The pharmaceutical major reported a 15 percent year-on-year rise in consolidated revenues from operations
Dr Reddy’s Laboratories on May 19 reported a 76 percent year-on-year decline in its consolidated net profit to Rs 88 crore, which was sharply below analysts’ expectations of Rs 677 crore.
The pharmaceutical major reported a 15 percent year-on-year rise in consolidated revenues from operations to Rs 5,437 crore for the reported quarter.
The decline in consolidated net profit of the company was largely driven by impairment of non-current assets worth Rs 751.5 crore in the reported quarter.
Dr Reddy’s said that during the quarter it marked down the value of tepilamide fumarate extended release tablets by Rs 433 crore, Shreveport cash generating unit by Rs 305 crore and impairment of Rs 17 crore in other intangible assets.
Also read: Dr Reddy’s Q4 profit slides due to impairment charges, firm to focus on growing core businesses
“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.
Growth in most markets for the company was strong. The North America market saw sales grow 14 percent on-year to Rs 1,997 crore.
The domestic business also reported a 15 percent on-year growth in revenues to Rs 968.9 crore aided by launch of new products. At the same time, European business grew 12 percent on a year-on-year basis to Rs 444.4 crore in the reported quarter.
The operating performance of the company was resilient as consolidated operating profit grew 15.5 percent on-year to Rs 1,298 crore aided by cost optimisations.
Dr Reddy’s consolidated operating margin in the quarter expanded slightly to 23.9 percent in the March quarter from 23.8 percent in the year-ago quarter.
At 1:15 pm, shares of Dr Reddy’s were up 0.4 percent at Rs 3,920.2 on the National Stock Exchange while the Nifty 50 was down 2.5 percent.
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