Dr Reddys Lab Q1 net seen up 27.6% at Rs 450.3 cr: Emkay

Emkay Equity Advisory has come out with its first quarter (April-June) earnings estimates for the pharmaceutical sector. The brokerage house expects Dr Reddys Laboratories to report a 6.6 percent degrowth quarter-on-quarter (growth of 27.6 percent year-on-year) in net profit at Rs 450.3 crore.

Revenues are expected to decrease by 4.8 percent Q-o-Q (up 25.1 percent Y-o-Y) to Rs 3179.6 crore, according to Emkay Equity Advisory.

Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to fall by 8.4 percent Q-o-Q (up 33.7 percent Y-o-Y) to Rs 667.7 crore.

EBITDA margin or operating profit margin is likely to be at 21 percent in June quarter as against 21.8 percent in March quarter and 19.7 percent in a year ago period.

Emkay Equity Advisory on Dr Reddys Laboratories

Revenue is expected to grow by 25.1 percent on back of US business which will grow by 44 percent to USD 226 million in revenue led by Propecia, Reclast and Zenatane, Expect India and Russian business to grow by 12 percent and 15.2 percent respectively. We have assumed revenue growth of 31 percent Y-o-Y to Rs 7250 million in PSAI business with low base in Q1FY13.

Gross margins will be at 56 percent. Growth in EBITDA led by increased contribution from limited competition products. Margin will be at 21.0 percent. APAT will grow 27.6 percent to Rs. 4.5 billion.