Dr Reddy’s net drops by 19% in FY18 Business/Economy/Medicine

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Hyderabad, May 22 (IANS) Pharma major Dr. Reddy’s Laboratories Ltd’s net profit during 2017-18 fell by 19 per cent over the previous year, at Rs 981 crore against Rs 1,204 crore during FY17.

For the full year, the revenues stood at Rs 14,203 crore, up one per cent over FY17.

The net profit during the quarter ended March 31 fell by 10 per cent over the previous quarter.

The Hyderabad-based firm posted net profit of Rs 302 crore during Q4, compared to Rs 334 crore the previous quarter. The fall is 3 percent year-on-year.

The company on Tuesday announced the results for Q4 and for the financial year 2017-18.

It posted Rs 3,535 crore revenues during Q4, down by 7 per cent quarter-by-quarter and one per cent year-on-year.

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Dr. Reddy’s CEO and Co-Chairman G.V. Prasad described it as a challenging year for the company with a relative muted fourth quarter’s performance.

“This was mainly on account of continuing headwinds in the US market and a temporary drop in sales in Russia, attributable to a shift in the channel purchasing pattern,” he said.

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

Gross margin came in at 53.5 per cent during the quarter against 56.3 per cent in Q3FY18 and 51.2 per cent in Q4FY17.

The company attributed this to higher price erosions, increased competitive intensity in some of its key molecules in the US and adverse foreign exchange impact.

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The revenues from global generics segment declined by one per cent during the year due to lower contribution from North America generics markets on account of higher price erosion and unfavourable US dollar conversion.

The board of the company recommended a final dividend of Rs 20 per equity per share on face value of Rs 5 each for financial year 2017-18.

Expenses on research and development (R&D) stood at Rs 435 crore in Q4FY18, which was 12.30 per cent of total revenues.

–IANS

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