Dr. Reddy's shares jump on strong Q2 results

Dr. Reddy's shares jump on strong Q2 results Shares in pharmaceutical giant Dr Reddy's Laboratories Ltd gained more than 3 per cent on Wednesday, a day after the company announced strong trading figures for the three months ended September 30.

In the morning trading today, the drug maker's shares gained as much as 3.2 per cent to Rs 1763.30. At one point of time, the stock hit a low of Rs 1732.

On Tuesday, following the announcement of the quarterly results, shares in Dr Reddy's Laboratories gained 2 per cent to Rs. 1,731.70 on the National Stock Exchange (NSE), while the broader Nifty reported a decline of 1 per cent at 5,605.

Yesterday, the company announced a better-than-expected increase of 32.37 per cent in consolidated net profit to Rs 4.07 billion for the second quarter of current fiscal year. Analysts had projected consolidated net profit of Rs 3.65 billion for the drug maker.

Total consolidated income jumped 27.03 per cent to Rs 28.81 billion, as compared with income of Rs 22.68 billion in the corresponding period of previous year.

Announcing the results, Dr Reddy's global generics head Abhijit Mukherjee said, "New product launches, particularly the low-competition products in the US market, have helped in achieving the growth."

During the second quarter, Dr Reddy's Laboratories launched a total of 18 new generic products, and filed 11 new product registrations. It also filed a total of 10 DMFs internationally.