amid rising global demand for pharmaceuticals.
Dr. Reddy’s Q2 FY25 performance underscores its solid revenue growth trajectory, even as it faces challenges in maintaining margin levels. The company’s strategic move to invest in Russia is expected to enhance its foothold in international markets and drive future growth.
