34% domestic formulation growth drives Dr. Reddy's performance
Dr. Reddy's Laboratories has reported an impressive performance for FY 2000 with topline growth of 15.7% and bottomline growth of 16.7%
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
What has been creditable about Dr. Reddys topline performance is the growth in the domestic finished dosages by 34% when the formulation market has hardly grown by 9%. These have been led by a 25% growth in Omez (the company's anti–ulcer drug), a 28% growth in Nise (anti–pain) and a 49% growth in Ciprolet (anti–infectives). These three brands contributed 40% to the total turnover of the company. Cirprolet's success is particularly noteworthy since the anti–infectives market has grown by hardly 4%. The company's newer products Reclide (the company's anti–diabetes brand) and Stamlo Beta (cardiovascular drug) have also done well.
Division wise performance (Rs m)
CIS & Central Europe
The stock quotes at a price of Rs 1384, an earnings multiple of 60 times, which is the highest multiple that the company has enjoyed over the past three years.
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