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Headwinds in the US market drag Dr Reddy’s Q4 profit by 3% at ₹302 cr

Hyderabad | Updated on May 22, 2018 Published on May 22, 2018

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Dr Reddy’s Laboratories Ltd has posted a profit of ₹302.2 crore for the fourth quarter ended March 31, 2018, down 3.3 per cent against profit of ₹312.5 crore for the corresponding quarter in the last fiscal.

The Hyderabad-based pharmaceutical major logged in revenues of Rs ₹3,534.9 crore (₹3,554.2 crore).

Reflecting a slightly muted numbers for the financial year ended March 31, 2018, the company posted a profit of ₹980.6 crore and revenues of ₹14,202.8 crore against a profit of ₹1203.9 crore and revenues of ₹14,080.9 crore for the previous financial year.

GV Prasad, CEO and co-Chairman, Dr Reddy’s, said: “We concluded a challenging year for Dr Reddy’s with a relatively muted fourth quarter’s performance. This was mainly on account of continuing headwinds in the US markets and a temporary drop in sales in Russia, attributable to a shift in the channel purchasing pattern.”

Tax cuts

“Looking ahead, we will continue to work diligently on resolving pending regulatory issues. We will also focus on accelerating new products to market and improve our approval process,” he said.

During FY2018, the Tax Cuts and Jobs Act 2017 was approved and enacted in the United States. Consequent to this enactment, the deferred tax assets and liabilities of the US entity have been re-measured resulting in a charge of ₹130 crore for the full year.

The board has recommended a final dividend of ₹20 (400 per cent) per equity share of ₹5 face value for the financial year 2017-18.

The company expects the observations on two of its units located near Vizag will get resolved as it is addressing issues relating to them, Prasad said.

Published on May 22, 2018
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