Dr Reddys Laboratories Ltd's Q4FY19 consolidated net profit rises 67.4% yoy to Rs455.4cr : Beats Estimates

The company’s consolidated revenue stood at Rs4,029.6cr, up 13.4% yoy and 4.3% qoq.

May 17, 2019 10:05 IST India Infoline Research Team

Dr Reddys Laboratories Ltd Q4FY19

Consolidated Results Q4FY19: (Rs. in cr)

Q4FY19 YoY (%)
Revenue 4,029.6 13.4
EBITDA 818.9 45.3
EBITDA Margin (%) 20.3 446
Net Profit (reported) 455.4 67.4
***EBITDA margin change is bps
Dr. Reddy’s reported healthy set of numbers for the quarter, it was in-line on revenue and EBITDA fronts, but ahead on the PAT front. Company reported revenue growth of 13.4% yoy to Rs4,029.6cr, broadly in-line with consensus estimates. Due to lower selling and other expenses, EBITDA reported 45.3% yoy growth to Rs818.9cr, in-line with estimates. EBITDA margins stood at 20.3%, 446bps expansion on yoy basis. Led by strong EBITDA growth, company reported PAT of Rs455.4cr, 67.4% yoy growth and ~9% ahead of consensus estimates.

Other highlights
  • Revenue mix: Revenue contribution from Global generics stood at 75.6% (78.7% in Q4FY18), Pharmaceutical Services and Active Ingredients (PSAI) at 16.8% (17.7%) and Proprietary Products & Others at 7.5% (3.6%), for the quarter.
  • Global Generics: Revenue from Europe (primarily includes Germany and UK), India and North America were up 12%, 6% and 3% yoy respectively. Emerging markets, which includes Russia, other CIS countries, Romania and Rest of the World markets, reported 27% yoy growth for the quarter.
  • PSAI reported 8% yoy revenue growth for the quarter and revenue from Proprietary Products & Others jumped by 139% yoy.
  • Company’s focus continues on building complex generics, bio-similars and differentiated products pipeline. Thus, R&D expenses for the quarter stood at Rs370cr, 9.1% of net sales.

Technical View:

Dr Reddys Laboratories Ltd is currently trading at Rs. 2,748.10, down by 56.4 points or 2.01% from its previous closing of Rs. 2,804.50 on the BSE.
The scrip opened at Rs. 2,790 and has touched a high and low of Rs. 2,811.65 and Rs. 2,668.80 respectively. So far 12,17,920 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 50 DMA.

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