L and T and Dr Reddy's Laboratories Report Mixed Q4FY23 Results, Declare Hefty Dividends
Meanwhile, Dr Reddy's Laboratories, a leading pharma company, posted a mixed bag of results for Q4FY23. The company reported a consolidated PAT of ₹1,055 crore, registering a massive YoY growth of 226%. However, sequentially, the PAT declined by 29%. Consolidated revenue for the quarter stood at ₹5,124 crore, registering a YoY growth of 17%. The company's EBITDA for the quarter came in at ₹1,405 crore, up by 24% YoY, while EBITDA margin improved to 27.4%.
The company's performance was impacted by several factors, including lower sales in key markets due to pandemic-related disruptions, increased competition in certain segments, and regulatory issues faced by the company. Despite these challenges, Dr Reddy's management remained optimistic about the future, stating that the company is well-positioned to capitalize on the growing demand for pharmaceuticals globally.
Dr Reddy's board of directors announced a final dividend of ₹25 per equity share for the financial year 2021-22, subject to the
approval of shareholders. The dividend payout amounted to 250% of the face value of the shares and is in addition to the interim dividend of ₹25 per share paid earlier in the year.
Despite the positive financial results and dividend announcements by both L&T and Dr Reddy's, the share prices of both companies witnessed a decline on Wednesday. L&T's stock ended marginally lower, while Dr Reddy's share price closed down by 1.3%. The market reaction could be attributed to several factors, including profit-booking by investors and concerns about the future prospects of the companies.
While L&T and Dr Reddy's Laboratories have declared hefty dividends for their shareholders, the two companies have faced different challenges in their respective sectors during Q4FY23. L&T's revenue missed expectations, but its operational performance remained healthy, while Dr Reddy's witnessed a mixed bag of results, with a massive YoY rise in PAT, but a sequential decline. The companies' performances
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future prospects will continue to be closely monitored by investors and analysts in the coming quarters.
On a YoY basis, the company's PAT rose multi-fold to Rs1,154 crore, primarily due to lower base effect and a deferred tax benefit of Rs341 crore. However, sequentially, the company's performance was not up to the mark, with PAT declining by 9.4%. The company's revenue for the quarter stood at Rs4,775 crore, up 15.8% YoY and 1.6% QoQ. The company's EBITDA for the quarter came in at Rs1,040 crore, up 45.5% YoY and 2.2% QoQ.
In terms of geographical performance, the company's India business witnessed robust growth, with revenues increasing by 21% YoY to Rs1,616 crore. However, North America, the company's largest market, saw a decline of 3% YoY in revenues to Rs2,428 crore. The company's Europe and Emerging Markets businesses grew by 33% and 25% YoY, respectively.
Dr Reddy's management also expressed optimism about the future. GV Prasad, Co-Chairman
Managing Director of Dr Reddy's Laboratories, said, "We have delivered a healthy performance for the quarter and the year, driven by a robust performance in the India business and improved performance in the North America and Europe businesses. We continue to focus on our growth strategy and remain confident of delivering sustainable growth in the future."
The company has declared a final dividend of Rs25 per share, subject to the approval of shareholders. The record date for the dividend is May 19, 2023.
Overall, both L&T and Dr Reddy's Laboratories have reported decent performances for Q4FY23, with L&T witnessing healthy operational performance despite challenges and Dr Reddy's Laboratories reporting a mixed set of numbers but expressing confidence about the future. Both companies have declared a hefty dividend for shareholders, which is a positive sign for investors. However, the decline in their share prices on Wednesday indicates that the market was not entirely satisfied with their performances.