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 ChangeYoY Change
Net SalesRs m33,33235,53937,3655.1%12.1%
Other incomeRs m38044950412.2%32.6%
TurnoverRs m33,71235,98837,8695.2%12.3%
ExpensesRs m30,10029,90329,677-0.8%-1.4%
Gross profitRs m3,3305,7057,77136.2%133.4%
DepreciationRs m2,5922,7632,7870.9%7.5%
InterestRs m2151781959.6%-9.3%
Profit before taxRs m9033,2135,29364.7%486.2%
TaxRs m2374925328.1%124.5%
Profit after taxRs m6662,7214,76175.0%614.9%
Gross profit margin%10.016.120.8
Effective tax rate%26.215.310.1
Net profit margin%2.07.612.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster


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.