Dr Reddy’s Falls Short Of Estimates With 60% Drop In Profit
Dr Reddy’s Laboratories Ltd. missed analyst estimates in the July to September quarter as profit fell 60.1 percent, but the stock rose as the performance improved on a sequential basis.
Net profit fell to Rs 309 crore from Rs 774.4 crore in the same quarter last year, according to the company’s results posted on stock exchanges. The profit fell short of the Rs 346.3 crore consensus estimate of analysts tracked by Bloomberg.
Revenue dropped 10 percent to Rs 3,529 crore, just short of analyst estimates. Other income stood at Rs 43.8 crore as of September 30 ,2016.
Net profit doubled on a quarter-on-quarter basis, while revenue grew 10.8 percent compared to the April to June quarter.
Earnings before interest, tax, depreciation and amortisation fell 6.4 percent year-on-year to Rs 630 crore, while EBITDA margin fell to 17.4 percent from 29.2 percent.
We have made considerable progress in our remediation efforts and continue to work on addressing the concerns of the regulators. Looking ahead we will continue to focus on launching new products in our generic business, improving productivity and strengthening our quality management systems.GV Prasad, Co-Chairman and CEO, Dr Reddy’s Laboratories
The drug maker registered a year-on-year growth only in the India market, growing 14 percent. Sales in North America and Europe showed a de-growth, with emerging markets taking the biggest hit of 27 percent over the year.
Shares of Dr Reddy’s rose as much as 2.4 percent to Rs 3,164 immediately after the announcement of the results, before drifting to Rs 3,103 as of 11:55 a.m.