Dr. Reddy's Laboratories forms a fully-owned subsidiary in Jamaica, the stock increases by 2%

29 Sep 2023 , 12:20 PM

After the establishment of a step-down fully owned subsidiary on September 29, Dr. Reddy’s Laboratories’ stock price increased by almost 2.14% in early trading.

Dr. Reddy’s stock was up 2.14% to Rs 5545.50 at 10:24 a.m. on the NSE.

The Dr. Reddy’s Laboratories Switzerland division has established ‘Dr. Reddy’s Laboratories Jamaica Limited’ as a fully-owned subsidiary in Jamaica. Dr. Reddy’s Laboratories Jamaica Limited is a step-down wholly owned subsidiary of the business as a result. According to a BSE notification dated September 28, it will be involved in the importing, warehousing, distribution, and exportation of pharmaceuticals.

Despite starting from a high base of Rs 1,187.6 crore during the same period a year earlier, pharmaceutical giant Dr. Reddy’s Laboratories reported on July 26 an 18.1% increase in net profit at Rs 1,402.5 crore for the quarter that ended June 30, 2023. The business recorded a one-time gain of $72 million in the first quarter due to a patent settlement for the generic medicine Suboxone it had obtained from the British pharmaceutical company Indivor.

Additionally, the net profit exceeded the Street’s prediction of Rs 944.1 crore. In comparison to the same time last year, the drugmaker’s revenue increased by 29.2% to Rs 6,738.4 crore from Rs 5,215.40 crore.  The market estimated the company’s revenue for the examined quarter at Rs 6,458 crore.

In comparison to the last corresponding quarter’s EBITDA of Rs 1,779 crore, the business reported an EBITDA of Rs 2,137.2 crore for the quarter. EBITDA margin for April through June was 31.7%, down from 34.1% in the same period last year. Research and development (R&D) costs were Rs 498.4 crore, or 7.4% of total revenues for the quarter.

For feedback and suggestions, write to us at [e-mail]