Dr. Reddy's gains as worries about spending ease

Reuters Market Eye - Shares of Dr. Reddy's Laboratories rise, adding to Friday's 1.8 percent gain, after the drugmaker's annual report last week provided key details about spending on building capacity, raising hopes that expenses would reduce after FY16, dealers say.

Dr. Reddy's said in its annual report filed with the U.S. Securities and Exchange Commission that the company would finance expansion plans through operating cash flow and through cash and other investments, and that the majority of these projects would be completed during the fiscal years ending in March 2015 and March 2016.

Investors had worried about Dr. Reddy's spending after the drugmaker's quarterly net profit fell short of analysts' estimates due to a rise in expenses.

 

Shares in Dr. Reddy's were trading up 2.8 percent to 2624 rupees as of 3:19 a.m.

(Reporting Abhishek Vishnoi)