Dr Reddys Lab Q1 PAT seen up 17.1% at Rs 290.7 cr: MOST

Motilal Oswal 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 17.9 percent degrowth quarter-on-quarter (growth of 17.1 percent year-on-year) in net profit at Rs 290.7 crore.

Revenues are expected to decrease by 3.5 percent Q-o-Q (up 26.8 percent Y-o-Y) to Rs 2916.2 crore, according to Motilal Oswal.

Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 8.1 percent Q-o-Q (up 59.1 percent Y-o-Y) to Rs 597.8 crore.

EBITDA margin or operating profit margin is likely to be at 31.7 percent in June quarter as against 26.1 percent in March quarter and 21.7 percent in a year ago period.

Motilal Oswal on Dr Reddys Laboratories

We expect Dr. Reddys Laboratories to report strong growth of 59 percent in core EBITDA. This will be driven by increasing market share in recent product launches.

Growth will come over a low base of 1QFY13 when the company witnessed severe price erosion in the US and incurred high promotional spends for Russia market. Hence, core EBITDA margins will expand 420bp Y-o-Y to 20.5 percent from 16.3 percent in 1QFY13.