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Dr Reddy's likely to report 49% rise in profit, margin may remain flat
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Dr Reddy's likely to report 49% rise in profit, margin may remain flat
Jul 28, 2022 1:33 AM

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.

Also Read: Biocon posts Q1 net profit of Rs 144.4 crore, misses estimates

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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