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Dr. Reddy's Lab drops on profit booking after strong Q3 results

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Capital Market
Last Updated : Feb 11 2014 | 11:59 PM IST

Dr. Reddy's Laboratories lost 0.67% to Rs 2,658.95 on BSE on profit taking after consolidated net profit surged 70.21% to Rs 618.42 crore on 22.95% growth in total income to Rs 3551.49 crore in Q3 December 2013 over Q3 December 2012.

The results are as per International Financial Reporting Standards (IFRS). The results hit the market during trading hours today, 11 February 2014.

The S&P BSE Sensex was up 29.10 points or 0.14% at 20,363.37.

On BSE, so far 64,395 shares were traded in the counter as against average daily volume of 13,506 shares in the past one quarter.

The stock was volatile. The stock rose as much as 0.86% at the day's high of Rs 2700 in intraday trade, which is a record high for the counter. The stock lost as much as 1.89% at the day's low of Rs 2,626.20. The stock hit a 52-week low of Rs 1,720.50 on 1 March 2013.

The stock had outperformed the market over the past one month till 10 February 2014, advancing 1.96% compared with the Sensex's 2.04% fall. The scrip had also outperformed the market in past one quarter, jumping 11.49% as against Sensex's 1.61% fall.

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

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Shares of Dr. Reddy's Laboratories had witnessed a pre-result rally. The stock had risen 3.11% in four trading sessions to settle at Rs 2,676.80 on Monday, 10 February 2014, from a recent low of Rs 2,596.05 on 4 February 2014.

Dr. Reddy's Laboratories' consolidated EBITDA (earnings before interest, taxation, depreciation and amortization) rose 66.53% to Rs 1004.90 crore in Q3 December 2013 over Q3 December 2012. EBITDA stood at 28.4% of revenue in Q3 December 2013, as against 21.1% of revenue in Q3 December 2012.

Revenue from Global Generics (GG) segment rose 41% to Rs 2940 crore in Q3 December 2013 over Q3 December 2012, driven by North America and other Emerging Markets.

Revenue from the Pharmaceutical Services and Active Ingredients (PSAI) sement declined 29% to Rs 510 crore in Q3 December 2013 over Q3 December 2012.

Research & Development (R&D) expenses rose 47% to Rs 300 crore in Q3 December 2013 over Q3 December 2012. R&D expenses were 8.4% of revenues in Q3 December 2013 as against 7.1% of revenues in Q3 December 2012.

The company incurred capital expenditure of Rs 240 crore in Q3 December 2013.

During the quarter, the company launched 7 new generic products, filed 4 new product registrations and filed 19 DMFs globally.

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: Feb 11 2014 | 4:02 PM IST

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