Dr Reddy's Lab trims gains after weak Q3 earnings

Dr Reddy's Laboratories rose 1.91% to Rs 3,300 at 14:29 IST on BSE after consolidated net profit declined 7% to Rs 574.50 crore on 9% growth in revenues to Rs 3843.10 crore in Q3 December 2014 over Q3 December 2013.

The Q3 result was announced during market hours today, 29 January 2015.

Meanwhile, the S&P BSE Sensex was down 133.77 points or 0.45% at 29,425.41.

On BSE, so far 55,000 shares were traded in the counter as against average daily volume of 24,812 shares in the past one quarter.

The stock was volatile. The stock rose as much as 3.44% at the day's high of Rs 3,349.50 so far during the day. The stock fell as much as 0.76% at the day's low of Rs 3,213.20 so far during the day. The stock had hit a record high of Rs 3,662 on 1 December 2014. The stock had 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 January 2015, advancing 3.46% compared with the Sensex's 8.51% rise. The scrip had also underperformed the market in past one quarter, rising 5.11% as against Sensex's 9.96% rise.

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

Dr Reddy's Laboratories' EBITDA (earnings before interest, taxation, depreciation, and amortization) rose 4.63% to Rs 1051.50 crore in Q3 December 2014 over Q3 December 2013.

Revenue from Global Generics business rose 8% to Rs 3170 crore in Q3 December 2014 over Q3 December 2013, primarily driven by Branded Markets. Revenue from Pharmaceutical Services and Active Ingredients (PSAI) rose 21% to Rs 610 crore in Q3 December 2014 over Q3 December 2013.

During the quarter, the company completed the acquisition of Habltrol franchise (an over-the-counter nicotine replacement therapy transdermal patch) from Novartis Consumer Health Inc. and began marketing the product in the US. Total consideration paid was $80 million, Dr Reddy's Lab said.

The company's capital expenditure for Q3 December 2014 was at Rs 265 crore.

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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