Dr Reddys Lab extends gain strong Q2 results

Q2 net profit up 32% at Rs 407 crore on yoy, on back of strong performance by its pharmaceutical-services and U.S. generic-drugs businesses

Dr Reddys Laboratories is trading higher by 3% at Rs 1,769 extending its previous day’s around 2% gain after reporting a better-than-expected 32% year-on-year (yoy) jump in net profit at Rs 407 crore in September 2012 quarter on back of strong performance by its pharmaceutical-services and U.S. generic-drugs businesses.

Income from sales rose 27% to Rs 2,881 crore on year-on-year basis. Analysts on an average expected net profit of Rs 376 crore and net sales of Rs 2,763 crore.

“Revenues from the global generic segment for Q2FY13 at Rs 2,010 crore, recorded y-o-y growth of 25% primarily driven by North America, India and other emerging markets,” Dr Reddys Laboratories said in a statement.

Analyst at Karvy Institutional Equities has maintain “BUY” recommendation on the stock and upgrade target price to Rs 2170 saying that launch of exclusive Propecia in Q4FY13, 2 niche launches in FY14, hospital launch of Fondaparinux and EU approval for the same will aid revenue growth

The stock opened at Rs 1,732 and hit high of Rs 1,770 on the BSE. A combined 221,481 shares have changed hands on the counter so far on both the exchanges.