Dr Reddy's Lab gains after stellar Q1 outcome

Dr Reddy's Laboratories rose 1.86% to Rs 2,818 at 15:05 IST on BSE after consolidated net profit surged 52.49% to Rs 550.39 crore on 22.67% growth in total income to Rs 3536.02 crore in Q1 June 2014 over Q1 June 2013.

The Q1 result was announced during market hours today, 30 July 2014.

Meanwhile, the S&P BSE Sensex was up 29.46 points or 0.11% at 26,020.69

On BSE, so far 40,324 shares were traded in the counter as against average daily volume of 34,739 shares in the past one quarter.

The stock was volatile. The stock hit a high of Rs 2,852 and a low of Rs 2,766 so far during the day. The stock had hit a record high of Rs 2,939.80 on 28 February 2014. The stock had hit a 52-week low of Rs 2,025 on 21 August 2013.

The stock had outperformed the market over the past one month till 28 July 2014, rising 8.36% compared with 3.55% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, rising 3.53% as against Sensex's 14.84% rise.

The large-cap company has equity capital of Rs 85.17 crore. Face value per share is Rs 5.

Dr Reddy's Laboratories consolidated revenues rose 24% to Rs 3520 crore in Q1 June 2014 over Q1 June 2013. Revenues from the Global Generics (GG) segment rose 32% to Rs 2900 crore in Q1 June 2014 over Q1 June 2013. Revenues from the Pharmaceutical Services and Active Ingredients (PSAI) segment fell 6% to 550 crore in Q1 June 2014 over Q1 June 2013.

Earnings before interest, taxation, depreciation and amortization (EBITDA) rose 56% to Rs 890 crore in Q1 June 2014 over Q1 June 2013.

Gross Profit Margin improved to 59.3% in Q1 June 2014 from 52.8% in Q1 June 2013. Research & Development (R&D) expenses rose 59% to Rs 390 crore in Q1 June 2014 over Q1 June 2013. Selling, general & administrative (SG&A) expenses rose 21% to Rs 1070 crore in Q1 June 2014 over Q1 June 2013.

The company launched 25 new generic products, filed 27 new product applications and 20 DMFs globally, Dr Reddy's Laboratories said. Capital expenditure for Q1 June 2014 stood at Rs 220 crore, the company said.

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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