Dr Reddy's Laboratories Ltd (RDY) Full Year 2025 Earnings Call Highlights: Record Revenue and ...

GuruFocus News

Mon, May 12, 2025, 2:00 PM 3 min read

Release Date: May 09, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• Dr Reddy's Laboratories Ltd (NYSE:RDY) achieved grounds precocious gross exceeding $3.8 cardinal and crossed the $1 cardinal threshold successful EBITDA for the archetypal time.

• The institution reported a year-over-year gross maturation of 17% for the afloat year, driven by strategical acquisitions and contributions from its generic portfolio.

• EBITDA margins remained resilient, exceeding 29% for the 4th and closing the afloat twelvemonth astatine implicit 28%.

• The institution successfully integrated its recently acquired nicotine replacement therapy concern successful the UK and is connected way to implicit integration successful the Nordics.

• Dr Reddy's Laboratories Ltd (NYSE:RDY) maintained a nett currency surplus equilibrium of 2,454 crores post-acquisition payouts, enhancing fiscal flexibility for aboriginal maturation initiatives.

• The consolidated gross nett borderline for the 4th fourth declined by 300 ground points year-over-year, chiefly owed to reduced manufacturing overhead leverage.

• Selling and wide administrative expenses accrued by 22% year-over-year, driven by the acquired user healthcare concern and higher logistics costs.

• The effectual taxation complaint for the afloat twelvemonth was higher than the erstwhile year, chiefly owed to the reversal of antecedently recognized deferred taxation assets.

• The institution faced impairment losses of 77 crores successful Q4 and 169 crores for the afloat year, related to definite product-related intangibles owed to adverse marketplace conditions.

• There was a sequential diminution of 30% successful the emerging markets generic concern gross for Q4, contempt a year-over-year maturation of 16%.

• Warning! GuruFocus has detected 5 Warning Signs with GSBD.

Q: What is Dr. Reddy's strategy regarding imaginable tariffs connected generics, and however volition it impact the company's operations fixed it doesn't person manufacturing successful the US? A: (Unidentified_4) We are preparing for assorted scenarios and intimately monitoring developments. Our main absorption is ensuring proviso sustainability by moving with customers connected inventory needs. We are not readying circumstantial actions to physique a US manufacturing footprint unless the close accidental arises. The interaction of tariffs volition beryllium connected whether they use to APIs oregon finished products, and we volition set our strategy accordingly.

Q: How flexible is Dr. Reddy's outgo base, peculiarly successful R&D and SG&A, to support margins arsenic gross grows? A: (Unidentified_3) We expect to support R&D and SG&A expenses astatine akin levels, with R&D astatine astir 8% of sales. Our strategy is to turn income faster than expenses, utilizing productivity measures alternatively than outgo cuts. We purpose to execute double-digit maturation portion maintaining margins.