Dr Reddy’s Stock Tanks 7%, Worst Performer on Nifty50, Nifty Pharma Packs
By Malvika Gurung
Investing.com — Shares of the pharmaceutical giant Dr Reddy’s Laboratories (NS:) plunged 6.6% in Thursday’s session and hit an intraday low of Rs 4,545 apiece on May 11 despite a multifold jump in bottomline figure for the quarter ended March 31, 2023.
Dr Reddy’s Labs’ stock fell almost 7% in Thursday’s trade and was the worst performer on the benchmark index as well as . It is not listed on .
Even though the pharma company posted good results for the March-ended quarter on a year-on-year basis, it posted feeble figures on a sequential basis and failed to meet some of the Street’s estimates.
Dr Reddy’s Labs recorded a whopping 996% rally in consolidated net profit at Rs 959.2 crore on YoY basis in the March quarter from Rs 87.5 crore in the same period last year, however, missing Bloomberg’s consensus estimate of Rs 1,034 crore.
The company’s total revenue rose 16% YoY to Rs 6,297 crore from Rs 5,436 crore in the same quarter last year.
On a sequential basis, both PAT and revenue declined by 23% and 7% in the March quarter when compared to December 2022 quarterly numbers.
The pharma giant posted an EBITDA of Rs 1,631 crore, which accounted for 25.9% of revenue. The figure surged 26% on a YoY basis but dropped 17% QoQ.
The Hyderabad-based company’s Gross Margin expanded to 57.2% in Q4 FY23 from 52.9% in Q4 FY22, while contracting from 59.2% in the preceding quarter.