Dr Reddy's Laboratories plunges 7% on disappointing Q4 margin

On the YoY basis, the company's gross margin declined by around 100 bps, primarily on account of price erosion, partially offset by new launches and favorable forex rates

Shares of Dr Reddy’s Laboratories plunged 7 per cent to Rs 2,544 in intra-day trade on the BSE in an otherwise strong market after the company reported disappointing margin in January-March quarter (Q4FY19).

The company’s gross margin for the Q4 was at 52.4 per cent. On the year-on-year (YoY) basis, the gross margin declined by around 100 basis points (bps), primarily on account of price erosion, partially offset by new launches and favorable forex rates. On QoQ basis, the gross margin declined by around 150 bps, primarily on account of adverse forex rate from Q3 to Q4, change in