Q2FY11 preview for Dr Reddy by Centrum,

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Dr Reddys (Rating – Under Review)
􀂁 We expect muted 5.6% YoY growth in the topline to Rs19.4bn.
􀂁 The company is expected to report an EBIDTA margin of 19.6%, a 130bps YoY increase owing to
high-margin Lotrel and Prograf sales.
􀂁 We expect the adjusted profit to be Rs2.6bn – a 2.2% YoY drop because of the €6mn inventory
adjustment at Betapharm and US$4mn for Sumatriptan that they took in during Q2FY10.
Consequently, on a reported basis, PAT appears to have increased by 19.3% on a YoY (reported)
basis.