Dr Reddy's Q3 Preview: Double-digit revenue growth, PAT likely to rise 10% YoY

Dr Reddy’s Laboratories is projected to study a robust show successful Q3FY25, with nett net expected to emergence by 10 per cent year-on-year (YoY), according to Zee Business estimates. The company's gross is anticipated to turn by 13 per cent YoY, bolstered by unchangeable US income and beardown home demand.

Revenue and nett outlook

For the quarter, Dr Reddy’s gross is apt to interaction Rs 7,903 crore, up from Rs 7,237 crore successful Q3FY24, marking a maturation of 9.2 per cent YoY. However, nett net (PAT) whitethorn marginally dip to Rs 1,354 crore, a diminution of 1.9 per cent YoY, impacted by higher R&D spending and accrued operational overheads owed to inorganic acquisitions. EBITDA is forecasted astatine Rs 2,160 crore, up 6.8 per cent YoY, with margins expected to compress somewhat to 27.3 per cent compared to 28 per cent past year.

US income stableness and home growth

US sales, a captious maturation driver, are projected to stay unchangeable YoY astatine $405-$427 million, supported by dependable gRevlimid performance. Analysts item muted maturation successful the Lenalidomide conception but expect a boost from caller approvals wrong the adjacent 12-18 months and the motorboat of Denosumab successful Europe.

In the home market, gross is estimated to emergence 12.5 per cent YoY to Rs 1,400 crore, aided by in-licensing deals with Sanofi and Bayer, alongside maturation successful the gastroenterology and dermatology segments.

Margins and challenges

The depreciation of the rupee is expected to supply immoderate cushion to margins. However, accrued R&D investments and higher operational costs person led to borderline compression. A autumn successful different income is besides apt to measurement connected wide profitability.

Key factors to monitor

Investors volition intimately ticker updates connected niche opportunities, including GLP-1 launches successful India and emerging markets, advancement successful China and Brazil, and the interaction of caller licensing deals. Additionally, trends successful the US basal concern and commentary connected borderline sustainability volition beryllium critical.

Dr Reddy's continues to support its maturation trajectory, supported by strategical initiatives and a beardown merchandise pipeline, adjacent arsenic it navigates challenges successful operational costs and marketplace dynamics.