Ranvir’s Portfolio

Dr Reddy –
Q4 and FY 24 results and concall highlights –

Q4 outcomes –

Revenues – 7083 vs 6315 cr
Gross margins @ 58.5 vs 57.2 pc
EBITDA – 1872 vs 1534 cr ( margins @ 26 vs 24 pc YoY )
R&D expenses @ 687 cr ( @ 9.7 pc of sales – very healthy run rate )
PAT – 1307 vs 960 cr

Segment wise sales breakup –

North America – 3262 vs 2532 cr, up 29 pc

Europe – 520 vs 496 cr, up 5 pc

India – 1126 vs 1283 cr, down 12 pc ( due to divestment of certain brands in Q4 LY, adjusted for that – India business growth was a strong 17 pc )

Emerging Mkts – 1209 vs 1114 cr, up 9 pc

APIs + Pharmaceutical services – 821 vs 778 cr , up 6 pc

Entered into an agreement with Sanofi to market and distribute vaccine brands in India

Partnered with Bayer to distribute their heart – failure management brand in India – Vericiguat

Acquired – Menolabs. It has a well developed Women’s health and dietary supplements product portfolio in US ( has a portfolio of 7 branded products )

Entered consumer heath mkt in UK with the launch of allergy medicine – Histallay

Launched Bevacizumab – Dr Reddy’s first bio similar in UK

Launched – Nerivio – wearable migraine management device in Germany, SA

Strong growth in US business in FY 24 led by – increased volumes in base business, integration of Mayne Portfolio ( an Australian generics company, was acquired by Dr Reddy’s in the last FY ), new launches – partially offset by price erosions

Launched a total of 13 branded products in India in FY 24

Higher R&D spends for Q4 and FY 24 directed towards company’s development efforts to develop – small molecules of greater complexity and Biosimilars

Surplus cash on books @ 6500 cr

Formed a JV with Nestle India to roll out nutraceutical products like – health supplements for women and kids, metabolic wellness, hospital wellness etc in India and certain other agreed markets

Dr Reddy’s rank is IPM is at no 10

Among EMs, Russian sales grew strongly at 17 pc YoY growth in FY 24

Expect R&D investments to be aggressive in FY 25 as well. Broad breakup of these spends towards chemical molecules, bio molecules, APIs is 60:20:20. The clinical trials of Biosimilars does consume significant R&D dollars

Expecting Brazil, China business to clock double digit growth in FY 25

Company’s capex is mainly focussed towards building additional API and Injectable facilities

Timeline for the launch of Company’s first Biosimilar in US remains at FY 27

60 pc of branded generics sold by the company in India are made in-house. This percentage should go up in future

Increase in inventory levels in Q4 is a deliberate step by the company to insulate themselves from geo-political tensions / supply disruptions

Confident of continuing the double digit growth in India branded mkt. This is a key focus area for the company. Company aims to be in top 5 companies in the domestic mkt by 2030

Disc: holding, biased, not SEBI registered