{"id":145785,"date":"2023-05-11T08:38:39","date_gmt":"2023-05-11T12:38:39","guid":{"rendered":"https:\/\/44.250.171.167\/?p=145785"},"modified":"2023-05-11T08:38:40","modified_gmt":"2023-05-11T12:38:40","slug":"dr-reddys-laboratories-q4-fy23-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/dr-reddys-laboratories-q4-fy23-earnings-conference-call-insights\/","title":{"rendered":"Dr. Reddy&#8217;s Laboratories Q4 FY23 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from Dr. Reddy&#8217;s Laboratories (DRREDDY) Q4 FY23 Earnings Concall<\/strong><\/p>\n<p><strong>Q&amp;A Highlights:<\/strong><\/p>\n<ul>\n<li>[00:21:55] Mikhaila at Barclays asked more details about the deal with Junshi, including the responsibilities of both parties and what convinced DRREDDY about their asset and its potential. Erez Israeli CEO said the company seeks unmet needs in India and collaborates with China&#8217;s innovation industry to provide valuable products, prioritizing affordable health solutions.<\/li>\n<\/ul>\n<ul>\n<li>[00:23:23] Surya Patra of PhillipCapital enquired about the sequential growth in the U.S. excluding REVLIMID in the current quarter. Erez Israeli CEO said the company can&#8217;t provide guidance, but expects growth in all areas, including the U.S., driven by launching new products and contributions from recent acquisitions.<\/li>\n<\/ul>\n<ul>\n<li>[00:24:34] Surya Patra of PhillipCapital asked about the launch momentum in the US market. Erez Israeli CEO said that investment in R&amp;D on products with less competition is paying off. DRREDDY will see a pattern fleet in FY24 and after. The company plans to launch 25-30 meaningful products with less competition and continue to accumulate them.<\/li>\n<\/ul>\n<ul>\n<li>[00:30:01] Damayanti Kerai from HSBC asked about the price erosion in the existing products in the U.S. business and compare the price erosion in oral solids to injectables. Erez Israeli CEO replied that the U.S. market structure and player behavior remain unchanged, and the company&#8217;s product mix reduced price erosion. However, competition may still lead to erosion in both injectables and oral solids markets. Less competition could result in a more favorable situation.<\/li>\n<\/ul>\n<ul>\n<li>[00:31:39] Damayanti Kerai from HSBC asked that as DRREDDYs invest in new business and long-term growth drivers, how it\u2019s seeing R&amp;D and SG&amp;A costs and margin trajectory moving on a sustained basis. Erez Israeli CEO replied that the company aims to maintain a long-term goal of 25-25 and will allocate additional resources to technical issues. R&amp;D spending will likely be 8-9%, with a focus on biologics, partnering, genetic R&amp;D, and less competitive products.<\/li>\n<\/ul>\n<ul>\n<li>[00:33:22] Neha Manpuria from Bank of America enquired that will the ROW market return to its historical growth rate of 20-25%, excluding Russia. Erez Israeli CEO clarified that the company is aiming for its traditional growth.<\/li>\n<\/ul>\n<ul>\n<li>[00:33:45] Neha Manpuria from Bank of America asked how does the divestment income in the current quarter affect the growth of the India business and are there more divestments planned and can the company grow in line with the market in India. Erez Israeli CEO said the divestment in India was INR264 crores and the company is focusing on bringing more products and enhancing collaboration discussions and BD deals for organic and inorganic growth, with most inorganic growth coming from collaboration and M&amp;A acquisitions of other companies.<\/li>\n<\/ul>\n<ul>\n<li>[00:37:47] Ankush Mahajan from Axis Securities enquired about the sustainability run-rate for gRevlimid in the upcoming quarters and how does it affect the EBITDA margins for the U.S. business, excluding gRevlimid. Erez Israeli CEO answered that the product will continue to be meaningful for the company and may fluctuate from QtoQ but will be there for the entire agreement timeline. The company is focusing on products with less competition and the profitability and growth of the U.S. market will continue to be in the same range in the future.<\/li>\n<\/ul>\n<ul>\n<li>[00:39:33] Ankush Mahajan from Axis Securities asked about the sustainable EBITDA margins. Erez Israeli CEO replied that the company is going to sustain the 25-25 on a long term basis.<\/li>\n<\/ul>\n<ul>\n<li>[00:43:45] Kunal Dhamesha from Macquarie asked how does the company\u2019s accumulation of free cash flow and M&amp;A activity compare to its peers and how does it affect the ability to acquire good assets with a good IRR. Erez Israeli CEO said the company paid off debts and accumulated cash to prepare for potential interest rate and inflation increases. DRREDDY seeks digital opportunities with good valuations for licensing, portfolio expansion, and debt repayment. The company plans to make more deals in the future.<\/li>\n<\/ul>\n<ul>\n<li>[00:46:58] Cyndrella Carvalho from JM Financial asked about the Chinese product approvals starting to reflecting in earnings and the outlook for these products. Erez Israeli CEO replied that the company\u2019s efforts in submitting for GA status and early market entry for China-focused products have resulted in quick approvals and significant impact on results. The impact will start in FY24 and become more meaningful in &#8217;25 and &#8217;26. The company\u2019s strategy is working well and it has an outlet for the important Chinese market.<\/li>\n<\/ul>\n<ul>\n<li>[00:48:44] Cyndrella Carvalho from JM Financial asked how does the company\u2019s PSAI business compare to its peers in terms of top-line growth and GM and its outlook. Erez Israeli CEO said the company anticipates growth and improved profitability from new product launches and expansion into Asian markets, with a better product mix and improved supply chain and procurement. Positive momentum is expected for both growth and profitability.<\/li>\n<\/ul>\n<ul>\n<li>[00:50:58] Tushar Manudhane from Motilal Oswal asked if the company expects growth in North America sales in FY24, despite strength-related exclusivity and competition for generic Revlimid in FY23. Erez Israeli CEO said that the company believes it will grow due to the launch of 25 to 30 products and the combination of this mix should result in growth.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from Dr. Reddy&#8217;s Laboratories (DRREDDY) Q4 FY23 Earnings Concall Q&amp;A Highlights: [00:21:55] Mikhaila at Barclays asked more details about the deal with Junshi, including the responsibilities of both parties and what convinced DRREDDY about their asset and its potential. Erez Israeli CEO said the company seeks unmet needs in India and collaborates with [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":125416,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"Dr. Reddy's Laboratories Q4 FY23 Earnings Conference Call Insights #DRREDDY #Q4 #FY23 #Earnings #Stocks","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,5747],"tags":[10169,9138,1115],"class_list":["post-145785","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-healthcare-stocks","tag-earnings","tag-pharma","tag-pharmaceuticals"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":166617,"url":"https:\/\/alphastreet.com\/india\/drreddy-q3-2024-2025-call-highlights-record-ebitda-new-launches-biosimilar-milestones\/","url_meta":{"origin":145785,"position":0},"title":"DRREDDY Q3 2024-2025 Call Highlights: Record EBITDA, New Launches &#038; Biosimilar Milestones!","author":"Praveen","date":"January 30, 2025","format":false,"excerpt":"Dr Reddy's Laboratories Ltd., an integrated global pharmaceutical company, in its Q3 earnings call discussed a 16% growth in India despite weakness in cardiac and GI segments, while its European business grew 22%. The company discussed its biosimilar strategy, including Rituximab, denosumab, and abatacept, targeting December 2025 filing. A major\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":135275,"url":"https:\/\/alphastreet.com\/india\/dr-reddys-laboratories-limited-q2fy23-net-profit-increased-by-12\/","url_meta":{"origin":145785,"position":1},"title":"Dr. Reddy&#8217;s Laboratories Limited Q2FY23; Net Profit Increased By 12%","author":"Hardik Bhandare","date":"October 31, 2022","format":false,"excerpt":"Dr. Reddy's Laboratories Limited (NSE: DRREDDY) reported Revenue from Operations for Q2 FY23 of \u20b963,318 Crore up from \u20b957,896 Crore year on year, a growth of 9%. Global Generics Segment surged by 18% to \u20b956,009 Crore. Consolidated Net Profit of \u20b911,142 up 12% from \u20b99,958 Crore in the same quarter\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/10\/b8ce7e0b-90f6-4268-bbe3-939db5bfaaa8-scaled.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/10\/b8ce7e0b-90f6-4268-bbe3-939db5bfaaa8-scaled.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/10\/b8ce7e0b-90f6-4268-bbe3-939db5bfaaa8-scaled.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/10\/b8ce7e0b-90f6-4268-bbe3-939db5bfaaa8-scaled.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/10\/b8ce7e0b-90f6-4268-bbe3-939db5bfaaa8-scaled.jpg?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/10\/b8ce7e0b-90f6-4268-bbe3-939db5bfaaa8-scaled.jpg?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":171232,"url":"https:\/\/alphastreet.com\/india\/dr-reddy-q1-fy26-earnings-results\/","url_meta":{"origin":145785,"position":2},"title":"Dr Reddy Q1 FY26 Earnings Results","author":"Divyansh_Kasana","date":"September 15, 2025","format":false,"excerpt":"Company Overview: Dr. Reddy's Laboratories Ltd is a prominent Indian pharmaceutical company offering a broad range of products and services, including Active Pharmaceutical Ingredients (APIs), Custom Pharmaceutical Services (CPS), generics, biosimilars, and differentiated formulations. Financial Highlights for Q1 FY26: Revenue: \u20b98,572 crore, up 11.38% year-on-year from \u20b97,696 crore Total Expenses:\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"DRREDDY 1 FY26 Earnings Results","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/REDD.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/REDD.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/REDD.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/REDD.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/REDD.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/REDD.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":125277,"url":"https:\/\/alphastreet.com\/india\/key-highlights-from-dr-reddys-q2-2022-earnings-results\/","url_meta":{"origin":145785,"position":3},"title":"Key highlights from Dr Reddy\u2019s Q2 2022 earnings results","author":"Nishadkishore","date":"October 29, 2021","format":false,"excerpt":"Dr Reddy\u2019s Laboratories (NSE: DRREDDY) reported its second-quarter financial results for the period ended September 30, 2021. The company had total revenue of \u20b957.6 billion with a growth of 18% year on year. Dr Reddy's reported a net profit of \u20b99.92 billion or \u20b959.65 per share compared to \u20b97.62 billion\u2026","rel":"","context":"In &quot;Earnings&quot;","block_context":{"text":"Earnings","link":"https:\/\/alphastreet.com\/india\/category\/earnings\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/10\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/10\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/10\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":143632,"url":"https:\/\/alphastreet.com\/india\/dr-reddys-laboratories-one-of-the-major-player-in-generic-segment\/","url_meta":{"origin":145785,"position":4},"title":"Dr. Reddy&#8217;s Laboratories: One Of The Major Player In Generic Segment","author":"Hardik Bhandare","date":"April 11, 2023","format":false,"excerpt":"\u201cWe are progressing well on our pipeline products. The number of filings in several of our key markets have been improving. The ANDA and DMF filings are expected to significantly improve during Q4. We are evaluating several inorganic opportunities across businesses in line with our strategy. We believe, all of\u2026","rel":"","context":"In &quot;Research Summary&quot;","block_context":{"text":"Research Summary","link":"https:\/\/alphastreet.com\/india\/category\/research-summary\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/04\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-1-1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/04\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-1-1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/04\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-1-1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/04\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-1-1.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/04\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-1-1.jpg?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/04\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-1-1.jpg?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":145690,"url":"https:\/\/alphastreet.com\/india\/earnings-summary-of-dr-reddy-s-laboratories-limited-for-q4-fy23\/","url_meta":{"origin":145785,"position":5},"title":"Earnings Summary Of Dr Reddy &#8216;s Laboratories Limited For Q4 FY23","author":"Hardik Bhandare","date":"May 10, 2023","format":false,"excerpt":"Dr. Reddy's Laboratories Limited is an Indian multinational pharmaceutical company with a presence in over 25 countries. It was founded in 1984 and has its headquarters in Hyderabad, India. Dr. Reddy's is a research-driven company with a focus on developing and manufacturing high-quality pharmaceutical products. 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