Dr Reddy’s Laboratories Financial Results Quarter, Financial year ended 31 March 2025
Dr. Reddy’s Laboratories is an Indian medicine company established in 1984 by Dr. Kallam Anji Reddy. It sells its products in over 70 countries. The company makes many types of medicines, including generic drugs, ingredients used to make other medicines (APIS), and biosimilars.
It makes medicines for problems like cancer, heart disease, stomach issues, and skin problems. Dr. Reddy’s joined with Nestle India to make health supplements and started selling Regadenoson, a medicine in the U.S.The company is doing well, but some people have raised concerns. It continued doing business in Russia during the war in Ukraine.
Revenue and Profit Analysis for the Quarter Ended 31 March 2025
Total Income
The total income for the quarter was ₹85,060 million, which is higher than ₹70,830 million in the same quarter last year.
Main sources of income:
- Sales and services: ₹85,060 million
- Other income: ₹-2,465 million (a small loss)
Expenses
Total expenses for the quarter were ₹66,413 million, compared to ₹55,847 million in the same quarter last year.
The increase in expenses came mainly from:
- Cost of goods sold: ₹37,797 million (up by ₹8,450 million)
- Selling, general, and administrative expenses: ₹24,055 million
- Research and development costs: ₹7,258 million
- Impairment of assets: ₹768 million (losses on assets)
Profit Before Tax
The profit before tax for the quarter was ₹20,054 million, up from ₹16,016 million in the same quarter last year. This increase in profit was mainly because of higher sales and income from investments, which helped cover the rise in expenses.
Profit After Tax
The net profit (after tax) for the quarter was ₹15,873 million, compared to ₹13,070 million in the same quarter last year. The profit grew because of higher revenue and a big jump in income from investments.
Earnings per share for the quarter were ₹19.13, up from ₹15.70 in the same quarter last year. This increase in EPS shows that the company made more profit for each share, benefiting its shareholders.
Earnings Growth and Operational Performance in FY 2024-25
In FY 2024-25, Dr. Reddy’s Laboratories showed strong growth. The total revenue for Q1 2025 was ₹85,060 million, which is 20.1% higher than the same quarter last year. This revenue growth led to a 25.2% increase in profit before tax (PBT), reaching ₹20,054 million, and a 21.9% rise in net profit (PAT), which was ₹15,873 million. Even though costs went up—mainly in production and business expenses—the company still managed to keep its profits strong, with gross profit rising by 13.9%.
Dr. Reddy’s also kept investing in new products, as shown by a small increase in research and development costs. The company’s earnings per share (EPS) grew from ₹15.70 to ₹19.13, meaning shareholders earned more. Overall, the company did well by growing its business, controlling costs, and continuing to invest in future products.
Dr Reddy’s Laboratories Financial Performance for FY 2024-25
| Sl. No. | Particulars | Quarter ended | Quarter ended | Quarter ended |
| 31.03.2025 | 31.12.2024 | 31.03.2024 | ||
| (Audited) | (Unaudited) | (Audited) | ||
| 1 | Revenues | 85,060 | 83,586 | 70,830 |
| 2 | Cost of revenues | 37,797 | 34,534 | 29,347 |
| 3 | Gross profit (1 – 2) | 47,263 | 49,052 | 41,483 |
| 4 | Selling, general and administrative expenses | 24,055 | 24,117 | 20,476 |
| 5 | Research and development expenses | 7,258 | 6,658 | 6,877 |
| 6 | Impairment of non-current assets, net | 768 | (-4) | (-173) |
| 7 | Other income, net | (2,465) | (439) | (656) |
| 8 | Total operating expenses | 29,616 | 30,332 | 26,524 |
| 9 | Results from operating activities [(3) – (4 + 5 + 6 + 7)] | 17,647 | 18,720 | 14,959 |
| 10 | Finance income | 3,008 | 798 | 1,615 |
| 11 | Finance expense | (656) | (818) | (593) |
| 12 | Finance (expense)/income, net | 2,352 | (20) | 1,022 |
| 13 | Share of profit of equity accounted investees, net of tax | 55 | 42 | 35 |
| 14 | Profit before tax (8 + 9 + 10) | 20,054 | 18,742 | 16,016 |
| 15 | Tax expense, net | 4,181 | 4,704 | 2,946 |
| 16 | Profit for the period/year (11 – 12) | 15,873 | 14,038 | 13,070 |
| Attributable to: | ||||
| Equity holders of the parent company | 15,939 | 14,133 | 13,070 | |
| Non-controlling interests | (66) | (95) | – | |
| 17 | Earnings per equity share attributable to equity shareholders of parent | |||
| 18 | Basic earnings per share of Re.1/- each | 19.13 | 16.96 | 15.70 |
| 19 | Diluted earnings per share of Re.1/- each | 19.11 | 16.94 | Earnings per equity share attributable to equity shareholders of the parent |
Conclusion
Dr. Reddy’s Laboratories performed well financially on the quarter and year ending 31 March 2025. The company shown good revenue growth is due to strong sales and smart investments. As costs went up, especially for production and business expenses, Dr. Reddy’s managed to keep its profits high. The company also continued to invest in new products, which will help it grow in the future.
