Leading pharmaceuticals major Dr Reddy’s Laboratories on Saturday announced a drop of 0.8% year-on-year (YoY) in its consolidated profit after tax at Rs 1392 crore for the quarter ended June 30, 2024 (Q1FY25) compared to the net profit of Rs 1403 crore declared in the corresponding quarter of last yearGuoabong Investment. The company also approved stock split/sub-division of shares in the proportion of 1:5 implying 1 share will be sub-divided into 5 new shares. The pharma company has yet to announce the record date for stock split. Last trading price of Dr Reddy’s shares on BSE is Rs 6892.15 per share. Dr Reddy’s Laboratories shares zoomed 13.57% in last 1-month and gained 25.85% in last 1-year.
The company’s market capitalisation stood at Rs 1,14,976.15 crore. It is worth mentioning here that Life Insurance Corporation Of India P & Gs Fund has 5.52% stake in Dr Reddy’s Laboratories with 9,210,387 shares of the company. More details below:
Dr Reddy’s Approves Stock Split: As per the BSE filing of Dr Reddy’s Laboratories issued as on July 27, 2024, “sub-division/ split of each equity share of the Company having face value of Rs.5/- (Rupees five only) each, fully paid-up, into 5 (Five) equity shares having face value of Re.1/- (Rupee one only) each, fully paid-up, by alteration of the Capital Clause of the Memorandum of Association of the CompanyJaipur Wealth Management. Further, each American Depositary Share (ADS) of the Company will continue to represent 1 (One) underlying equity share as at present and therefore, the number of ADSs held by an American Depositary Receipt holder would consequently increase in proportion to the increase in number of equity shares. The subdivision/ split will be subject to approval of the members of the Company through postal ballot process. The record date for the said sub-division/ split will be intimated in due course.
Dr Reddy’s Laboratories Q1 Results: The Hyderabad-based drugmaker announced a surge of 14% in its revenue to Rs 7673 crore as against Rs 6738 crore declared in the similar quarter of last year. Sequentially, Dr Reddy’s declared a growth of 8.18% in its revenue and 6.31% in PAT. Commenting on the results, Co-Chairman & MD, G V Prasad said: “We had a good start to the new financial year and our growth & profitability were mainly driven by our generics business. We continue to strengthen our core businesses and have made strategic investments in biologics, consumer healthcare and innovation to drive patient impact and value creation.”
Global Generics (GC) business, mainly in North America and India, chiefly drove growth for Dr Reddy’s Laboratories. GG contributed largely to the overall growth, with revenues touching Rs 6,890 crore. The business registered a 15% Y-o-Y and 13% Q-o-Q revenue growth, mainly due to higher sales volumes pushed by new product launches and the integration of the recently acquired vaccine portfolio in India. However, this growth was partially offset by pricing pressures.
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