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Pharma major Dr Reddy’s Laboratories’ consolidated net profit as per IFRS more than doubled at ₹312 crore in the fourth quarter ended March 31, 2017, against ₹74 crore in the corresponding quarter of the previous year.
The revenue of the Hyderabad-based company, however, declined 5 per cent to ₹3,554 crore against ₹3,752 crore in the year-ago period, the company said in a release issued here on Friday.
For the full year ended March, 2017, the net decreased 40 per cent at ₹1,203 crore (₹2,001 crore).
“FY-17 has been a challenging year due to lack of new product approvals for the US market. However, our other geographies delivered good performances with several new product launches,’’ said GV Prasad, Co-chairman and CEO. The total revenue too, decreased 9 per cent at ₹14,080 crore (₹15,470 crore).
The decrease in revenue and profit was due to 10 per cent and 5 per cent decline in revenues from global generics and pharmaceutical services and active ingredients segments, respectively.
The decline in revenue from North America was primarily on account of increased competition and price erosion in the key products of Dr Reddy’s such as valganciclovir, decitabine and azacitidine.
Though revenues from emerging markets declined 11 per cent, there was 9 per cent growth in Russia as well as India.
In the pipeline For the current financial year, Dr Reddy’s has lined up about 70-80 product launches including 10 in the US market. “In FY17, we have filed 24 Abbreviated New Drug Applications (ANDAs), including 13 in the fourth quarter. Totally there are 101 pending approvals out of which 62 are Para-IV filings,’’ said Saumen Chakraborti, Chief Financial Officer.
The company is expanding its footprint. “The expansion is in Latin America, Asia Pacific as well as Europe. In Europe, we are going beyond Germany and the UK to France, Italy and Spain,’’ Prasad said.
USFDA observations Dr Reddy’s will now focus on addressing the issue of observations on its plants by the US Food and Drug Administrator.
The capex for FY-18 will be in the range of ₹1,000 to ₹1,200 crore.
The board of directors has recommended a final dividend of ₹20 (400 per cent) per equity share of ₹5 face value, for the financial year 2016-17.
The company’s scrip closed at ₹2584.70 on the BSE on Friday.
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