Dr Reddy’s Dips 7% Even as Q4 Net Profit Jumps 10-Fold; Should you Buy, Sell or Hold?
Last Updated: May 11, 2023, 13:41 IST
Shares of Dr Reddy’s slipped 7 per cent in early trade on May 11
Shares of Dr Reddy’s slipped 7 per cent in early trade on May 11, a day after the company posted its Q4 results
Shares of Dr Reddy’s Laboratories slipped 7 per cent in early trade on May 11, a day after the company posted its Q4 results. The drugmaker’s net profit for the quarter jumped 10-fold to Rs 959.2 crore from Rs 87.5 crore in the same period last year but still lagged the Street’s estimate of Rs 1,093.6 crore.
Its revenue from operations stood at Rs 5,843 crore in Q4 FY23, up 15.28% YoY as against Rs 5,068.4 crore in Q4 FY22. Meanwhile, total expenses were down 4 per cent at Rs 5,132.2 crore against Rs 5,348.4 crore in Q4FY22.
Revenue came in at Rs 6,296.8 crore, 15.81 per cent up from Rs 5,436.8 crore in the year-ago quarter. The topline beat the Street’s expectation of Rs 6,090.5 crore for the quarter under review.
EBIDTA margin also expanded to 25.9 percent in January-March from 23.9 per cent in the same quarter last year.
“Dr Reddys’ reported an all round miss vs our expectation as US revenues declined 17% QoQ and margin stood at 25 per cent. Management commentary reaffirmed growth in US business though we sense it may be difficult to grow on a Revlimid base in FY25 and beyond,” YES Securities said.