Dr Reddy’s Labs Share Price Top Nifty50 Loser, Down 3% After Q4 Results

Dr Reddy’s Laboratories share price was the top Nifty50 loser in the morning session on May 8, sliding over 3 percent. This comes a day after the pharma company declared its Q4 earnings.

Dr Reddy’s Laboratories exceeded expectations with a net profit of Rs 1,307 crore in the March quarter of FY24, marking a substantial 36 percent increase compared to the same period last year. The performance surpasses the Rs 960 crore profit reported in the corresponding quarter of the previous fiscal year.

Revenue for the quarter reached Rs 7,083 crore, indicating a 12 percent rise from Rs 6,297 crore recorded in the year-ago quarter. The company’s board announced a final dividend of Rs 40 per equity share of Rs 5 each for the financial year 2023-24.

Furthermore, Parag Agarwal is set to retire as the Chief Financial Officer of the Company, effective from the close of working hours on July 31, 2024. M V Narasimham, currently serving as Deputy Chief Financial Officer, will assume the role of Chief Financial Officer starting August 1, 2024, the company said.

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Operating level performance also saw growth, with EBITDA rising by 14 percent to Rs 1,872 crore compared to Rs 1,631.2 crore in the previous fiscal year. The EBITDA margin stood at 26.4 percent, up from 25.9 percent.

Q4 FY24 US revenues reached USD 3 2.6 billion, marking a year-on-year growth of 29 percent but a quarter-on-quarter decline of 3 percent. The yearly growth was primarily driven by increased volumes in Dr. Reddy’s core business, contributions from new launches, albeit partly offset by price erosion. The sequential decline was attributed to reduced volumes in the core business and price erosion in select brands.

Q4 FY24 India revenues were recorded at Rs 11.3 billion, reflecting a year-on-year decline of 12 percent and a quarter-on-quarter decline of 5 percent. Adjusted for brand divestment income, on a re-based comparator, there was a year-on-year growth of 11 percent. The quarter-on-quarter decline was due to lower volumes from the core business.

At 10:46 AM, the Dr Reddy’s Labs share price was trading at Rs 6055, down Rs 200.85 or 3.21 percent.

Source: NSE

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