Dr Reddy’s profitability takes a dip in Q4
While sales growth was decent, and even better than some analyst estimates, gross margins were hit by currency volatility and inventory write-offs
The Dr Reddy’s Laboratories Ltd stock has been falling, and has lost 11.5% in its value in a month. On Tuesday, however, its results cheered investors and its share gained by 3.08%, in contrast to the broader market fall of 2.3% and a 0.7% decline in healthcare stocks. Currency volatility in emerging markets and a slow pace of generic drug approvals in the US market are the main concerns for investors in pharmaceutical companies selling generic drugs.