RDY Earnings Prediction
The chart below shows how RDY performed 10 days before and after its earnings report, based on data from the past quarters. Typically, RDY sees a +0.78% change in stock price 10 days leading up to the earnings, and a +1.71% change 10 days following the report. On the earnings day itself, the stock moves by -1.31%. This data can give you a slight idea of what to expect for the next quarter's release.
RDY Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
957.19M
14.99%
4.04%
Gross Margin
59.59%
1.57%
-1.34%
Operating Margin
22.37%
-11.34%
-3.58%
Net Margin
16.73%
-22.22%
-7.77%
EPS
0.18
-14.29%
-10.00%
No Data Available
RDY Earnings Analysis
Dr. Reddy's Laboratories Limited American Depositary Shares Corporation (RDY.N) Earnings Conference Call
Positive
Revenue Growth Surge: 1. Strong Revenue Growth: Dr. Reddy's reported consolidated revenues of INR 8,016 crores (US$957 million), reflecting a 17% year-over-year growth and a 4% sequential increase.
EBITDA Margin Improvement: 2. Healthy EBITDA Margin: The EBITDA for the quarter was INR 2,280 crores (US$272 million), marking a 5% increase year-over-year, with an underlying EBITDA margin of 29.1% after adjusting for one-time acquisition-related costs.
R&D Investment Surge: 3. Significant R&D Investment: The company invested INR 727 crores (US$87 million) in R&D, which is 9.1% of sales, representing a 33% year-over-year increase, aimed at developing a robust pipeline of small molecules and biosimilars.
Net Cash Surplus Reported: 4. Net Cash Surplus: Following the acquisition-related upfront payout, Dr. Reddy's reported a net cash surplus of INR 1,889 crores (US$226 million) as of September 30, 2024.
Emerging Markets Growth: 5. Strong Performance in Emerging Markets: The emerging markets generics business recorded revenues of INR 1,455 crores, achieving a robust year-over-year growth of 20% and a sequential growth of 23%.
Negative
Rising SG&A Expenses: 1. Increased SG&A Expenses: SG&A expenses rose by 20% year-over-year to INR 2,301 crores, driven by investments in new business initiatives and higher freight costs, indicating a significant increase in operational costs.
EBITDA Margin Decline: 2. Declining EBITDA Margin: The EBITDA margin decreased by 326 basis points year-over-year to 28.4%, reflecting pressure on profitability despite a 5% increase in EBITDA.
Intangible Asset Impairment: 3. Impairment Loss on Intangibles: An impairment loss of INR 92 crores was recorded on intangibles related to a product facing procurement constraints, indicating challenges in product supply and potential revenue loss.
Decline in Other Income: 4. Lower Other Operating Income: Other operating income fell to INR 98 crores from INR 180 crores in the previous year, primarily due to a one-time product-related settlement income that was not repeated this quarter.
R&D Expense Surge: 5. Increased R&D Spending: R&D expenses surged by 33% year-over-year to INR 727 crores, representing 9.1% of sales, which may indicate a strain on resources without immediate revenue returns.
RDY FAQs
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RDY Earning Call Sentiment
Dr. Reddy's Laboratories Limited (RDY) Q2 2025 Earnings Call Transcript
1.0x
00:00
00:00
RDY.N
-0.69%Positive
The earnings call presents a generally positive outlook with strong profit margins and increased R&D investment. The Q&A section highlights stable pricing in North America, potential growth acceleration, and high-value launches expected soon. Despite some unclear responses, the overall sentiment is optimistic with a focus on future growth, particularly in biosimilars and the US market. This aligns with a positive short-term stock price prediction.
