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Dr Reddy’s Laboratories is the top Sensex loser, down over 4% at Rs 3,221 on the BSE (Bombay Stock Exchange) after reporting a 7.1% decline in consolidated net profit to Rs 574.5 crore for the quarter ended December on the back of higher operational costs and subdued revenue growth particularly in the most profitable US market. However, the decline was lesser than expected.
The Street was expecting Russia and CIS revenues to be impacted severely during the quarter due to Rouble depreciation and softer US sales. The impact, however, was much lesser.
"The impairments amounting to almost Rs 100 crore as well as the depreciation of Rouble, which fell 30% during the quarter, had impacted the bottom line," Dr Reddy's chief financial officer Saumen Chakraborty said.
Post the results, analysts remain positive on the company's prospects. While Hitesh Mahida at Antique Stock Broking has a target price of Rs 4,102, Sarabjit Kour Nangra of Angel Broking has a target price of Rs 3,935.
The stock opened at Rs 3,365 and touched a low of Rs 3,200 on the BSE. Till 1250 hours, a combined around 5 lakh shares changed hands on the counter on BSE and NSE.
