Dr. Reddy's Laboratories is anticipated to experience a downturn in revenue in the upcoming quarter, following a strong performance in the previous quarter. Analysts suggest that on a quarter-on-quarter basis, the company might face a decline of 3-8% in revenue due to seasonal factors. However, year-on-year, there is a projection of a 12-24% increase in profit after tax, indicating overall growth in net profits for the pharma major.
Analysts have identified key areas of interest that will impact Dr. Reddy's performance moving forward. One crucial aspect to watch is the company's potential approvals and launches in the US market over the next 12-18 months, which are expected to be significant drivers of growth. Additionally, the status of the biosimilars pipeline will be closely monitored by industry experts and investors alike.
Several brokerage firms, including Nomura, ShareKhan, PhillipCapital, Centrum, and Nirmal Bang, have provided their insights and projections regarding Dr. Reddy's upcoming performance. Factors like the expected decline in US sales due to lower contributions from specific products, such as Revlimid, are being taken into consideration. While there are estimates of growth in domestic and international markets, there are also concerns about potential margin corrections and profitability in the face of changing market dynamics.
As different analysts offer varying viewpoints on Dr. Reddy's performance, the overall consensus points towards a mixed outlook for the company in the upcoming quarter. While some anticipate growth in specific markets like the US and India, others highlight potential challenges such as declining margins due to various contributing factors. It remains to be seen how Dr. Reddy's will navigate through these dynamics to maintain its position in the pharmaceutical industry.