Dr Reddys Labs Q2 net seen up 74% at Rs 710cr: P Lilladher
According to Prabhudas Lilladher, sales of Dr Reddys Laboratories are expected to increase by 18.3 percent Q-o-Q (up 16.8 percent Y-o-Y) to Rs 3,366.1 crore.
October 31, 2013 / 09:11 IST
Prabhudas Lilladher has come out with its second quarter (July-September) earnings estimates for the pharmaceutical sector. The brokerage house expects Dr Reddys Laboratories to report a 96.6 percent growth quarter-on-quarter (up 74.2 percent Y-o-Y) in net profit at Rs 709.6 crore.
Sales of Dr Reddys Laboratories are expected to increase by 18.3 percent Q-o-Q (up 16.8 percent Y-o-Y) to Rs 3,366.1 crore, according to Prabhudas Lilladher.Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 91.7 percent Q-o-Q (up 50.1 percent Y-o-Y) to Rs 1,036.7 crore.EBITDA margin or operating profit margin is likely to be at 30.8 percent in September quarter as against 19 percent in June quarter and 24 percent in a year ago period.Prabhudas Lilladher's Report on Dr Reddys Laboratories:With new approvals, favourable currency and limited competition drugs, US generics would help in 17 percent Y-o-Y growth of Dr Reddys Lab in Q2FY14E despite strong sales of Propecia in Q2FY13.Lower growth in domestic formulations and PSAI business, however, continues to be a hangover to its valuation. Among its laggard business verticals, custom service and Naproxen APIs are gradually ramping up with increase in order books from major clients across geographies.This, along with approvals in Visaza, Decitabine, Reclast, Donepezil 23mg, Lamictal will help to augment core EBITDA margins by 682bps Y-o-Y to 31 percent in Q2FY14E.Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
