Dr Reddy’s Laboratories has reported a consolidated net profit at Rs 363.31 crore for the third quarter ended December 31a decline of 29.27 per cent over Rs 512.96 crore registered during the corresponding period last year.
However, these two are not comparable, as there was one time gain of Rs 444 crore from one product in the corresponding quarter last year.
The consolidated income for the third quarter was Rs 2,865 crore, up 3.5 per cent over Rs 2,769 crore it logged for the corresponding quarter last year.
However, on a standalone basis, the consolidated net profit was up three-fold at Rs 346.64 crore (Rs 108.03 crore). Addressing a press conference, Saumen Chakraborty, President and Chief Financial Officer, said Europe sales had declined 20 per cent to Rs 193 crore but the sales in Russia and other CIS countries improved 35 per cent to Rs 438 crore. The Indian market registered 12 per cent growth at Rs 372 crore.
The Europe business, where the company mostly focuses on Germany and the UK, declined. German market is moving towards a tender-based approach and is fiercely competitive. The company plans to revisit its strategy for Europe, he said.
Highlighting the company performance, he said the company’s research and development expenditure had gone up 33.8 per cent to Rs 202 crore. This is about 7 per cent of the sales.
Referring to global generics, he said that its sales had declined 2.2 per cent to Rs 2,083 crore. In the US, generics sales declined 16.8 per cent to Rs 924 crore.
The over-the-counter business in Russia has grown rapidly in the last three years.
During the quarter, the company launched 17 new products and filed 13 product registrations.
On Thursday, the company shares closed at Rs 1,878.15 on the BSE, down 1.44 per cent over the previous close.