Amid tensions between the United States and China, Dr Reddy's Laboratories CEO expressed optimism about the Donald Trump administration. Erez Israeli stated that the company's products are positioned favorably in the US market as they are cheaper than current alternatives. He believes this aligns with the goals of the US administration.
Revenue from North America, Dr Reddy's biggest geography, saw a 1% rise to 33.80 billion rupees in the recent quarter. This growth was primarily driven by volume increases due to new product launches, despite facing challenges like lower prices.
Dr Reddy's Laboratories reported a 2% increase in consolidated net profit to Rs 1,413 crore for the third quarter ending December 31, 2024. The company recorded robust performance across various markets, with revenue reaching Rs 8,359 crore compared to Rs 7,215 crore in the same period last year.
In the US market, the company's revenue grew by 1% year-on-year to Rs 3,383 crore in the third quarter. Sales in India also saw significant growth, rising to Rs 1,346 crore from Rs 1,180 crore in the previous year.
Furthermore, sales in Europe surged to Rs 1,210 crore from Rs 497 crore in the December quarter of the previous fiscal year, marking substantial growth. Sales in emerging markets also increased by 12% to Rs 1,436 crore year-on-year.
Despite the positive financial performance, Dr Reddy's shares closed 0.54% lower at Rs 1,289.35 apiece on the Bombay Stock Exchange (BSE) on Thursday.
Global Generics revenue by geography:
- India: Q3FY25 revenues at Rs 1,350 crore, YoY growth of 14% and QoQ decline of 4%.
- Emerging markets: Q3FY25 revenues at Rs 1,440 crore, recording a YoY growth of 12% and flat QoQ.
- North America: Q3FY25 revenues at Rs 3,380 crore, with a YoY growth of 1% and QoQ decline of 9%.
- Europe: Q3FY25 revenues at Rs 1210 crore, YoY growth of 143% and QoQ growth of 110%.
