GST, pricing pressure in US lead to dismal show for Dr Reddy's in Q1

With GST led destocking behind, next few quarters may see some improvement

Dr Reddy’s performance for the quarter ending June came much lower than expectations on all fronts. While the US business continues to see pricing pressure, the India business is seeing the impact of GST-led destocking, which has added to the company's woes. US generic sales, contributing 45 per cent to total revenues, declined four per cent year-on-year (y-o-y) while India formulations sales, contributing 14 per cent, declined by a sharp ten per cent. Though Europe generic sales, contributing about six per cent to total revenues, and emerging markets generic sales (17 per cent) did grow 28 and 34 per cent,