Shares of Dr Reddy’s Laboratories dropped by 5.19% to ₹1,222.50 on Friday, January 24, 2025, following the release of its Q3 FY25 financial results. The decline comes despite the company reporting record revenues, as its profit growth remained subdued.
Key Financial Highlights:
- Profit After Tax (PAT): ₹1,414.3 crore, a marginal 2% increase from ₹1,379 crore in Q3 FY24.
- Revenue: ₹8,359 crore, up 16% YoY compared to ₹7,215 crore in Q3 FY24.
- Global Generics Revenue: ₹7,375 crore, a 17% increase YoY.
- European Market: Revenue surged 143% YoY to ₹1,209.6 crore, driven by the nicotine replacement therapy (NRT) business acquired from Haleon Plc.
- North American Market: Revenue slid 1% YoY to ₹3,383 crore.
- India Market Revenue: ₹1,346 crore, up 14% YoY.
- Emerging Markets Revenue: ₹1,436 crore, a 12% YoY growth.
Key Drivers:
The company attributed the double-digit growth in revenue to its newly acquired NRT business, new launches, and improved operational efficiencies. However, the lack of substantial growth in PAT and a decline in revenue from the North American market impacted investor sentiment.
Dr Reddy’s co-chairman and managing director, GV Prasad, highlighted the robust contributions from new acquisitions and launches as key drivers for revenue growth.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions.
