Dr Reddy's Second-quarter Profit Beats Estimates, Shares Rise
The company's net profit dropped marginally to Rs 3.05 billion, versus Rs 3.09 billion a year ago, but the number beat analysts' average estimate of Rs 2.88 billion
Dr. Reddy's Laboratories posted a better-than-expected second-quarter net profit on Tuesday, helped by higher revenue from its European business, driving shares of the drugmaker up to a one-month high.
Revenue from the company's European global generics business rose more than 36 percent from a year ago to Rs 2.42 billion ($37.35 million), the Indian drugmaker said in a statement.
The company's net profit dropped marginally to Rs 3.05 billion, versus Rs 3.09 billion a year ago, but the number beat analysts' average estimate of Rs 2.88 billion, Thomson Reuters data shows.
Revenue from the company's global generics business in North America fell 11 per cent to Rs 14.32 billion as consolidation among drug distributors in the region continued to erode the ability of export-driven Indian drugmakers to negotiate prices.
Compounding their woes was US regulatory scrutiny of foreign manufacturing sites that has led to bans on many plants over quality control issues.
Dr. Reddy's shares rose almost 3 per cent to their highest in more than a month in a broader Mumbai market that was trading down 0.2 per cent.