- Dr Reddy’s 4Q net income was 13.1 billion rupees, a 37% increase year on year (y/y), beating the estimated 11.41 billion rupees.
- The revenue stood at 71.1 billion rupees, showing a 13% increase y/y and surpassing the estimated 70.27 billion rupees.
- The revenue from generics was 61.3 billion rupees, up by 13% y/y, although slightly lower than the estimated 62.76 billion rupees.
- North America revenue witnessed significant growth of 29% y/y, reaching 32.6 billion rupees.
- Sales in India, however, saw a decrease by 12% y/y, standing at 11.3 billion rupees.
- Sales in Europe showed a modest increase of 5% y/y, standing at 5.21 billion rupees.
- Rev. from emerging markets was 12.1 billion rupees, a 8.6% increase y/y, almost in line with the estimated 12.15 billion rupees.
- Total costs increased by 11% y/y, reaching 57.1 billion rupees.
- Other income for the company considerably increased by 42% y/y, reaching 1.98 billion rupees.
- R&D expenses were 6.88 billion rupees, significantly higher than the estimated 5.55 billion rupees.
- The earnings before interest, taxes, depreciation, and amortization (EBITDA) was 18.7 billion rupees, slightly higher than the estimated 18.1 billion rupees.
- A dividend per share of 40 rupees was declared.
- CFO Parag Agarwal is set to retire on July 31.
- M V Narasimham is appointed as CFO, effective from August 1.
- Analyst ratings consist of 16 buys, 11 holds, and 14 sells.
Dr. Reddy’s Laboratories on Smartkarma
On Smartkarma, analyst Tina Banerjee recently covered Dr. Reddy’s Laboratories (DRRD IN), highlighting the company’s impressive performance in Q3FY24. Driven by strong sales in the U.S. and Europe, the pharmaceutical giant achieved record revenue of INR72B. The growth was fueled by both existing products and new launches, showcasing the company’s robust presence in key markets.
Furthermore, Dr. Reddy’s recent acquisition of MenoLabs signifies its strategic focus on expanding its over-the-counter (OTC) portfolio, particularly targeting women’s health solutions. Despite underperformance in the domestic market, the company’s efforts in developing innovative generic drugs for India demonstrate a long-term growth trajectory. Analyst sentiment leans bullish on Dr. Reddy’s Laboratories, positioning it for sustained success in the pharmaceutical landscape.
A look at Dr. Reddy’s Laboratories Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 4.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Dr. Reddy’s Laboratories, a pharmaceutical company that offers a wide range of services, has been given positive Smart Scores across various factors. With a solid score in Resilience, the company is well-positioned to withstand challenges and maintain stability in the long term. Additionally, its high scores in Dividend and Growth indicate potential for strong returns and expansion opportunities in the future. This suggests a positive outlook for investors looking for steady growth and reliable dividends.
Furthermore, Dr. Reddy’s Laboratories‘ Momentum score signifies that the company is maintaining a good pace in the market, highlighting its ability to sustain and potentially improve its performance. Although the Value score is not as high as other factors, the overall outlook appears promising for the company based on the Smartkarma Smart Scores. In summary, Dr. Reddy’s Laboratories is a pharmaceutical firm with a global presence, offering a diverse range of products, and is well-positioned for long-term resilience, growth, and momentum in the market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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