Dr. Reddy's Laboratories shares fall over 6% post subdued Q3 show; analysts divided

Dr. Reddy's Laboratories shares successful Friday's commercialized slipped by implicit 6 per cent successful aboriginal commercialized to the day's debased terms of Rs 1,203.6 aft the pharma large posted anemic show during the December quarter. The slump came pursuing the steep simplification successful the company's gross margins by arsenic overmuch arsenic 160 ground points quarter-on-quarter. 

Additionally, the company's absorption pointed retired at the expanding pricing pressure related to the apical US products. Also, revenues successful the US took a deed sequentially connected the backmost of rising contention and higher income expenses. 

Dr. Reddy's Q3FY25 effect highlights

For the reporting quarter, the company's consolidated nett grew 2.4 per cent year-on-year (YoY) to Rs 1,413.7 crore, successful examination to Rs 1,381 crore successful the aforesaid play of the erstwhile twelvemonth connected the backmost of its precocious acquired NRT portfolio arsenic good arsenic robust show successful European and EMs. Revenue besides gained 16 per cent on-year to Rs 8,381.2 crore versus Rs 7,236.8 crore during Q3FY24.

On the operational front, the Hyderabad-based pharma elephantine reported Rs 2,298 crore successful EBITDA, up 8.9 per cent on-year. EBITDA margin, however, declined to 27.5 per cent from 29.3 per cent.

Following the company's subdued Q3 earnings, Dr. Reddy's ADR oregon American Depository Receipts besides slipped implicit 6 per cent. 

What planetary brokerages marque of Dr. Reddy's Q3 earnings

Global brokerage Jefferies has continued with its erstwhile 'underperform' telephone connected the institution with the people slashed to Rs 1,170 from the earlier Rs 1,210. It highlighted that weakness successful halfway profitability shows up. Also, it underlined the company's anemic US and core India sales, unneurotic with beardown show successful Russia and UK.

Also it cut FY26-27 EPS targets by 3-6 per cent.