On May 19, Dr Reddy’s Laboratories announced a 76 percent drop in its consolidated net profit to Rs 88 crore, well below analysts’ projections of Rs 677 crore.
For the reporting quarter. The pharmaceutical giant recorded a 15% year-on-year increase in consolidated revenues from operations to Rs 5,437 crore.
The impairment of non-current assets at Rs 751.5 crore in the reported quarter contributed significantly. To the company’s consolidated net profit drop.
Dr Reddy’s said it reduced the value of tepilamide fumarate extended release pills by Rs 433 crore, the Shreveport cash generating unit by Rs 305 crore, and other intangible assets by Rs 17 crore during the quarter.
“In spite of multiple external challenges, our core businesses performed well driven by an increase in market share, some strong launches, and productivity improvements,” said Co-Chairman and Managing Director GV Prasad.
The company’s growth was strong in most markets. Sales in North America increased by 14% year on year to Rs 1,997 crore.
Domestic income increased by 15% year on year to Rs 968.9 crore, owing to the introduction of new items. At the same time, in the reported quarter, European business increased by 12% year on year to Rs 444.4 crore.
The company’s economic performance was strong. With consolidated operating profit rising 15.5 percent year on year to Rs 1,298 crore, thanks to cost savings.
Dr. Reddy’s consolidated operating margin increased marginally in the March quarter to 23.9 percent, up from 23.8 percent the previous quarter.
Dr Reddy’s shares were up 0.4 percent on the National Stock Exchange at 1:15 p.m., while the Nifty 50 was down 2.5 percent.