Dr Reddy's Laboratories Q2 net up 7.4% at Rs 308 cr

Pharmaceutical firm Dr Reddy's Labs has reported better than expected increase of 7.4% in consolidated net profit of Rs 308 crore for the second quarter of FY12 as against Rs 286.8 crore in the corresponding quarter of last fiscal.

Consolidated revenue surged 21.3% to Rs 2,268 crore from Rs 1,870 crore year-on-year.

Topline as well as bottomline came in better than estimates; CNBC-TV18 expected net sales of Rs 2,096 crore and net profit of Rs 270 crore.

But, operating profit margin grew at 16.5% in July-September quarter of FY12 as against 17.3% in same quarter the previous year.

Key Highlights

Consolidated revenues are at Rs 22.7 billion ($462 million) in Q2 FY12 versus Rs 18.7 billion ($381 million) in Q2 FY11, year-on-year growth of 21%. Consolidated revenues for H1 FY12 is at Rs 42.5 billion ($866 million).

Revenues from Global Generics for Q2 FY12 are at Rs 16.1 billion ($329 million). Year-on-year growth of 18% mainly driven by North America and Russia.

Revenues from PSAI are at Rs 5.9 billion ($121 million) in Q2 FY12, growth of 28% over previous year.

Adjusted EBITDA of Rs 5.1 billion ($104 million) in Q2 FY12, is at 23% of revenues recording year-on-year growth of 20%. Consolidated adjusted EBITDA for H1 FY12 is at Rs 9.4 billion ($193 million).

Adjusted Profit after Tax for Q2 FY12 is at Rs 3.1 billion ($63 million), is at 14% of revenues with year-on-year growth of 8%. Consolidated adjusted PAT for H1 FY12 is at Rs 5.6 billion ($115 million).

During the quarter, the company launched 28 new generic products, filed 17 new product registrations and filed 11 DMFs globally.

Dr. Reddy’s today announced the final approval of its olanzapine 20 mg tablets, the generic version of Eli Lilly’s Zyprexa® from the USFDA.

Recommendations

Rakesh Bansal for rakeshbansal.com is positive on Dr Reddys. Investors should buy Dr Reddys with a target of Rs 1610 and stoploss is Rs 1515.

The stock shut shop at Rs 1,579.60, up Rs 35.10, or 2.27%. It touched an intraday high of Rs 1,587.95 and an intraday low of Rs 1,550.00

Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd