DR. REDDYS LAB Announces Quarterly Results (1QFY19); Net Profit Up 614.9%

Fri, 27 Jul

DR. REDDYS LAB has announced its results for the quarter ended June 2018. Here is a detailed performance review of the same:

DR. REDDYS LAB Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-17*	3 Mar-18*	3 Jun-18*	QoQ Change	YoY Change
Net Sales	Rs m	33,332	35,539	37,365	5.1%	12.1%
Other income	Rs m	380	449	504	12.2%	32.6%
Turnover	Rs m	33,712	35,988	37,869	5.2%	12.3%
Expenses	Rs m	30,100	29,903	29,677	-0.8%	-1.4%
Gross profit	Rs m	3,330	5,705	7,771	36.2%	133.4%
Depreciation	Rs m	2,592	2,763	2,787	0.9%	7.5%
Interest	Rs m	215	178	195	9.6%	-9.3%
Profit before tax	Rs m	903	3,213	5,293	64.7%	486.2%
Tax	Rs m	237	492	532	8.1%	124.5%
Profit after tax	Rs m	666	2,721	4,761	75.0%	614.9%
Gross profit margin	%	10.0	16.1	20.8
Effective tax rate	%	26.2	15.3	10.1
Net profit margin	%	2.0	7.6	12.6

Year-on-Year Performance:

• The company's operating income during the quarter grew 12.1% on a year-on-year (YoY) basis. The expenses were down by 1.4% YoY during the same period.
• The company's operating profit increased by 133.4% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 20.8% in 1QFY19 as against 10.0% in 1QFY18.
• Depreciation charges and finance costs increased by 7.5% YoY and 9.3% YoY, respectively.
• Other income increased by 32.6% YoY during the quarter.
• Net profit for the quarter increased by 614.9% YoY. Net profit margins during the quarter increased from 2.0% in 1QFY18 to 12.6% in 1QFY19.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 5.1% on a quarter-on-quarter (QoQ) basis. The expenses were down by 0.8% QoQ during the same period.
• The company's operating profit increased by 36.2% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 20.8% in 1QFY19 as against 16.1% in 4QFY18.
• Net profit for the quarter increased by 75.0% QoQ, while net profit margins increased from 7.6% in 4QFY18 to 12.6% in 1QFY19.

To see how DR. REDDYS LAB has performed over the last eight quarters, please visit here.

DR. REDDYS LAB Share Price Performance

Over the last one year, DR. REDDYS LAB share price has moved up from Rs 2,621.5 to Rs 2,085.1, registering a Loss of Rs 536.4 or around 20.5%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 14,056.0 (up 0.7%). Over the last one year it has moved down from 14,668.6 to 14,056.0, a gain of 613 points (down 4.2%).

Overall, the S&P BSE SENSEX is up 0.8% over the year.

Current Valuations

At the current price of Rs 2,085.1, the price to earnings (P/E) ratio of DR. REDDYS LAB stands at 25.6 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 2.7 times.