Dr Reddys Labs Q2 PAT seen up 39% at Rs 486cr: MOST
According to Motilal Oswal, Sales of Dr Reddys Laboratories are expected to increase by 20.5 percent Q-o-Q (up 20.8 percent Y-o-Y) to Rs 3,361.5 crore.
October 31, 2013 / 10:48 IST
Motilal Oswal has come out with its second quarter (July-September) earnings estimates for the healthcare sector. The brokerage house expects Dr Reddys Laboratories to report a 48.4 percent growth quarter-on-quarter (up 39.3 percent Y-o-Y) in net profit at Rs 485.9 crore.
Sales of Dr Reddys Laboratories are expected to increase by 20.5 percent Q-o-Q (up 20.8 percent Y-o-Y) to Rs 3,361.5 crore, according to Motilal Oswal.Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 54.4 percent Q-o-Q (up 24.2 percent Y-o-Y) to Rs 773.2 crore.Motilal Oswal's Report on Dr Reddys Laboratories:The broking firm expect Dr Reddy's Laboratories (DRRD) to post 17 percent Y-o-Y growth in revenue (no one-off this quarter) for 2QFY14 to INR 33.61 billion. Growth in core sales will be 21 percent Y-o-Y.Growth would be led by 43 percent Y-o-Y growth in core US revenue and 24 percent Y-o-Y growth in the Russia/CIS. Domestic formulations would grow 4 percent Y-o-Y, while PSAI would grow 9 percent Y-o-Y. Reported sales growth, adjusted for Geodon contribution in 2QFY13, would be 17 percent.Core EBITDA would grow 24 percent Y-o-Y to INR 7.73 billion, driven by improving product mix in the US business and strong growth in Russia. We expect core EBITDA margin to expand by 60bp Y-o-Y. EBITDA growth on reported basis would be 12 percent Y-o-Y.Adjusted PAT would be INR 4.86 billion, up 39 percent Y-o-Y - higher than the growth in EBITDA due to lower amortization and tax expense. We expect reported PAT (incl. one-off contributions) to grow 19 percent Y-o-Y.While there is uncertainty revolving around timely FDA approvals, recently launched limited competition products like gDacogen, gReclast injections and pipeline of 65 pending ANDAs will support growth in the US over the medium term.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!
