The News International Team
12:30pm Dr Reddy’s Labs disappoints street
Drug maker Dr Reddy’s Laboratories’ second quarter consolidated net profit fell 16.8 percent to Rs 574 crore compared to Rs 690.2 crore in the year-ago period.
Profit was slightly above estimates but topline and operational performance missed street expectations. Profit was expected at Rs 537 crore on revenue of Rs 3,702 crore (up 10.3 percent) for the quarter, according to the average of estimates of analysts polled by CNBC-TV18.
Net sales grew by 6.9 percent to Rs 3,588 crore in the quarter ended September 2014 compared to Rs 3,357 crore in same quarter last year.
Consolidated operating profit during the quarter declined 12.2 percent year-on-year to Rs 646.5 crore and margin dropped 400 basis points to 18 percent as against expectations of Rs 800 crore (up 8.8 percent) and 21.6 percent, respectively. The stock fell nearly 4 percent.
12:00pm Market Check
The market continued to trade strong on the back of positive global cues and strong buying in heavyweights like Infosys, ITC and Reliance Industries. Midcaps and Smallcaps traded with gains of more than 0.6 percent while the market breadth remained firm with two shares advancing for every share declining on the NSE.
The 30-share BSE Sensex rose 164.73 points to 27045.55 and the Nifty climbed 42.65 points to 8070.25.
Hero Motocorp held more than a percent gains as RBI allowed foreign investors to buy up to 49 percent of the paid up capital of the company. As of quarter ended September 2014, FIIs held 34.34 percent stake in the company.
Tata Motors kept its top position in the buying list, up 2.7 percent followed by Mahindra & Mahindra and Tata Steel with more than 2 percent rally. Infosys and Reliance Industries climbed over 1.5 percent while ITC gained 0.9 percent.
Just Dial bounced back with 6 percent gains after losing 16 percent in the last 2 days.
Asian markets extended the rally with the Shanghai, Hang Seng and Nikkei rallying more than a percent on positive US cues.