Dr Reddy's Lab gains on strong Q4 earnings

Meanwhile, the S&P BSE Sensex was up 380.80 points or 1.93% at 20,103.09.

On BSE, 19,000 shares were traded in the counter as against average daily volume of 16,908 shares in the past one quarter.

The stock hit a high of Rs 2,072.40 and a low of Rs 2,040 so far during the day. The stock had hit record high of Rs 2,150.90 on Monday, 13 May 2013. The stock had hit a 52-week low of Rs 1,528 on 19 June 2012.

The stock underperformed the market over the past one month till 14 May 2013, surging 6.53% compared with the Sensex's 8.11% rally. The scrip had, however, outperformed the market in past one quarter, jumping 7.85% as against Sensex's 1.15% rise.

The large-cap company has equity capital of Rs 84.91 crore. Face value per share is Rs 5.

Shares of Dr Reddy's Laboratories had fallen 2.65% to settle at Rs 2,025.65 on Tuesday, 14 May 2013 on profit booking after the company reported good Q4 results. The stock had witnessed a pre-result rally. The stock had surged 10.44% to settle at Rs 2,080.95 on Monday, 13 May 2013, from a recent low of Rs 1,884.20 on 22 April 2013.

Dr Reddy's Laboratories' consolidated net profit surged 67% to Rs 570.90 crore on 26% growth in revenue to Rs 3340 crore in Q4 March 2013 over Q4 March 2012. Earnings before interest, taxation, depreciation and amortization (EBITDA) surged 37% to Rs 930 crore in Q4 March 2013 over Q4 March 2012. EBITDA constituted 28% of revenue in Q4 March 2013.

Dr Reddy's Laboratories' consolidated net profit, adjusted for impairment of intangibles/goodwill, rose 17% to Rs 1750 crore on 20% growth in revenue to Rs 11630 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012).

Dr Reddy's Laboratories' consolidated revenue excluding the beneficial impact of Olanzapine exclusivity in FY 2012 rose 26% YoY in FY 2013. EBITDA rose 9.5% to Rs 2780 crore in FY 2013 over FY 2012. EBITDA accounted for 24% of revenue in FY 2013, Dr. Reddy's Lab said in a statement.

Dr Reddy's Laboratories said that the revenue growth in FY 2013 was primarily driven by North America and Emerging markets (which include Russia, other CIS countries and Rest of World territories) in the Global Generics segment; and overall performance by Pharmaceutical Services and Active Ingredients segment.

During the year, the company benefited by an amount of $22.5 million from one-time settlement done with Nordion Inc (which is formerly MDS Inc). The settlement is towards the damages sustained by the company due to the breach by Nordion of the then existing laboratory services agreement for bioequivalence studies, Dr Reddy's Lab said in statement.

Dr Reddy's Laboratories' capital expenditure for FY 2013 was Rs 660 crore.

In Q4 March 2013, the company launched 18 new generic products, filed 14 new product registrations and filed 17 DMFs globally. In FY 2013, the company launched 78 new generic products, filed 56 new product registrations and filed 47 DMFs globally.

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 APIs, custom pharmaceutical services, generics, biosimilars and differentiated formulations. Major Therapeutic focus is on gastro-intestinal, cardiovascular, diabetology, oncology, pain management and anti-infective. Major markets include India, USA, Russia-CIS and Europe apart from other select geographies within emerging markets.

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