Dr Reddy's Laboratories is all set to report its quarterly financial results on Thursday. The Hyderabad-based drug maker is likely to report a 49 percent year-on-year growth in profit for the April-June period. A CNBC-TV18 poll estimates the company’s profit to stand at Rs 852.5 crore for the first quarter against Rs 570.8 crore in the year-ago period.
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In the previous quarter, the company's revenue, margin, and US and India growth numbers were a beat. Investors will keep an eye on the respective numbers this quarter. The focus will be on the growth in Russia. The company had recorded a year-on-year increase of 70 percent in the previous quarter.
The firm is likely to report revenue at Rs 5,346.5 crore, a rise of 9 percent year-on-year from Rs 4,919.4 crore. Margin — a key measure of profitability indicating the gap between revenue and expenses — is expected to remain flat at 21 percent compared to 20.7 percent in the same period last financial year.
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Analysts in the poll expect the earnings before interest, taxes, depreciation, and amortisation (EBITDA) at Rs 1,122 crore, up from Rs 1,019 in the year-ago period.
This quarter, the drug maker’s US business will likely remain flat quarter-on-quarter as price erosion offsets gains from launches. US sales are estimated to be around $257-265 million, largely unchanged from $263 million in the previous quarter.
Domestic growth is likely to be subdued due to a high base, and quarter-on-quarter estimates suggest a single-digit growth.
On Wednesday, the stock ended 1.75 percent higher at Rs 4,285.35.
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