Dr Reddy’s Q2 numbers in line with estimates

Despite the Covid-19 challenge, the India growth is driven by a better traction in the chronic portfolio and the acquired Wockhardt portfolio, says Nikhil Shetty, Research Analyst, BP Equities.

What do you make of Dr Reddy’s numbers?
The overall numbers are in line with our estimates. Last year, there was a one-time revenue of around Rs 720 crore from sale of the neurology brand product. Coming to the US number, we believe it is 5% above our estimate and the US market is mainly driven by the improvement in the base business and product launches such as Ciprodex and Tecfidera.

These new products would help Dr Reddy’s gain a decent momentum in the US market. Coming to the India market, despite the Covid-19 challenge, the India growth is driven by a better traction in the chronic portfolio and the full quarter benefit from the acquired Wockhardt portfolio. Prima facie, it seems like a decent set of numbers this quarter on revenue, EBITDA and profitability front.