The Hindu Business Line : Dr Reddy's Q1 net falls 78 pc to Rs 17.3 crore

DR Reddy's Laboratories Ltd has suffered a fall of 78 per cent in its net profit at Rs 17.3 crore during the first quarter ended June 30 from Rs 79.2 crore in the corresponding quarter of previous fiscal.

Significant increase in expenses towards research & development, rise in selling, general and administrative expenses, and a steep fall in foreign exchange gains being the important reasons for the fall.

As per the unaudited financial results taken on record by the board here on Tuesday, the company recorded a marginal increase of six per cent in its revenues at Rs 510.8 crore (Rs 481.2 crore).

The company has suffered a drop of one per cent in gross profit at Rs 262.6 crore (Rs 265 crore), 52 per cent fall in operating profit before foreign exchange considerations at Rs 36.6 crore (Rs 76.4 crore) and a fall of 95 per cent after foreign exchange losses at Rs 4.4 crore (Rs 84.2 crore). With the help of other income of Rs 11.2 crore (Rs 14.1 crore), the company improved its profit before taxation to Rs 14.4 crore (Rs 96.9 crore).

For the quarter under review, the company incurred cost of revenues of Rs 248.2 crore (Rs 216.2 crore), an increase of 15 per cent, Rs 164.5 crore towards selling, general and administrative expenses (Rs 146.4 crore), a growth of 12 per cent, and Rs 52.5 crore towards R&D expenses (Rs 32.6 crore), up by 61 per cent.

The company suffered a steep fall in foreign exchange gains at Rs 36.6 crore compared with Rs 76.4 crore in the corresponding quarter of previous fiscal. In a press release here, the company attributed this reversal primarily to the change in the rupee-dollar parity during the quarter under review.

Dr Reddy's said it has submitted two abbreviated new drug applications (ANDAs), both para-IV filings, including one first-to-file position during the quarter under review. With this, the total ANDAs of the company pending before the USFDA reached to 37, which include 26 para-IV filings, the company said.