Dr Reddy's drops after weak Q1 outcome

Dr Reddy's Laboratories lost 2.65% to Rs 2,638.70 at 15:05 IST on BSE after consolidated net profit declined 56.61% to Rs 66.60 crore on 1.8% rise in total income to Rs 3371.20 crore in Q1 June 2017 over Q1 June 2016.

The announcement was made during market hours today, 27 July 2017.

Meanwhile, the S&P BSE Sensex was up 12.88 points or 0.04% at 32,395.34

On the BSE, 76,000 shares were traded on the counter so far as against the average daily volumes of 32,560 shares in the past one quarter. The stock had hit a high of Rs 2,725 and a low of Rs 2,633.20 so far during the day. The stock had hit a 52-week high of Rs 3,516.95 on 26 July 2016 and a 52-week low of Rs 2,382.05 on 29 May 2017.

The stock had underperformed the market over the past one month till 26 July 2017, rising 2.12% compared with the Sensex's 4% rise. The stock also underperformed the market over the past one quarter, rising 4.52% as against the Sensex's 7.46% rise. The scrip, however, underperformed the market over the past one year, sliding 9.3% as against the Sensex's 15.75% rise.

The large-cap company has equity capital of Rs 82.91 crore. Face value per share is Rs 5.

Dr Reddy's Laboratories' consolidated earnings before interest, taxation, depreciation and amortization (EBITDA) declined 15.56% to Rs 336 crore in Q1 June 2017 over Q1 June 2016. EBITDA margin contracted to 10.1% in Q1 June 2017, from 12.3% in Q1 June 2016.

Commenting on the results, Dr Reddy's Laboratories Co-Chairman and CEO G V Prasad said that while headwinds in the form of price erosion due to US customer consolidation continue, a lower contribution from new product launches in the US and GST implementation in India also impacted the company's performance.

Dr Reddy's Laboratories is an integrated global pharmaceutical company.

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