Dr Reddy's shares falls over 6% on Thursday's trade following Q4FY23 results; check details | Mint
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Business News/ Markets / Stock Markets/  Dr Reddy's shares falls over 6% on Thursday's trade following Q4FY23 results; check details
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Dr Reddy's shares falls over 6% on Thursday's trade following Q4FY23 results; check details

Dr Reddy's Share Price: The stock slumped over 4% on Thursday's early trade. The company on Wednesday posted overall decent Q4FY23 numbers.

Dr Reddy's Q4FY23: The company's Q4 PAT jumped by 9.9 times or 889.79% from a profit of ₹97 crore in Q4FY23. However, sequentially, the PAT witnessed a decline as against ₹1,243.9 crore in Q3FY23.Premium
Dr Reddy's Q4FY23: The company's Q4 PAT jumped by 9.9 times or 889.79% from a profit of 97 crore in Q4FY23. However, sequentially, the PAT witnessed a decline as against 1,243.9 crore in Q3FY23.

Dr Reddy's share prices slump over 6% on Thursday's session. The stock fell over 4% today in early trade. The company on Wednesday posted overall decent Q4FY23 numbers, but however missed the street's estimates. Dr Reddy's shares opened at 4,675 per share on NSE.

The Hyderabad-based pharmaceutical company's earnings for the three months ending in March, as reported in its exchange statement, was 959 crore, largely due to its success in US generics. However, this contrasts with the 1,034 crore analyst consensus projection that Bloomberg analyses missing the estimates.

At 09:39 IST, the stock was down 5.44% at 264.80 apiece on NSE.

Revenue gained momentum year over year. On a quarter-over-quarter basis, the performance for Q4FY23 was poor across all important metrics. A hefty dividend of 800% has been issued by the company for its shareholders.

The pharmaceutical company had a significant increase in PAT in Q4FY23 of 10-folds or 996% from a profit of 87.5 crore in Q4FY22, while revenue increased by 16% to 6,296.8 crore from 5,436.8 crore in the same quarter of the previous year.

Dr. Reddy’s Q4FY23 results: Consolidated PAT at 959 cr, rises by 10-folds YoY; 800% dividend for shareholders

Due to the introduction of new items and favourable currency movements, US business increased by 26.8% year-on-year (YoY) to 2,532 crore, however price erosion also played a role. Europe's revenue increased by 11.6% YoY to 496 crore, fuelled by the introduction of new products and a rise in volumes, while price erosion and unfavourable exchange rates partially offset this growth.

Sales price increases and new product releases were the primary drivers of India's revenue growth, which increased by 32.5% YoY to 1283.4 crore. The growth rate was 9.5% after brand sales adjustments from the base year to the current year, though.

“While US growth was far ahead of our estimates, adjusted India growth was in line. Europe revenues were also higher than our estimates. Pharmaceutical services and active Ingredients witnessed growth due to favourable currency movements but were below our estimates. Quarterly fluctuations notwithstanding, the company continues to deliver within its determined framework. We remain positive on the company’s growth story based on simultaneous launches across major geographies and persistent recalibration of the existing portfolio," said ICICI Direct Research in its report.

On the technical front, analysts witness a strong gap down opening and follow up selling as prices are down more than 6%. According to them, this move is supported with spike in volume.

“As of now the prices may slip further lower with next support at 200sma at 4430. any bounce may face resistance around 4,700 - 4,750 levels," said an analyst.

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Published: 11 May 2023, 09:19 AM IST
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