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Q3FY23 Preview: Dr. Reddy's Laboratories: Revenue seen at Rs62,016 million, PAT at Rs9,919 million

24 Jan 2023 , 12:33 PM

Dr. Reddy’s Laboratories could post healthy growth in US sales during the quarter, following continued momentum in niche products. Domestic business could post 6-7% revenue growth over the year-ago quarter, with gastro, respiratory and cardiac therapies taking the lead. Analysts at IIFL Securities expect revenue to grow 17% over the year-ago quarter and decline 2% sequentially. Exluding Revlimid, growth could be subdued.

Key margin pressures include price pressures in US, high input cost inflation and integration of low-margin Cidmus brand in India.

The company is likely to post 39% in Profit After Tax (PAT) over the year-ago quarter.

Important management insights to watch out for:

  • Outlook on the PSAI segment, amid COVID-related volatility seen globally
  • Growth drivers of the branded generics segment
  • Margin levers and outlook
 

December 2022 estimates

YoY change

QoQ change

Revenue (Rs mn)

62,016

17%

(2)%

EBITDA (Rs mn)

15,339

28%

(15)%

EBITDA margin 

24.7%

214 bps

(383) bps

Profit After Tax (Rs mn)

9,919

39%

(3)%

Source: IIFL Research

 

Related Tags

  • Dr Reddys Laboratories
  • Dr. Reddy’s Laboratories Q3
  • DRL
  • DRL Q3
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