Share the post "Dr Reddy’s Laboratories : Q1 2024 Financial Quarterly Report : YoY Sales Up 7.43 %, QoQ Up 14.43 %"
Highlights
- The presented financial data is Standalone to provide a comprehensive overview of the company performance.
- Sales over the Year and quarter: The company experienced a substantial growth of 7.43 % in the past year, substantial increase in net sales/revenue by 14.43 %.
- Income over the Year and quarter: There has been decline in other income over the past year which is -6.76 %, Marginal increase in other income during this quarter, up by 2.4%.
- Profit over the Year and quarter: Challenges in sustaining profitability for Dr. Reddy’s Laboratories Limited. Profit dropped by -13.55 % Year to Year, Dr. Reddy’s Laboratories Limited’s profitability increased by 36.95 % in this quarter.
- EPS over the Year and quarter: EPS declined by -13.74 % Year to Year. EPS increased by 36.95 % in previous quarter. Positive impact on shareholders.
Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
---|---|---|---|---|---|
Sales | Rs. 5437.3 Cr | Rs. 5104.8 Cr | Rs. 5841.2 Cr | + 14.43 % | + 7.43 % |
Expenses | Rs. 3209.6 Cr | Rs. 3726.2 Cr | Rs. 3888.2 Cr | + 4.35 % | + 21.14 % |
Operating Profit | Rs. 2227.7 Cr | Rs. 1378.6 Cr | Rs. 1953 Cr | + 41.67 % | -12.33 % |
OPM % | 40.97 % | 27.01 % | 33.43 % | + 6.42 % | -7.54 % |
Other Income | Rs. 233.6 Cr | Rs. 212.7 Cr | Rs. 217.8 Cr | + 2.4 % | -6.76 % |
Interest | Rs. 4.5 Cr | Rs. 5.9 Cr | Rs. 7.1 Cr | + 20.34 % | + 57.78 % |
Depreciation | Rs. 237.2 Cr | Rs. 246.2 Cr | Rs. 249.8 Cr | + 1.46 % | + 5.31 % |
Profit before tax | Rs. 2219.6 Cr | Rs. 1339.2 Cr | Rs. 1913.9 Cr | + 42.91 % | -13.77 % |
Tax % | 26.14 % | 22.73 % | 25.95 % | + 3.22 % | -0.19 % |
Net Profit | Rs. 1639.4 Cr | Rs. 1034.8 Cr | Rs. 1417.2 Cr | + 36.95 % | -13.55 % |
EPS in Rs | Rs. 98.45 | Rs. 62.04 | Rs. 84.97 | + 36.96 % | -13.69 % |
Today, we’re looking at Dr. Reddy’s Laboratories Limited’s financial performance for the Q1(Jun 2024).Starting with the top line, the company reported a robust year-over-year sales growth of 7.43 %. However, it did see a marginal increase of 14.43 % from the previous quarter. Expenses ticked up slightly by 4.35 % quarter-on-quarter, aligning with the annual rise of 21.14 %. Operating profit, while down -12.33 % compared to last year, faced a quarter-on-quarter increase of 41.67 %, signaling a short-term expansion in margins.
The Operating Profit Margin (OPM) % contradicts this narrative, showing weakness on an annual basis with a decrease of -7.54 %, but an expansion of 6.42 % sequentially. Other income rose by 2.4 % compared to the last quarter, despite an annual decline of -6.76 %. Interest expenses surged remarkably by 20.34 % from the previous quarter, yet the year-over-year increase remains at a moderate 57.78 %. Depreciation costs climbed by 1.46 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 5.31 %. Profit before tax declined annually by -13.77 % but saw an increase from the preceding quarter by 42.91 %.
Tax expenses as a percentage of profits decreased slightly by -0.19 % compared to last year, with a more notable quarter-on-quarter increase of 3.22 %. Net profit fell by -13.55 % year-on-year but experienced a 36.95 % expansion from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -13.69 % but a quarterly rise of 36.96 %. In summary, Dr. Reddy’s Laboratories Limited’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.
Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
---|---|---|---|---|---|
Sales | Rs. 5437.3 Cr | Rs. 5104.8 Cr | Rs. 5841.2 Cr | + 14.43 % | + 7.43 % |
Expenses | Rs. 3209.6 Cr | Rs. 3726.2 Cr | Rs. 3888.2 Cr | + 4.35 % | + 21.14 % |
Operating Profit | Rs. 2227.7 Cr | Rs. 1378.6 Cr | Rs. 1953 Cr | + 41.67 % | -12.33 % |
Net Profit | Rs. 1639.4 Cr | Rs. 1034.8 Cr | Rs. 1417.2 Cr | + 36.95 % | -13.55 % |
EPS in Rs | Rs. 98.45 | Rs. 62.04 | Rs. 84.97 | + 36.96 % | -13.69 % |
In reviewing Dr. Reddy’s Laboratories Limited’s 2024(Q1) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales saw a robust 7.43 % year-on-year growth, however, there was a minor increase of 14.43 % from the previous quarter. Expenses rose by 21.14 % compared to the previous year, with a 4.35 % increase quarter-on-quarter. Operating Profit dropped by -12.33 % annually, and saw a 41.67 % increase from the last quarter.
Net Profit showed yearly decrease of -13.55 %, and experienced a 36.95 % increase from the previous quarter. Earnings Per Share (EPS) fell by -13.69 % annually, however rose by 36.96 % compared to the last quarter. In essence, while Dr. Reddy’s Laboratories Limited faces strong annual decline indicators, short-term improvements suggest the potential for recovery and the importance of strategic adjustments to counter market challenges effectively. That’s all for now in the financial sector.