Dr Reddy's gains 6% post September quarter results

The stock gained 6.5% to Rs 2,559 after the company reported a good operational performance in September quarter, on account of lower R&D, higher other income, financial income, and lower tax.

Shares of Dr Reddy’s Laboratories have gained 6.5% to Rs 2,559 on the BSE in intra-day trade so far after the company reported a good operational performance in September quarter (Q2FY19), on account of lower R&D, higher other income, financial income, and lower tax.

Earnings before interest, tax, depreciation and amortization (Ebitda) margin of the drug maker improved by 340 bps at 22.8% in Q2FY19 from 19.4% in Q2FY18. In Q1FY19, Ebitda stood at 19.4%.

“The year-on-year (Y-o-Y) improvement in gross margin primarily aided by contribution from new launches, improved leverage, better product mix coupled with favorable foreign