Dr Reddys Laboratories Ltd's Q1FY20 consolidated net profit rises 42% yoy to Rs677cr: Beats Estimates

The company’s consolidated revenue stood at Rs3,858cr, up 3.3% yoy but down 4.3% qoq.

July 29, 2019 4:46 IST | India Infoline Research Team

Dr Reddys Laboratories Ltd Q1FY20

Consolidated Results Q1FY20: (Rs. in cr)

Q1FY20 YoY (%)
Revenue 3,858.20 3.3
EBITDA 741.70 [3.5]
EBITDA Margin (%) 19.2 [135]
Net Profit (adjusted) 676.50 42.1
***EBITDA margin change is bps

Dr. Reddy’s reported numbers for Q1FY20 were below expectations on revenue and EBITDA fronts, but ahead on the PAT front. The company reported revenue growth of 3.3% yoy to Rs3,858cr, lower than median consensus estimates of Rs3,994cr. EBITDA declined by 3.5% yoy to Rs742cr, lower than median estimates of Rs811cr. EBITDA margin stood at 19.2%, indicating a 135bps contraction on yoy basis. The company reported PAT of Rs677cr, 42% yoy growth against estimates of Rs437cr.

Other highlights
  • Revenue mix: For the quarter, revenue contribution from Global generics stood at 82.6% (78.9% in Q1FY19), Pharmaceutical Services and Active Ingredients (PSAI) at 15.1% (18.1% in Q1FY19).
  • Global Generics: Revenue from Europe, India and North America were up 19%, 15%, and 3% yoy, respectively. Emerging markets reported 10% yoy growth for the quarter.
  • Global generics grew by 7.7% yoy.
  • PSAI reported 13.8% yoy revenue decline for the quarter,
  • PAT was aided by higher other income of Rs430cr vs. Rs50cr in Q1FY19.

Technical View:

Dr Reddys Laboratories Ltd ended at Rs. 2,652.55, down by 51.9 points or 1.92% from its previous closing of Rs. 2,704.45 on the BSE.
The scrip opened at Rs. 2,720 and touched a high and low of Rs. 2,725 and Rs. 2,623 respectively. A total of 9,57,980 (NSE+BSE) shares were traded on the counter. The stock traded below its 200 DMA.

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