Drop in sales in Venezuela and North America.
The Indian multinational pharmaceutical firm Dr. Reddy’s Laboratories recorded a decline of 60.12 per cent in consolidated net profit for the September quarter, at Rs 30.89 crore. The fall in the profit is mainly attributed to the drop in sales in Venezuela and North America.
The sharp decline in revenue came as a shock as Dr. Reddy’s Laboratories had posted a net profit of Rs 77.47 crore in the July-September quarter of the previous financial year.
According to the report, the income from operations came down 10.5 percent to Rs. 361.63 crore against Rs 402.07 crore in the corresponding quarter last financial year.
DRL’s Co-chairman and CEO G V Prasad said, “All major businesses have shown sequential improvement over the previous quarter with revenues up 11 per cent and EBITDA 61 per cent. We have made progress on remediation efforts and continue to work on addressing concerns of the regulator.”
According to the report, total expenses was up 4.49 per cent to Rs 325.15 crore against Rs 311.17 crore last year.
“Gross profit margin declined by 56 per cent … primarily on account of lower sales due to increased competitive intensity in some of our key molecules in the US,” the company said.
“Revenues from global generic segment was at Rs. 29 billion, year-on-year decline of 12 per cent; decrease primarily on account of lower contribution from North America and loss of sales from Venezuela,” it added.
Dr. Reddy’s consolidated net profit was down 67.48 percent reaching Rs. 46.24 crore as against 142.22 crore just six months ago.
The total income of Dr. Reddy’s in the first half was also down at 11.96 per cent to Rs 686.10 crore against Rs 779.35 crore in the same period last year.
Shares of DRL were trading at Rs 3,115.60 on BSE during the morning trading hour, up 0.84 per cent from previous close.