About the Company:
Dr. Reddy's Laboratories is an Indian global pharmaceutical company based in Hyderabad, Telangana, India. Dr. Reddy's manufactures and markets a wide range of pharmaceuticals in India and overseas.
QoQ & YoY Performance:
India’s leading Pharma Company has declared the results for the second quarter of the fiscal year ending March 2020.
- QoQ Performance: Consolidated Net sales/ revenue of the company recorded to Rs.4812.8 crores, climbed by 24.74% in the September quarter of FY20. Total expenditure (excluding interest and depreciation expenses) are Rs. 3858.2 crores, increased by 20.30%. EBITDA numbers slipped by 4%.
- YoY Performance: The Company has reported 63.61% increase in sales/revenue while expenditure (excluding interest and depreciation expenses) of the company have witnessed a jump of 22.59%. EBITDA numbers up by 25.95%.
- Profitability of the company: Net profits of the company landed to Rs. 1106.8 crores, surged by 63.61% QoQ and climbed by 113.54% YoY.
- Geographical Revenue: Growth in the global generics business was led by India and Emerging Markets, which grew by 9% and 10%, to Rs 751.1 crore and Rs 827.6 crore, respectively, in September quarter 2019.
As per Lokesh Sethia, SEBI Registered Research Analyst, the stock was closed at Rs. 2,750 per share. The major pharmaceutical service and active ingredient manufacturing firm posted healthy growth across the board. However, pharma outlook in near term is witnessing rising in demand of API, which makes the stock is more attractive. Hence, we recommend it to “BUY” for the target of 3,212.75 levels for long-term horizon.