A study on financial performance of Dr. Reddy's Laboratory Ltd. from 2009 to 2012

Since, last two decades of Indian economy, there is a continue research on company financing activities, particularly aimed at understanding how companies finance their investments and what source they used to finance. In practice, it is observed that finance managers use different combinations of debt and equity to meet the various financial requirements of the company at least cost and risk and for the long term benefit of the company. This paper attempted to review the financial performance of this industry, to test its strengths and weaknesses. This study is based on both primary and secondary data. The collected data have been tabulated, analyzed and interpreted with the help of different financial ratios, it was observed from the study of the financial statement of the Pharmaceutical industry that the profit earning capacity, liquidity position, financial position and the performance of the Dr. Reddy's Pharmaceuticals industry. And a measure of a company's financial performance based on the residual wealth calculated by deducting cost of capital from its operating profit (adjusted for taxes on a cash basis). Also referred to as "economic profit" in reputed company that is Dr. Reddy's Pharmaceutical Ltd. for the period of four year i.e. 2009–2012.