Views on Dr.Reddy's Laboratories Ltd 1QFY2018 Results: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research- Pharma, Angel Broking):

"Dr Reddy's Labs, posted poor results, much lower than expectations, the sales came in at INR 3,316cr V/s INR 3,636cr expected in 1QFY2018 V/s INR 3,235cr, a YoY growth of 2.5%. Global Generics (INR 2,745.5cr), a YoY growth of 3.0%, while PSAI(INR 465.1cr), a YoY de-growth of 1.0%. The Global Generics, which 83% of overall sales, saw dip in its key growth market USA(INR 1,494.6cr), which posted a dip of 4.0% YoY , while India(INR 468.7cr) , posted a dip of 10.0%. The USA market continued to reel under the pricing pressures, while Indian sales were under the pressure on back of the GST. On operating front, the EBDITA came in at 9.2% V/s 16.1% expected in 1QFY2018 V/s 11.7% in 1QFY2017. R&D expenses were at 15.3% of sales in 1QFY2018 V/s 14.8% of sales in 1QFY2017. Consequently, the PAT came in at INR 59.1cr V/s INR 321cr expected in 1QFY2018 V/s INR 126cr in 1QFY2017, a YoY de-growth of 53.2%. We maintain our NEUTRAL rating on the stock."

Shares of DR.REDDY'S LABORATORIES LTD. was last trading in BSE at Rs.2331.85 as compared to the previous close of Rs. 2379.85. The total number of shares traded during the day was 58841 in over 4098 trades.

The stock hit an intraday high of Rs. 2399 and intraday low of 2323. The net turnover during the day was Rs. 138943532.

Source : Equity Bulls

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