Headquartered in Hyderabad, Dr Reddys Labs announced a roughly eleven-fold increase in fourth-quarter earnings on Wednesday, owing to more robust sales from its major generic pharmaceuticals business in North America.

It showed a consolidated profit of 9.59 billion rupees for Q4 ending March 31, a significant surge from 875 million rupees in the previous year. According to Refinitiv IBES statistics, the result fell short of analysts forecasts of 9.74 billion rupees.

Dr. Reddys dominant market in North America, which contributes more than half of its total sales, saw a revenue increase of 27% to 25.32 billion rupees in Q4, thanks to the launch of new products and expansion of existing ones. Meanwhile, in India, its generic pharmaceuticals revenue grew by 32%.

For the quarter, Dr. Reddys reported a consolidated revenue increase of 15.8% to 62.97 billion rupees, while its total operating expenditures decreased by 13.3%. A proposed final dividend of 40 rupees per share for the fiscal year 2023 was also announced by the firm.

Despite the positive results, Dr. Reddys shares closed 1.3% lower at 4,867 rupees on Wednesday, prior to the announcement of the earnings. Nevertheless, the shares have risen 14.9% this year, outperforming the Nifty pharma index, which has only gained 0.9%.

Lupin Ltd returned to profitability in Q4 after a loss in the previous year, while Alembic Pharmaceuticals Ltd reported a significant increase of almost seven times in quarterly earnings. The earnings report for Cipla Ltd is yet to be disclosed, expectedly later this week.

(Source: https://health.economictimes.indiatimes.com/news/pharma/financial-performance/indias-dr-reddys-labs-posts-11-fold-jump-in-q4-profit/100149853)