Dr Reddy’s Q1 profit more than halves to Rs 59 crore; GST, lower US sales weigh

Pharma major Dr Reddy’s Laboratories on Thursday reported 53.21 per cent year-on-year fall in consolidated net profit at Rs 59.10 crore for the quarter ended June 30, 2017 against Rs 126.30 crore in the corresponding quarter last year.

Revenues of the company grew 2.51 per cent YoY to Rs 3,315.90 crore in Q1FY18 over Rs 3,234.50 crore in Q1FY17.

Shares of the company were trading 1.61 per cent down at Rs 2,666.95 around 2.20 pm (IST). The scrip opened at Rs 2,719.80 and touched a high and low of Rs 2,725 and Rs 2,648.50, respectively, in trade so far. Benchmark BSE Sensex was up 175 points, or 0.54 per cent, at 32,557.

Revenue from North America declined 4 per cent YoY to Rs 1,490 crore. This is primarily on account of higher price erosion and increased competition.

Topline from India declined 10 per cent YoY to Rs 470 crore. The fall in figures can be attributed to destocking during the transition to the GST regime.