Dr Reddy’s Laboratories (DRL) on Thursday reported a 76 per cent fall in consolidated net profits for the quarter ended March 31, 2022 because of impairment charges, thus missing analyst estimates.
The Hyderabad-based drug firm posted a net profit of Rs 87.5 crore compared with Rs 362.4 crore in the same period a year ago.
Revenues rose to Rs 5,436.8 crore from Rs 4,728.4 crore in the year-ago period.
The dent in its bottomline came as the company took Rs 751.5 crore as impairment losses. These included impairment of a drug, Shreveport plant assets and other intangible assets.
“We delivered healthy growth in revenue, though the profits were impacted by the impairment charges. In spite of multiple external challenges, our core businesses performed well, driven by an increase in market share, some strong launches and productivity improvement.
“We will continue to focus on growing our core businesses, invest in future growth drivers and work towards greater integration of sustainability in our businesses,’’ G.V. Prasad, co-chairman & MD, Dr Reddy’s, said.
During the period, the company saw revenues from generic drugs rising 19 per cent to Rs 4,612 crore from Rs 3,874 crore in the corresponding quarter of the previous year.
Of this, revenues from North America rose 14 per cent to Rs 1,997 crore from Rs 1,749 crore while Europe showed a rise of 12 per cent to Rs 444 crore from Rs 396 crore.
India revenues jumped 15 per cent to Rs 969 crore from Rs 845 crore.