Dr Reddy’s Lab registers 3% decline in net profit

New Delhi: Dr Reddy’s Laboratories on 22nd May reported a 3.29 percent fall in its consolidated net profit to Rs 302.2 crore for the fourth quarter ended March 31, 2018, mainly on account of continuing headwinds in the United States and steep sales drop in Russia. The company reported a net profit of Rs 312.5 crore during the same period last year.

Consolidated revenue of the company stood at Rs 3,534.9 crore for the quarter under consideration. It was Rs 3,554.2 crore for the same period a year ago. For the fiscal year 2017-18, the company posted a net profit of Rs 980.6 crore as against Rs 1,203.9 crore for the year-ago period.

Revenue during the quarter grew 1 percent to Rs 3,534.9 crore compared to Rs 3,498.5 crore a year ago. For the full year ended March 31, Dr Reddy’s revenues grew 1 percent to Rs 14,202.8 crore while net profit declined 2 percent to Rs 1,434.1 crore.

“We concluded a challenging year for Dr Reddy’s with a relatively muted fourth quarter’s performance. This was mainly on account of continuing headwinds in the US markets and a temporary drop in sales in Russia, attributable to a shift in the channel purchasing pattern,” said GV Prasad, Chairman, CEO and Co-chairman of Dr Reddy’s.

“Looking ahead we will continue to work diligently on resolving pending regulatory issues. We will also focus on accelerating new products to market and improving our approval process,” Prasad added.

Global generics revenue, which contributed around 80 percent to total income, slipped 4 percent to Rs 2,783.6 crore YoY.