Dr Reddy’s Q2 PAT seen at Rs 370 crore

MUMBAI: Dr Reddy’s Laboratories is likely to report a net profit of Rs 370 crore for the September 2012 quarter, up 20 per cent, from a net profit of Rs 308 crore in the corresponding quarter last fiscal.

Net sales are seen at Rs 2,750 crore, up 21 per cent, as compared to Rs 2268 crore during the year ago period.

EBITDA is seen at Rs 552 crore, up 14 per cent, against Rs 483 crore in the same quarter a year ago. Margins are seen at 20.1 per cent vs 21.3 per cent.

According to analysts, the US markets will be key growth driver and may show 22 – 25 per cent growth in the second quarter. The India formulation business may show 10-12 per cent growth. PSAI segment growth is seen at 12–15 per cent.

Russian markets are likely to see a growth on OTC pickup. Contribution from Geodon, Zyprexa is likely to aid topline for the company.

Higher raw material costs, increase in other expenses are expected to impact margins. Pricing pressure in the US is likely to dent the margins as well.

The poll suggests that higher tax rates and forex loss due to hedges are likely to hit profits.

Investors should watch out for update on revenue guidance of $2.5-2.7 billion.