Dr Reddy's: Strong Q1 show in spite of disruption lifts sentiment

Normalising US and India sales likely to drive earnings in FY21

Better-than-expected performance in the June 2020 quarter (Q1) by Dr Reddy’s Laboratories helped its stock gain over 5 per cent on Wednesday to a new 52-week high.

Though US and India sales, as anticipated, were soft because of lockdowns, strong sales in Europe, the emerging markets, and in the active ingredient segment did the wonder.

The US had seen high-channel stocking during the March quarter and, hence, the numbers were expected to be soft. US sales (39 per cent of the overall) fell 4 per cent sequentially, while on year-on-year (YoY) basis, new launches and favourable forex movement pushed the figure up