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Dr Reddy's Lab drops on poor Q4 result

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Capital Market
Last Updated : May 13 2014 | 11:57 PM IST

Dr Reddy's Laboratories lost 3.91% to Rs 2,612.80 at 14:41 IST on BSE after consolidated net profit declined 15.64% to Rs 481.60 crore on 0.01% growth in total income to Rs 3503.53 crore in Q4 March 2014 over Q4 March 2013.

The company announced Q4 result during trading hours today, 13 May 2014.

Meanwhile, the S&P BSE Sensex was up 334.16 points or 1.42% at 23,885.16

On BSE, so far 53,713 shares were traded in the counter as against average daily volume of 29,023 shares in the past one quarter.

The stock hit a high of Rs 2,743.05 and a low of Rs 2,610 so far during the day. The stock had hit a record high of Rs 2,939.80 on 28 February 2014. The stock had hit a 52-week low of Rs 2,012 on 21 May 2013.

The stock had outperformed the market over the past one month till 12 May 2014, rising 5.8% compared with 4.07% rise in the Sensex. The scrip, however, underperformed the market in past one quarter, gaining 3.95% as against Sensex's 15.17% rise.

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The large-cap company has equity capital of Rs 85.05 crore. Face value per share is Rs 5.

Dr Reddy's Laboratories' consolidated net profit rose 28.22% to Rs 2151.20 crore on 12.49% growth in total income to Rs 13358.62 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).

Gross profit margin fell to 51.4% in FY 2014 from 52.1% in FY 2013. However, gross profit margin rose to 57.2% in Q4 March 2014 from 50.4% in Q4 March 2013.

Research & Development (R&D) expenses rose 62% to Rs 1240 crore in FY 2014 over FY 2013. Selling, general & administrative (SG&A) expenses rose 13% to Rs 3880 crore in FY 2014 over FY 2013.

Earnings before interest, taxation, depreciation and amortization (EBITDA) rose 19% to Rs 3320 crore in FY 2014 over FY 2013.

The company launched 54 new generic products, filed 51 new product registrations and 61 DMFs globally in FY 2014, Dr Reddy's Laboratories said. The company launched 13 new generic products, filed 22 new product registrations and 29 DMFs globally in Q4 March 2014.

Dr Reddy's Laboratories during market hours said that board of directors of the company has decided to have separate roles of the Chairman of the company and Managing Director and CEO.

The company has appointed Satish Reddy as Chairman of the Board. He previously held the position of Vice-Chairman, Managing Director and COO. GV Prasad will continue as the CEO and provide leadership to the company in an executive role. He has also been appointed as the Co-Chairman and Managing Director.

The company also announced that Abhijit Mukherjee, President, Global Generics, has been appointed as Chief Operating Officer (COO). He will be responsible for both the global generics and pharmaceutical services and activate ingredients (PSAI) businesses.

Dr. Reddy's Laboratories said that Board of Directors of the company at its meeting held today, 13 May 2014, have recommended a final dividend of Rs 18 per share for the financial year ended 31 March 2014.

Dr Reddy's Laboratories is an integrated global pharmaceutical company. Through its three businesses - Pharmaceutical Services and Active Ingredients, Global Generics and Proprietary Products - Dr. Reddy's offers a portfolio of products and services including active pharmaceutical ingredients (APIs), custom pharmaceutical services, generics, biosimilars and differentiated formulations.

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First Published: May 13 2014 | 2:44 PM IST

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