Dr. Reddy Labs gains after strong Q1 figures

Dr. Reddy's Laboratories gained 1.03% to Rs 2680 at 9:37 IST on the BSE after consolidated net profit rose 42.1% to Rs 676.50 crore on 3.3% increase in net sales to Rs 3843.60 crore in Q1 June 2019 over Q1 June 2018.

The result was announced after market hours yesterday, 29 July 2019.

Meanwhile, the S&P BSE Sensex was up by 203.24 points or 0.54% to 37,889.61.

On the BSE, 26000 shares were traded in the counter so far compared with average daily volumes of 16000 shares in the past two weeks. The stock had hit a high of Rs 2691 and a low of Rs 2610 so far during the day. The stock hit a 52-week high of Rs 2965.2 on 2 February 2019 and a 52-week low of Rs 2060 on 30 July 2018.

The revenue from global generics (GG) segment rose 8% to Rs 3300 crore in Q1 June 2019 over Q1 June 2018. The revenue was primarily driven by earnings in emerging markets, India and Europe. Revenue from North America grew 3% to Rs 1630 crore in Q1 June 2019 over Q1 June 2018. Revenue from emerging markets rose 10% to Rs 730 crore in Q1 June 2019 over Q1 June 2018.

Revenue from India soared 15% to Rs 700 crore in Q1 June 2019 over Q1 June 2018 driven by volume traction and improved realizations in base business and new product launches.

In a separate announcement, the company announced that the board of directors has approved an amalgamation of Dr. Reddy's Holdings (DRHL) an entity held by the promoter group, which holds 24.88% equity shares of Dr. Reddy's Laboratories (DRL), into the company. The scheme would lead to simplification of the shareholding structure and reduction of shareholding tiers. The promoter group cumulatively will continue to hold the same number of shares in the Company, pre and post the amalgamation.

The company has also announced the appointment of Erez Israeli as the chief executive officer (CEO) - key managerial personnel (KMP) of the company with effect from 1 August 2019.

Dr Reddy's Laboratories is an integrated global pharmaceutical company, committed to providing affordable and innovative medicines for healthier lives.

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