Visit http://indiaer.blogspot.com/ for complete details Dr Reddy’s Labs
Dr Reddy Labs (DRL) reported its 2QFY2011 results, which were primarily in line with
estimates. The company reported net sales of `1,870cr (`1,808cr), up 3.5%, driven by
domestic and Russia formulation business. On the global generic front, sales from US
increased by 3.1% to `442cr (`429cr), as the company witnessed a pick-up in new product
launches (generic version of Lotrel and Prograf). Further, growth in India and Russia
branded generic market came in at 25.4% and 17.2%, respectively. However, Europe
sales declined by 17.0% to `237cr (`285cr) due to price erosions. On the PSAI front, the
company reported a decline of 14.1% in net sales to `462cr (`538cr). DRL reported gross
margins of 53.4% (46.6%) for the quarter on the back of favourable product mix and lower
base effect (2QFY2010 had one-time inventory provision of US $12mn). The company
recorded net profit of `286cr (`217cr), up 31.8% yoy; excluding the inventory provision,
net profit is expected to have increased by 5.1% yoy. We recommend Neutral on the stock
at these levels.
No comments:
Post a Comment