The scrip traded 2.09 per cent higher at Rs 4,135 at around 11.30 am (IST), while the benchmark BSE Sensex was down 0.26 per cent at 38,391.
Brokerage Emkay Global Financial Services sees 26 per cent year-on-year (YoY) drop in net profit of Dr Reddy’s Labs on 8.1 per cent growth in revenue.
“Sales growth will be led by EU with the launch of injectable products in new markets and low API base last year. India/US will see a decline due to Rx decline across the industry,” Emkay said.
On the other hand, Sharekhan sees 28.60 per cent drop in net profit of the pharma major on 6.50 per cent growth in topline in Q1FY21.
The brokerage believes that steady performance in domestic formulations and the US will result in a mid single-digit revenue growth.
“Profit after tax to fall due to the effect of a high other income in the corresponding quarter of the previous year. On the other hand, cost savings and better revenue performance to expand operating profit margins by 167.60 basis points YoY,” the brokerage said.