Dr Reddy's Laboratories gains as Q2 profit beat estimates

The stock was up 3% at Rs 4,336, extending its previous day's 2.6% gain on the NSE.

Dr Reddy’s Laboratories is trading higher by 3% at Rs 4,336, extending its previous day’s 2.6% gain on the NSE, in otherwise subdued market after the drug maker reported a better-than expected 46% year on year (YoY) growth in net profit at Rs 721 crore for the second quarter ended September 30, 2015 (Q2). It had profit of Rs 574 crore in a year ago quarter.

Net income from sales and services during the quarter grew 11% YoY at Rs 3,989 crore mainly driven by global generics. 

In global generics, the key markets- USA, Europe and India, posted a growth of 32%, 65% and 14% yoy, Dr Reddy’s Laboratories said in a statement.

Revenues from Emerging markets however declined by 22% YoY, it added.

Analysts on an average had expected profit of Rs 650 crore and net sales of Rs 3,964 crore for the quarter.

Earnings before interest, tax, depreciation and amortization (EBITDA) margin improved 430 basis points to 28.6% from 24.3%.

The stock hit an intra-day high of Rs 4,365, is less than 1% away from its record high of Rs 4,387 on NSE touched in last week on October 20. Till 09:57 am, a combined 416,537 shares changed hands on the counter on the NSE and BSE.