Lucrative Opportunities

What led to a strong quarter revenue growth of 15 per cent Year-on-Year (Y-o-Y) for Dr Reddy’s Laboratories (DRL), despite challenging environment, is the diversified business model that continued to launch value-added generic products in the last two years. It is not a surprise that brokerages remain bullish on the prospects of DRL, which has gained over 70 per cent since calendar year 2020. Being a globally integrated pharmaceutical company, DRL is into three business segments - Global Generic (GG), Pharmaceutical Services and Active Ingredients (PSAI) and Proprietary Products (PP). With a revenue of Rs 44,175 crore in the first quarter (Q1) of Financial Year (FY) 2021, GG contributes to 79 per cent, PSAI to 19 per cent followed by PP to 1 per cent. The  company’s net profit for the quarter decreased by 13 per cent Y-o-Y. However, the comforting factor is that its GG...