Q3FY23 Quarterly Result Announced for Dr. Reddy's Laboratories Ltd.
Pharmaceuticals firm Dr. Reddy's Laboratories announced Q3FY23 results: Q3FY23 Highlights: Gross profit margin at 59.2% Increased by ~545 bps over previous year driven mainly due to new product launches with higher margins, favorable products mix and favorable forex movement which was partly offset by price erosion. Margins have marginally increased by 15 bps sequentially. Gross profit margin for GG and PSAI business segments are at 64.6% and 18.2% respectively. SG&A; expenses at Rs 18 billion, increased by 17% YoY. This increase was primarily attributable to investments in sales & marketing, annual increments, certain one-off expenses and higher forex rate. Sequentially the SG&A; expenses increased by 9% mainly due to increase in sales & marketing spends and other one-off expenses. R&D; expenses at Rs 4.8 billion. As % to revenues - Q3FY23: 7.1% ; Q2FY23: 7.7% ; Q3FY22: 7.8%. We continue our focus on investing in R&D; to build a healthy pipeline of new products across our markets including the development of products in our biosimilars and generics businesses. Impairment charge of Rs 134 million as compared to Rs 47 million charge in Q3FY22. Other operating expenses at Rs 732 million compared to income of Rs 240 million in Q3FY22. Net other expenses during the quarter included the loss on the sale of asset at Leiden, Netherlands. Net finance expense at Rs 139 million in Q3FY23 compared to income of Rs 289 million in Q3FY22. Profit before tax at Rs 16.3 billion, which is 24.1% of revenues. The profit before tax increased by 68% YoY and by 1% sequentially. Profit after tax at Rs 12.5 billion. The effective tax rate is ~23.7% for the quarter. Diluted earnings per share is at Rs 74.95 EBITDA at Rs 19.7 billion and the EBITDA margin is 29.0%. Capital expenditure is at Rs 2.9 billion. Free cash flow is at Rs 19.8 billion. Net cash surplus for the company is at Rs 34 billion as on December 31, 2022. Consequently, the net debt-to-equity ratio is (0.15). RoCE for the company is 35.8% (annualized). Result PDF25-01-2023
