Dr. Reddy’s Laboratories Ltd. announced its consolidated financial results for the quarter ended Sep 30, 2023.

Dr Reddy’s Laboratories registered its highest-ever consolidated net profit at Rs 1,480 crore in the Q2 FY 2023-24, reflecting 33 per cent growth YoY. The company reported a profit of Rs 1,112.80 crore in the year-ago period.

During the quarter, Dr Reddy’s Laboratories recorded revenue of Rs 6,880.20 crore, up 9 per cent from the Rs 6,305.70 crore in the year-ago quarter. The strong earnings in the quarter was aided by 13 per cent sales growth in the US and 26 per cent growth in Europe which offset the muted gains in the domestic market.

Moreover, the company EBITDA stood at Rs 2181 crore. The capital expenditure during the quarter was at Rs 320 crore and free cash-flow during the period was at Rs 1450 crore (before acquisition payout). Meanwhile, net cash surplus for the company stood at Rs 5910 crore as on September 30, 2023.

Commenting on the results, Co-Chairman & MD, G V Prasad said: “We delivered another quarter of strong results with highest ever sales and profits, driven by market share gains & momentum in our US generics business and robust growth in Europe. We are continuing to strengthen our pipeline both organically and through business development to drive growth and create differentiation.”

Dr. Reddy’s Laboratories said that the Ebitda was enabled by geographic diversification and productivity improvement in operations. Parag Agarwal, Chief Financial Officer (CFO), DRL said that they have also benefited from the softening of raw material prices.

The revenues were driven by generics in the US and Europe. Emerging markets grew by 5 per cent QoQ, but there was a 1 per cent year-on-year decline due to seasonality and unfavourable forex. Russia saw quarter-on-quarter growth of 3 per cent in revenues coming in at Rs 580 crore.