Dr. Reddy's retreats from record after earnings

Dr. Reddy's retreats from record after earnings

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REUTERS MARKET EYE: Shares in Dr.Reddy's Laboratories Ltd fell 2.4 percent after its January-March earnings results, retreating from a record high hit in the previous session even as consolidated net profit and operating margins beat estimates.

Dr.Reddy's earlier said its January-March consolidated net profit rose 66.5 percent to 5.71 billion rupees from a year earlier.

That was above expectations of a consolidated net profit of 4.47 billion rupees.

Analysts said Dr.Reddy's operating margins also were better than estimates.

"At operational level, Dr.Reddy's margins have come in at 23 percent, which are higher than estimates," said Surya Narayan Patra, an analyst tracking the sector at Systematix.

Dr.Reddy's shares have risen 13.5 percent so far this year as of Monday's close, outperforming a 1.3 percent gain in the broader Nifty.

(Reporting by Abhishek Vishnoi)