Dr. Reddy's Q4 Results Preview: Biosimilars To Drive Revenue Growth
Dr. Reddy's revenue is estimated to rise 15% year-on-year to Rs 8,359.7 crore.
Dr. Reddy’s Laboratories Ltd. is set to report its fourth-quarter earnings on May 9. The pharma major is expected to see net profit and revenue growth during the January-March period.
Revenue is estimated to rise 15% year-on-year to Rs 8,359.7 crore, according to consensus of analysts tracked by Bloomberg. While net profit is estimated to grow 11.37% to Rs 1,459 crore.
Ebitda is expected to jump 23.8% to Rs 2,268.6 crore, while margin is anticipated at 27.10%.
The company's revenue growth is primarily expected to be driven by the biosimilar pipeline and key launches in the Indian market. The domestic formulations business is also forecasted to be a significant contributor, with a projected 21% YoY growth, fueled by the integration of the Sanofi portfolio.
Dr. Reddy's Laboratories Q4 FY25 Preview (Consolidated YoY)
Revenue may rise 15.5% at Rs 8,359.7 crore.
Ebitda may rise 23.8% at Rs 2,268.6 crore.
Ebitda margin expected at 27.10%.
Net profit may rise 11.37% at Rs 1,459 crore.
While US sales are expected to grow, HDFC Securities predicts a more modest 3% YoY increase, driven by generic Revlimid sales, which will be partially offset by price and market share erosion in the base business, due to increased competition. The brokerage also noted a 4% quarter-on-quarter growth in the US business due to generic Revlimid sales.
Nuvama highlighted the vaccines business as a key driver of growth in India, and also sees potential benefits from New Respiratory Therapy products in the EU.
Both brokerages expect gross and Ebitda margins to remain steady.
What To Watch Out For
Investors will be keenly watching for updates on potential US launches over the next 12-18 months, as well as the performance of licenses and partnerships formed in recent years. These factors will be crucial in determining the company's growth trajectory in the near future.
Brokerage Views
HDFC Securities
US business to see 4% QoQ growth due to gRevlimid sales.
Growth will be partly offset by price and market share erosion in the base business, due to incremental competition in key products.
India to see 15% YoY growth on incremental sales from acquired vaccine business from Sanofi.
NRT business has been factored in.
Gross margin and Ebitda margin are expected to remain steady.
Nuvama
Vaccines business a key driver of growth in India.
Sees potential benefits from New Respiratory Therapy products in the EU.
