Dr Reddy's Lab drops in volatile trade after declaring weak Q2 result

Dr Reddy's Laboratories fell 1.81% to Rs 3,025 at 13:23 IST on BSE, after consolidated net profit fell 16.82% to Rs 574.10 crore on 5.64% growth in total income to Rs 3614.37 crore in Q2 September 2014 over Q2 September 2013.

The Q2 result was announced during market hours today, 29 October 2014.

Meanwhile, the BSE Sensex was up 154.68 points, or 0.58%, to 27,035.50

On BSE, so far 52,973 shares were traded in the counter, compared with an average volume of 21,177 shares in the past one quarter.

The Dr Reddy's Laboratories stock reversed intraday gain in volatile trade after declaring weak Q2 result. The stock rose as much as 1.18% at the day's high of Rs 3,117.30 so far during the day. The stock fell as much as 2.74% at the day's low of Rs 2,996 so far during the day. The stock had scaled a record high of Rs 3,353.85 on 25 September 2014. The stock hit a 52-week low of Rs 2,250 on 19 May 2014.

The stock had underperformed the market over the past one month till 28 October 2014, falling 4.54% compared with 0.96% rise in the Sensex. The scrip, however, outperformed the market in past one quarter, rising 11.35% as against Sensex's 3.42% rise.

The large-cap company has an equity capital of Rs 85.18 crore. Face value per share is Rs 5.

Dr Reddy's Laboratories' consolidated revenues rose 7% to Rs 3590 crore in Q2 September 2014 over Q2 September 2013. Revenues from the Global Generics (GG) segment rose 9% to Rs 2890 crore in Q2 September 2014 over Q2 September 2013 were primarily driven by India, Rest of the World market territories (primarily Venezuela) and North America. Revenues from the Pharmaceutical Services and Active Ingredients (PSAI) segment stood at Rs 640 crore in Q2 September 2014.

Dr Reddy's Laboratories' gross profit margin rose 50 basis points to 58.5% in Q2 September 2014 from 58% in Q2 September 2013. Gross profit margin in Q2 September 2014 for GG and PSAI business segments stood at 65.6% and 26.8%, respectively, Dr Reddy's Laboratories said.

Earnings before interest, taxation, depreciation and amortization (EBITDA) fell 8% to Rs 870 crore in Q2 September 2014 over in Q2 September 2013. Capital expenditure stood at Rs 230 crore in Q2 September 2014.

During Q2 September 2014, the company launched 9 new generic products, filed 10 new product registrations and 28 Drug Master File (DMFs) globally.

At the time of announcement of the second quarter results, Dr Reddy's Laboratories said that the company recently entered into an asset purchase agreement with Novartis Consumer Health Inc. to acquire the title and rights to Habltrol franchise (an over the counter nicotine replacement therapy transdermal path) and to market the product in the US territory.

Dr Reddy's Laboratories is an integrated global pharmaceutical company. Through its three businesses - Pharmaceutical Services and Active Ingredients, Global Generics and Proprietary Products - Dr Reddy's offers a portfolio of products and services including active pharmaceutical ingredients (APIs), custom pharmaceutical services, generics, biosimilars and differentiated formulations.

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