Dr Reddy's net profit plunges 76% in Q4

Mumbai: Drug maker Dr Reddy's Laboratories on Thursday posted a 70% increase in fourth-quarter sales from Russia, one of its largest markets, despite the ongoing war and sanctions against Moscow by the West. Consolidated revenue from operations for the Hyderabad-based company rose 15% to ₹5,437 crore in the quarter ended March 31. Net profit, however, fell 76% to ₹88 crore, after it took an impairment charge of ₹752 crore on a few non-current assets and made a provision towards an old litigation in Texas.

Sales from Russia at ₹686 crore was also 45% higher sequentially, the company said. The market contributed about 13% to Dr Reddy's sales in the past quarter. For the fiscal year, Russia accounted for ₹2,088 crore of the revenue, up 32% from the previous year. Dr Reddy's overall revenue for the year rose 13% to ₹21,439 crore. The company said the growth in Russia in Q4FY22 was due to traction in base business and new product launches. The company said it had also benefited due to Russians stocking up on drugs in anticipation of the war and divestment of two non-core brands.

Dr Reddy's said its partnership with Russian fund RDIF to commercialise Sputnik vaccine in India would continue as the vaccine was produced locally.