Dr Reddy's Net Profit Falls 76%. Company Declares 600% Dividend

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  
  • Home
  • Views On News
  • May 19, 2022 - Dr Reddy's Net Profit Falls 76%. Company Declares 600% Dividend

Dr Reddy's Net Profit Falls 76%. Company Declares 600% Dividend

May 19, 2022

Pharma major Dr Reddy's Lab today reported its March quarter results during market hours.

Concerns regarding cost pressures were mounting for the past couple of months, so investors were keen to know how the pharma company's profit margins were impacted.

Dr Reddy's has a huge exposure to Russia, and CIS regions. The company has the highest export exposure to these regions, among domestic drugmakers.

Though the company doesn't have any manufacturing plant in Russia, it has had a presence in the region for over three decades. Revenue from Russia accounts for about 8-10% of the company's total revenue.

Here are four key takeaways from Dr Reddy's March quarter results.

  • Dr Reddy's consolidated net profit for the quarter ended March 2022 dropped to Rs 875 m, compared with Rs 3.6 bn in the same quarter last year. This translates into a 75.6% drop.
  • The company's revenues rose to Rs 54.4 bn, a growth of 15% YoY and 2% on a sequential basis.
  • During the quarter, there were significant changes to the market conditions of the products forming part of Dr Reddy's generics and proprietary products segments.

    The changes include decrease in the market potential of products, increased competition leading to lower volumes, and revenues not being in line with projections.
  • Dr Reddy's board recommended a final dividend of Rs 30 per share (600% on face value).

Dr Reddy's Lab share price opened the day at Rs 3,850 against its previous close of Rs 3,908.

As soon as it declared results, shares saw a sudden spike and rose over 1% to Rs 3,949.

Interestingly, Dr Reddy's Lab and ITC were the only gainers today from the pack of BSE 30 stocks. Even as stock markets continue to fall, both these stocks traded in green.

The reason behind ITC's outperformance is that ITC's results beat estimates, which sent the stock to its 52-week high.

Coming back to Dr Reddy's performance...

So far this year, shares of Dr Reddy's Lab have underperformed the markets and have lost over 25%.


About Dr Reddy's Lab

Dr Reddy's Lab is a leading India-based pharmaceutical company headquartered and having its registered office in Hyderabad, Telangana, India.

The company has key presence is in India, North America, Russia and CIS countries, Europe and other emerging markets. The company has wide portfolio in several markets and has made several niche and Para IV launches.

For more details about the company, you can have a look at Dr Reddy's fact sheet and Dr Reddy's quarterly results on our website.

For a sector overview, you can read our pharma sector report.

You can also compare Dr Reddy's Lab with its peers on our website.

Dr Reddy's Lab vs Aurobindo Pharma

Dr Reddy's Lab vs Cipla

Dr Reddy's Lab vs Sun Pharma

Dr Reddy's Lab vs Abbott India

Dr Reddy's Lab vs Divi's Lab

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...

Yellow Ad

Advertisement

Last Day to Access 'One Stock Crorepati' Opportunity

As you know, recently we went LIVE with our One Stock Crorepati MEGA Summit...

Around 10,000 readers like you had registered to attend this summit.

At the summit, they learned Richa Agarwal's secret blueprint of identifying potential 'crorepati' stocks.

Plus, they also discovered the details of one stock with crorepati potential...

If you missed this summit for some reason, then you can still get all the details by watching this special replay of the summit.

Learn more

Equitymaster requests your view! Post a comment on "Dr Reddy's Net Profit Falls 76%. Company Declares 600% Dividend". Click here!

  

More Views on News

Sun Pharma vs Dr Reddy's: Which is Better? (Views On News)

Dec 16, 2021

In an extremely competitive market, two pharma companies are competing against each other to grab the top spot.

5 Indian Pharma Companies Riding the Vaccination Wave (Views On News)

Sep 3, 2021

These companies are likely to benefit the most from Covid-19 vaccines.

Pharma Company to Issue Bonus Shares this Week. Are you Eligible? (Views On News)

Jul 4, 2022

The company has also announced a final dividend of Rs 23 per equity share recently.

5 Takeaways from Sun Pharma's Q4 Results (Views On News)

May 30, 2022

It came as a surprise to everyone when Sun Pharma reported a consolidated net loss in Q4 instead of a profit.

Why Divi's Lab Share Price is Falling (Views On News)

May 24, 2022

Here's why Divi's Lab's stock fell over 10% in two days.

More Views on News

Most Popular

The One Smallcap Stock I'll Recommend Now (Profit Hunter)

Jun 21, 2022

This aspect of investing has a very high weightage on your overall returns, but often gets ignored when winning stories are written.

5 Consistent Compounding Stocks Available at Discount. Time to Buy? (Views On News)

Jun 22, 2022

The good side of a market correction? Investors get consistent compounding stocks at a discount.

Auto Stocks are in the Fast Lane. Is it Time to Buy? (Profit Hunter)

Jun 23, 2022

The auto index is outperforming the Nifty by a mile. Have auto stocks finally bottomed out?

5 Indian Companies where Mutual Fund Holdings are Consistently Increasing (Views On News)

Jul 1, 2022

Mutual funds are buying shares at a time when FIIs are consistently selling. Here are 5 stocks where MF holdings has increased for the past 4 quarters.

Why Crude Oil Price is Falling (Views On News)

Jun 25, 2022

Global markets have become volatile, sending chills through the crude oil market.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

DR. REDDYS LAB SHARE PRICE


Jul 4, 2022 (Close)

TRACK DR. REDDYS LAB

  • Track your investment in DR. REDDYS LAB with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

DR. REDDYS LAB - TEVA PHARMA COMPARISON

COMPARE DR. REDDYS LAB WITH

MARKET STATS