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Q1 miss for Dr Reddy's, but analysts remain hopeful for future prospects
Devangshu Datta Mumbai
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In the April-June quarter (Q1) of FY26, Dr Reddy's (DRL) US sales fell 4 per cent quarter-on-quarter (QoQ) to $400 million due to erosion in gRevlimid earnings caused by pricing pressure. On a positive note, DRL posted double-digit growth in most ex-US markets, but overall revenue disappointed. The absence of meaningful abbreviated new drug application (ANDA) approvals for DRL, as well as impending tariffs (since it has no US-based formulations facility), remain concerns.
DRL's Q1 FY26 revenue grew 11 per cent year-on-year (YoY) to Rs 8,570 crore, and Europe sales jumped 1.4x YoY to Rs 1,270 crore (15 per cent
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Time of India
28 minutes ago
- Time of India
CM Sai courts steel investors in Chhattisgarh, promises incentives and support
Advt Advt Chief Minister Vishnu Deo Sai on Monday urged steel entrepreneurs from across India to set up their production units in Chhattisgarh, highlighting the incentives offered under his government's new Industrial Policy and the state's rich mineral the ' Green Steel and Mining Summit ' organised by the Confederation of Indian Industry (CII) for its eastern region in Raipur, he emphasised Chhattisgarh's potential as a future hub for green steel manufacturing."Our government's new industrial policy places a special focus on the steel sector. Entrepreneurs engaged in green steel production will receive dedicated grants under this policy," Sai noted that under Prime Minister Narendra Modi's leadership, India has doubled its steel production capacity from 100 million tonnes to 200 million tonnes in the last 10 years with a national target of reaching 300 million tonnes by 2030."In line with this vision, Chhattisgarh aims to raise its own steel production capacity from 28 million tonnes to 45 million tonnes with all groundwork already completed," the CM BJP leader underscored that Chhattisgarh's abundant mineral resources and well-developed infrastructure provide a strong foundation for industrial expansion."This growth will boost the state economy and generate employment at the grassroots level. We are fully committed to maximizing job creation through the manufacturing sector," he CM told the gathering that "Chhattisgarh Anjor Vision @ 2047", a roadmap, has been prepared to align with the national goal of Viksit Bharat @2047", which aims to make India a developed nation in 22 years from 'Anjor Vision' document outlines a phased development strategy with manufacturing identified as the core focus area, especially steel and power, the backbone industries of Chhattisgarh, he Railway infrastructure in the state has been significantly enhanced, and rapid construction is underway to further strengthen the network. The expansion includes ongoing projects worth Rs 47,000 crore. New routes, such as Rowghat-Jagdalpur line and Kirandul to Kothagudem line in Telangana (138 km of which will pass via Bastar), are being developed, the CM a new Railway corridor from Kharsia in Raigarh to Parmalkasa in Rajnandgaon will streamline the supply of raw materials and distribution of finished goods, significantly reducing production costs, he informed the state's new Industrial Policy features a single-window clearance system and over 350 reforms to improve the ease of doing business, Sai CM declared that industries adopting green energy solutions will receive additional support, including special corridors are being developed at a rapid pace, and new industrial parks are being established in the state. The government is offering special grants to private players to set up these parks, he CM urged entrepreneurs present at the summit to invest in Chhattisgarh and set up their units in the informed them about plans to develop a large steel cluster in the proposed State Capital Region that includes Raipur, Durg, and than 250 industrial representatives from five states - West Bengal, Odisha, Jharkhand, Bihar, and Chhattisgarh - attended the explored industrial prospects in Chhattisgarh and held fruitful discussions, a release said.
Time of India
43 minutes ago
- Time of India
Market consolidating now, poised for upswing in H2: Sachin Shah
Sachin Shah , Fund Manager, Emkay Investment Managers , says the Indian economy is poised for a significant upswing in the latter half of the fiscal year, coinciding with an earlier festival season starting in September. Stimulus from regulators and supportive global inflation, particularly in oil and metal prices, are expected to boost demand. Domestic businesses are performing well, with leaders excelling and selective capital expenditure showing positive trends. There is a lot of sectoral divergence . Markets are watching both macros and micros and we see a lot of development happening in the tariff front also. Of course, the India-US deal is still under negotiation. How do you see the construct of the market now? Sachin Shah: You are right. We are seeing a good amount of consolidation but within the markets, within the sectors we are seeing that there is a decent amount of divergence and more importantly since we are in the midst of an earning season, we are seeing decent kind of results, from the likes of HDFC Bank, ICICI Bank or for that matter even companies like Eternal , Paytm, Laurus Labs. 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So, wherever the results have been very decent, markets have rewarded, markets seem to be giving a vote of confidence over there. Wherever there have been some challenges with the results, we are seeing some disappointment; but again over there, we are not seeing a very sharp knee-jerk reaction. We are seeing that investors are probably going to put in more on hold rather than a selloff and basically, we will probably wait out for another couple of quarters because a lot of actions that we have seen at the ground level in terms of whether it was the RBI rate cuts, whether it is the tax breaks, whether it is the liquidity push, lower inflation, should probably start playing out in the next two-three quarters and maybe during the festival season. So, probably that is the hope. Overall, wherever good results are seen, we are seeing decent traction. Wherever, the results are not so good, probably markets are putting them on hold. Let us talk about big bold themes for the next six months. What is on your radar? Last time when we spoke, you were bullish on the consumption sector and themes around that. What is your take on the second half of this current financial year? Sachin Shah: A lot of factors, as far as macros are concerned, seem to be in favour of the Indian economy to start doing much better, particularly in the second half of this financial year which is during the festival season. In fact, this time, the festival season is going to be a little earlier. So, maybe sometime in September, October, November, we should see a decent amount of demand coming back and clearly it is getting a lot of stimulus from the regulator side, plus the global inflation is also very supportive – be it oil prices or a lot of other ferrous and non-ferrous metal prices. Live Events You Might Also Like: India-UK trade deal not historic but should help Indian workers in UK: Swaminathan Aiyar All of that should really help as far as the demand pickup is concerned. Even when you see some of the earning season at this point in time, most of the domestic businesses seem to be doing reasonably okay and within that, the leaders are doing even better. Another very big thing is in terms of selective capex also, when we hear some of the management commentaries in this earning season, that also seems to be under a good trajectory. Overall, we believe that the current earning season is panning out fairly decent and probably the second and third quarters should do even better. What is your view on the pharma sector in the light of the tariff threats which are there currently? I see a significant part of your exposure is in pharma. How should one navigate this sector? Is it a good bet at the current juncture? Sachin Shah: You are right. Basically, all the macros being very positive for the Indian economy, there is just one big overhang, the tariffs. Again, the tariffs relative to the other countries, is something that we need to watch out for. As far as the pharma sector is concerned, we have been fairly constructive on this sector for almost the last two, three, four years or maybe even longer and within that, we have been very strongly positioned as far as the CDMO, the CRAMs (the contract research and manufacturing space) is concerned. So, whether it is Divi's Lab, or Laurus Lab, we have been owners of these businesses for a while now and we believe that these are businesses which are like have a secular theme for the next three to five years, not only China plus one but even Europe plus one in terms of the outsourcing as a theme and companies, all the companies in these sectors, particularly the leaders have actually established with their customers their right to win in terms of their domain expertise, in terms of the setting up very large capacities. Even currently, the kind of the capex announcements that we are hearing from these companies is really large. Something we have not seen cumulatively for the last five-seven years is what we are going to see in the next two-three years, so that is another very important thing. You Might Also Like: Are current market valuations hiding opportunities or risks? Christy Mathai explains The third very important thing is the kind of comfort that they give to their customers in terms of respecting their intellectual property rights because a lot of these companies work on patented products or some of these NCPs, and that comfort as far as their confidentiality on their IPRs is also very critical. So that is one space that has long legs, at least for the next three-seven years. We continue to be very positive on that. Tariff on that, I understand, is also a function of the value proposition that these companies bring to their customers. If they have a strong value proposition compared to the other countries or the companies in the other countries, they will find their way out. What is your view on the automobile sector both from the global front and the eventual impact coming to the domestic market because as you see the tariff implications first 15% was announced for Japan and the latest one is for the European Union, again in particular for the cars itself. Now 15% is very low versus what was anticipated earlier. How do you believe this is helping the automobile space? Do you see some good times for the global automobile makers and then eventual impact coming to India or is it too early to say? Sachin Shah : No, we definitely believe that as far as exports are concerned, and auto components are concerned, we have a very large opportunity, very similar to pharma. Our companies have established the right to win. They have relationships with a lot of these customers as they have been supplying them components. They are also supplying large OEs globally. In fact, not only globally, but even in India, there is a very long gestation period as far as the product approvals are concerned and our companies have already surpassed those hurdles. They have the confidence of their global customers in terms of their quality checks, so that is very positive. Second, another very important thing is in terms of the domestic side because today domestic is still a very large market for our OEs and there we are not seeing very great numbers in the last at least three-four months in this financial year or maybe even the last six months. But there the hope is that with all the measures that both the government and the RBI has taken in the last few months, at the ground level, we should see demand coming back very strongly.
Hans India
an hour ago
- Hans India
Key indices slip to 2-mth low
Mumbai: Falling for the third straight session on Monday, benchmark Sensex tumbled by 572 points to close at nearly a two-month low due to heavy selling in Kotak Mahindra Bank, forex outflows and uncertainty related to the India-US trade deal. The 30-share BSE barometer tanked 572.07 points or 0.70 per cent to settle at 80,891.02, a level not seen since June 4. During the day, it slumped 686.65 points or 0.84 per cent to 80,776.44. The 50-share NSE Nifty declined 156.10 points or 0.63 per cent to close at a nearly two-month low of 24,680.90. As many as 35 Nifty shares declined, and 15 advanced. Analysts said disappointing quarterly results and continued selling by FIIs dragged stock markets down for the third session in a row. Nifty has tanked over 2 per cent or 539 points while Sensex retreated by 1,835 points or 2.2 per cent to trade at near two-month low levels. Among Sensex firms, Kotak Mahindra Bank tumbled the most by 7.31 per cent after the company reported a consolidated net profit of Rs 4,472 crore for the June quarter, and flagged stress on the retail commercial vehicle portfolio due to adverse macroeconomic conditions. The profit in the year-ago period was Rs 7,448 crore, but it had included gains of over Rs 3,000 crore on its stake sale in the general insurance arm, while the net profit for the March quarter stood at Rs 4,933 crore. Bajaj Finance dropped 3.64 per cent amid asset quality concerns, while Bharti Airtel fell by 2.35 per cent. Tata Consultancy Services dropped 1.76 per cent amid reports that the IT major has decided to lay off over 12,000 employees. Sources said that the IT Ministry is keeping a close watch on the entire situation and is in touch with the tech company over the matter. Titan, HCL Tech and State Bank of India were also among the laggards. However, Hindustan Unilever, Asian Paints, ICICI Bank, Power Grid, HDFC Bank and ITC were the gainers. 'Domestic market sentiment has remained cautious, weighed down by a disappointing set of Q1 earnings, delays in the India-US trade agreement, and continued FII outflows. In contrast, global markets remain broadly positive, supported by US-EU trade developments that are perceived as less concerning than anticipated. 'The upcoming monetary policy decisions from the Fed and BoJ, along with the trajectory of domestic quarterly earnings, are expected to play a pivotal role in shaping market direction in the near term,' Vinod Nair, Head of Research, Geojit Investments Limited, said. The BSE smallcap gauge tumbled 1.31 per cent and midcap index fell by 0.73 per cent. Among BSE sectoral indices, realty tanked 4.11 per cent, followed by telecommunication (1.56 per cent), capital goods (1.49 per cent), BSE industrials (1.40 per cent), teck (1.21 per cent) and metal (1.06 per cent).
