HomeEarnings NewsHere's what experts make of Dr Reddys' Q2FY20 earnings

Here's what experts make of Dr Reddys' Q2FY20 earnings

Dr Reddy's Laboratories Ltd (DRL) reported a net profit at Rs 1,093 crore versus a CNBC-TV18 poll of Rs 723.3 crore/ The revenue came in at Rs 4,801 crore versus CNBC-TV18 poll of Rs 4,107 crore. Nimish Mehta of Research Delta Advisor and Kunal Dhamesha, research analyst at SBICAP Securities helped decode DRL's Q2 performance.

Profile image

By CNBC-TV18 November 1, 2019, 1:56:40 PM IST (Published)

Here's what experts make of Dr Reddys' Q2FY20 earnings
Dr Reddy's Laboratories Ltd (DRL) reported a net profit at Rs 1,093 crore versus a CNBC-TV18 poll of Rs 723.3 crore. The revenue came in at Rs 4,801 crore versus CNBC-TV18 poll of Rs 4,107 crore. Nimish Mehta of Research Delta Advisor and Kunal Dhamesha, research analyst at SBICAP Securities helped decode DRL's Q2 performance.


“We were expecting some smaller but high margin approvals that would have driven profit this quarter but there is even more than what we expected. So it’s a beat,” said Mehta.

Speaking about geographical growth, Dhamesha said, “Europe is not important geography for them but overall the beat is driven by the proprietary product revenue of USD 70 million – that’s the out-licensing revenue that has been recognized in this quarter.”

“Besides that if I remove that or if I look at the global generic segment gross margin, they are coming at 55.5 percent which is on the higher end of the management credence of 53-55 percent. So overall core performance is also good and that’s aided by USD 70 million out-licensing payment,” he added.

Talking further about other geographies, he said, “North America business declined 13 percent QoQ and that’s because of price erosion because they did not have any significant launches for Q2. Most of the significant launches would start coming in Q3 and Q4.”
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!