Dr. Reddy’s Share Price Dips 4.17%; Q3 FY25 Revenue Rise 16% YoY

Dr. Reddy’s Laboratories Limited announced its consolidated financial results for the quarter and nine months ended December 31, 2024.

Post the announcement, on January 24, 2025, Dr. Reddy’s share price (NSE: DRREDDY) opened at ₹1,229.95, down from its previous close of ₹1,289.40. At 9:45 AM, the share price of Dr. Reddy’s was trading at ₹1,235.60, down by 4.17% on the NSE.

Q3 FY25 Financial Highlights

In Q3 FY25, the company reported revenues of ₹83,586 million, reflecting a year-on-year (YoY) growth of 16% and a sequential quarter-on-quarter (QoQ) increase of 4%. Gross margins for the quarter stood at 58.7%, slightly improving from 58.5% in Q3 FY24 but lower than 59.6% in Q2 FY25.

Selling, General & Administrative (SG&A) expenses reached ₹24,117 million in Q3 FY25, marking a 19% YoY growth and a 5% QoQ increase. Research and Development (R&D) expenses amounted to ₹6,658 million, representing 8.0% of total revenues.

EBITDA for Q3 FY25 stood at ₹22,982 million, accounting for 27.5% of revenues. Meanwhile, profit after tax (PAT) attributable to equity holders surged by 13% QoQ to ₹14,133 million and 2% YoY.

9M FY25 Financial Highlights

For the nine months ending December 31, 2024 (9M FY25), revenues totalled ₹2,40,475 million, a 15% YoY increase. Gross margins for the nine months were recorded at 59.5%, up from 58.6% in 9M FY24. SG&A expenses grew by 23% YoY to ₹69,815 million, while R&D expenses amounted to ₹20,122 million, or 8.4% of revenues.

EBITDA for the nine-month period stood at ₹67,384 million, representing 28.0% of revenues. PAT attributable to equity holders was ₹40,606 million, experiencing a slight decline of 5% YoY.

Commenting on the performance, the Co-Chairman & MD, G V Prasad, said, “We delivered double-digit growth aided by our newly acquired NRT business, new launches and improved operational efficiencies. We remain committed to addressing patient needs by advancing healthcare through access, affordability and innovation.”

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