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Dr Reddy’s Laboratories Ltd’s net profit declined 29 per cent in the third quarter ended December 31, 2017 to Rs 334 crore compared with Rs 470 crore in the corresponding quarter of the previous financial year, as per International Financial Reporting Standards (IFRS).
Total revenue, however, grew 3 per cent to Rs 3,806 crore from Rs 3,706 crore in the same period last year. During the quarter under review, the Tax Cuts and Jobs Act of 2017, which was enacted in the US, differed tax assets and liabilities of the US entity have been remeasured resulting in a one-time charge of Rs 93 crore, the Hyderabad-based company said in the results announced on Thursday.
There was a 2 per cent decline in the global generics segment revenue primarily on account of adverse foreign exchange, as the US dollar depreciated, and lower contribution from the European market which showed a 7 per cent decline in revenues.
In North America, there was a 3 per cent decline due to higher price erosion and impact of adverse foreign exchange. "This was partly offset by new products contribution,’’ the company said.
Revenue from Russia grew 9 per cent, while the same from other CIS countries and Romania fell 2 per cent followed by 17 per cent decline in revenue from the rest of the world. Indian revenue for the Hyderabad-based drug-maker, however, grew 3 per cent.
During the quarter, the USFDA had approved Impoyz (clobestasol propionate) cream. In line with the existing outlicensing pact with Encore Dermatology Inc, this approval had triggered a milestone recognition of Rs 130 crore.
As on December 31, 2017, cumulatively 102 generic filings are pending for approval with the US regulator. "Of these, 99 Abbreviated New Drug Applications, 59 are Para IV out of which we believe 29 have first to file status,'' it said.
Dr Reddy’s shares were trading down by 2.14 per cent at Rs 2,505.50 on the BSE.
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