Dr Reddy's Laboratories (DRL) will report its first-quarter earnings on Monday and analysts expect the drugmaker to report a good set of numbers this time around.
- For DRL, it is going to be an interesting set of numbers. The revenue growth is expected to be around 10 percent, margins may come in at around 20 percent, which compares to 21.7 percent on a year-on-year (YoY) basis.
- If the margins are above 21 percent this quarter as well, it will be the fourth consecutive quarter that the company will be reporting margins of above 20 percent.
- In terms of the expectations, watch for divestment income, which is from three proprietary assets that they had sold during the quarter. So around $70 million upfront plus there was an agreement or settlement, which was signed with Syngene for a drug called Revlimid during the quarter. So that should probably add to numbers as well.
- Additionally, for the US markets, there will be a whole clutch of stocks which would add to their numbers.
- For India, the street will be watching out for any sort of pick up, 8-12 percent is what the estimate is along with similar growth rates for Russia, Europe as well as rest of the world.