New products in mkt key to Dr Reddy's guidance: Centrum

Centrum Broking's Ranjit Kapadia explains to CNBC-TV18 that the performance of Dr Reddy's 18 new products is key to a revision of the management’s guidance.

Below is an edited transcript of the analysis on CNBC-TV18 Q: What is your opinion of Dr Reddy's results and the big boost in the EBITDA this time around?
A: I think there has been a big boost in the topline EBITDA and the bottomline. The company has reported growth of about 47 percent in the North American market and the global generic business which is about 70 percent, grew by 25 percent during the quarter. So this has caused the results and EBITDA margins to improve by almost 450 bps, around 26.5 percent. The bottomline grew 32 percent from Rs 307 crore to Rs 407 crore. Q: The management had earlier provided guidance that the company's US business would post around USD 900 million in FY13. With this quarter’s results, how optimistic are you on the total guidance for Dr Reddy’s for FY13 as well as for its US business?
A: I think the US market has been picking up for most generic companies and the company has introduced 18 new products during the quarter. So going forward, the guidance will have to be revised based on how these products perform in the market.