Dr Reddy’s Laboratories shares plunged over 4 per cent after the company reported 76 per cent fall in net profit at Rs 153.50 crore for the quarter ended June 30, 2016 against Rs 647.40 crore in the corresponding quarter a year ago. Bottomline of the company affected due to stiff competition in the US markets.
Net income from operations of the pharma major slid 14.11 per cent to Rs 3222.50 crore against Rs 3752.20 crore in the same quarter last year.
Shares of Dr Reddy’s Laboratories closed 4.37 per cent down at Rs 3322.85. The scrip opened the day at Rs 3,490 and has touched a high and low of Rs 3,490 and Rs 3,516.95, respectively, in trade so far. Sensex settled 118 points down at 27,976.
ICICI Securities was expecting net profit of Rs 452.40 crore from Dr Reddy’s Labs for April-June period.
Sarabjit Kour Nangra, VP-research, pharma, Angel Broking said, “For 1QFY2017, the company posted bad numbers. Sales growth of company was under pressure on back of muted de-growth in all its major markets. The Generic (Rs 2663.8 cr), a YoY de-growth of 14 per cent, lead by USA, Europe and emerging markets, which posted de-growth of 16 per cent, 16 per cent and 26 per cent respectively. We maintained our ‘Neutral’ rating on the stock post Q1 result.”