Why Dr Reddy’s Stock Fell 10% After Missing Q1 Estimates by 1%

By Aditya Raghunath
Investing.com -- Dr. Reddy’s Laboratories Ltd (NS: REDY ) reported its numbers for Q1 FY22. Net profit came in at Rs 570.8 crore compared to Rs 594.6 crore in the corresponding quarter last fiscal. Revenue for Q1 FY22 came in at Rs 4,919 crore, up 11% compared to Rs 4,417.5 crores in Q1 FY21.
The stock closed at Rs 4,835.2, down 10.31% today. The reason for this drop is not the missed numbers. It is because Dr. Reddy’s has been issued a subpoena of documents for CIS (Commonwealth of Independent States) geographies, and that the company is investigating an anonymous complaint into improper payments in other countries.
In an exchange filing, Dr. Reddy’s said, ''The company has commenced a detailed investigation into an anonymous complaint. The complaint alleges that healthcare professionals in Ukraine and potentially in other countries were provided with improper payments by or on behalf of the Company in violation of US anti-corruption laws, specifically the US Foreign Corrupt Practices Act. A US law firm is conducting the investigation at the instruction of a committee of the Company's Board of Directors.''
The company has said that it has disclosed the ongoing investigation to the US DoJ (Department of Justice, SEC (Securities and Exchange Commission), and SEBI (Securities Exchange Board of India).
Dr. Reddy's said it is also in the process of responding to the subpoena. ''While the matter may result in government enforcement actions against the company in the United States and/or foreign jurisdictions, which could lead to civil and criminal sanctions under relevant laws, the probability of such action and the outcome are not reasonably ascertainable at this time,'' the company added.

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Add on evey deep .... will recover all loses eithin 2-3 working sessionLike 0
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all negative news come now..to take it further down and scare retailers to exit..time to catch the fearLike 1
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WHEN FALL COMES EVERYONE FINDS HIS OWN REASON LIKE OVERPRICED...ALREADY RUNUP A LOT ETC..ETC...BUY KAB KAROGE...USE CORRECTION TO INVEST...REMEMBER INFY WHISTLE BLOWER EPISODE...SAME HERE...STILL INVESTIGATION GOING ON.Like 5
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sell karna chahiyeLike
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sell off with great volume but delivery 23%. Means, threatening retail investors.Like 2
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My fingers are crossed. Waiting on right verdict in the matter. In the meanwhile seize an advantage of fall in CMP eventually and invest more in it. Dr. Reddy’s stock is very good for the long run investment.Like 1
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Big Players already played the game, someone filled a case from India in Ukraine to bring it down n make money.Like 1
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Stock is anyway over valued like many others in 2021... it can still go lower for the coming quarters as maintaining these hyped expectations will be achievement forget about beating themLike 2
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Big Players already played the game, someone filled a case from India in Ukraine to bring it down n make money.Like
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at the end of the day insider got the news before hand.Like 1
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Buy it tomorrow or you ll miss itLike 3
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Market overreacted.it will bounce back .Like 6
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