News

Published: May 11, 2023
Updated: May 11, 2023

Dr. Reddy's Lab Reports Staggering 10-Fold Increase in Q4FY23 Net Profit and Announces 800% Dividend for Shareholders

Dr. Reddy's Lab, a leading pharmaceutical company, has released its Q4FY23 results, showcasing a remarkable surge in net profit and revenue compared to the previous year. However, the performance witnessed a decline on a quarter-on-quarter basis. The company has also declared an impressive dividend of 800% for its shareholders, highlighting its commitment to value creation.

Impressive Q4FY23 Performance:

Dr. Reddy's Lab achieved extraordinary financial growth in the fourth quarter of FY23. The net profit (PAT) skyrocketed by 10 times or 889.79%, reaching ₹959 crore compared to ₹97 crore in Q4FY22. The revenue also exhibited strong traction year-on-year, although there was a decline in performance compared to the previous quarter.

Substantial Increase in Net Profit and Revenue:

The Q4FY23 results demonstrated a significant upsurge in both net profit and revenue for Dr. Reddy's Lab. The net profit surged by a staggering 10-fold or 996%, rising to ₹959 crore from ₹87.5 crore in Q4FY22. The revenue witnessed a 16% increase, amounting to ₹6,296.8 crore compared to ₹5,436.8 crore in the corresponding period of the previous fiscal year.

Mixed Performance on a Quarter-on-Quarter Basis:

While the year-on-year growth was impressive, Dr. Reddy's Lab experienced a decline in performance on a quarter-on-quarter basis in Q4FY23. The net profit and revenue declined by 23% and 7%, respectively, compared to the previous quarter (Q3FY23).

Revenue Growth and Regional Breakdown:

The revenue growth in Q4FY23 was primarily driven by North America (27% YoY), Europe (12% YoY), and India (32% YoY) markets. However, revenues in Emerging Markets witnessed a decline of 7% YoY. On a sequential basis, the revenue dipped due to a fall in North America (-17% QoQ) and Emerging Markets (-15% QoQ), partially offset by growth in Europe (15% QoQ) and India (14% QoQ).

Financial Metrics and Expenses

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) stood at ₹1,631 crore, marking a 26% YoY increase but a 17% QoQ decrease. The EBITDA accounted for 25.9% of revenue. Gross margin contracted to 57.2% in Q4FY23, compared to 52.9% in Q4FY22 and 59.2% in Q3FY23. R&D expenses accounted for 8.5% of revenues, amounting to ₹537 crore, while SGNA expenses stood at ₹1,799 crore, representing 28.6% of revenue.

Full-Year Performance and Future Outlook:

For the full-year FY23, Dr. Reddy's Lab recorded impressive financial results. The net profit (PAT) stood at ₹4,507 crore, marking a substantial 91% YoY increase, while EBITDA reached ₹7,308 crore, representing a 42% increase compared to the previous fiscal year. The revenue for FY23 amounted to ₹24,588 crore, reflecting a 15% growth compared to FY22. Looking ahead, the company remains focused on its growth drivers, innovation, and collaboration to ensure a prosperous