Dr Reddy’s Laboratories Q1 Results: Net profit drops 0.8% to ₹1,392 crore, revenue rises 14% YoY; stock split declared

Dr Reddy's Laboratories Q1 Results: Dr Reddy's Laboratories announced its April-June quarter results for fiscal 2024-25 (Q1FY25) on Saturday, July 27, reporting a drop of 0.8 per cent in net profit to ₹1.392 crore, compared to ₹1,335 crore in the corresponding period last year. 

The company's board announced a 1:5 stock split of shares, for which the record date has not yet been set. The Hyderabad-based pharma major's revenue from operations in the first quarter of current fiscal rose 14 per cent to ₹7,672.7 crore, compared to ₹6,738.4 crore in the year-ago period. 

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Dr Reddy's Laboratories Q1 Results - Key Metrics

On the operating front, Dr Reddy's earnings before interest, taxes, depreciation, and amortization (EBITDA) during the June quarter rose 1.1 per cent to ₹2,160 crore, compared to ₹2,137.2 crore in the same period last year. The margin dropped 80 basis points (bps) to 28.2 per cent from 29 per cent a year-ago.

"We had a good start to the new fiscal year, and our generics business mainly drove our growth and profitability," said Dr Reddy's Co-Chairman and MD, G V Prasad. The company continues to strengthen its core businesses and has made strategic investments in biologics, consumer healthcare, and innovation to drive patient impact and value creation,'' he added.

Revenues from North America grew 20 per cent to ₹3,850 crore, largely due to increased base business volumes and a contribution from new launches, partly offset by price erosion. India's generics business revenue stood at ₹1,325 crore for the first quarter, compared to ₹1,148 crore in the June quarter of last fiscal year.

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Europe revenues were ₹530 crore, recording a four-percent YoY growth, while Indian income stood at ₹1,330 crore, registering a 15-percent growth during the quarter. Emerging markets reported ₹1,190 crore, with three-percent growth. Revenues from Pharmaceutical Services and Active Ingredients stood at ₹770 crore (14-per cent YoY growth) during the first quarter.

The company said its board approved the sub-division of each share with a face value of ₹5 each into five shares with a face value of Re 1 each. The board also approved an investment in preference shares to infuse up to GBP 500 million into its Switzerland-based unit, Dr Reddy's Laboratories SA. The subsidiary will use the fund to acquire Nicotinell and related brands by acquiring all of Northstar Switzerland SARL's quotas, which the Haleon Group owns.

Also Read: Dr Reddy’s Laboratories Q3 Results: Net profit rises 10.6% to ₹1,379 crore; 5 key highlights

Dr Reddy's board announces stock split of shares

Dr. Reddy’s Laboratories also declared that the company will split its stock in the ratio of 1:5, which means that for each stock with a face value of ₹5, there will now be 5 shares with a face value of Re 1. 

“Sub-division/ split of each equity share of the Company having face value of Rs.5/- (Rupees five only) each, fully paid-up, into 5 (Five) equity shares having face value of Re.1/- (Rupee one only) each, fully paid-up, by alteration of the Capital Clause of the Memorandum of Association of the Company,” said Dr Reddy's Laboratories in a regulatory filing to the stock exchanges.

The record date for the stock split has not yet been announced. Dr Reddy's also announced that each American Depositary Share (ADS) will still represent one equity share. The number of ADSs held by each American Depositary Receipt holder will increase proportionately to the increase in equity shares. On Friday, shares of Dr Reddy's Laoratories settled 0.55 per cent higher at ₹6,892.15 apiece on the BSE.