Dr Reddy’s Laboratories has reported a 28 per cent year-on-year decline in consolidated net profit to Rs 554 crore for the quarter ended March, sharply below analysts’ expectations. The drugmaker reported 7 per cent year-on-year growth in consolidated revenues to Rs 4,728 crore for the fourth quarter of the last financial year, also below Street’s estimates.

The company’s board, however, approved a final dividend of Rs 25 per share for the financial year 2020-21. DRL’s muted topline performance was largely due to a weak show in the North American market, its largest revenue contributor. North America sales fell 3 per cent on-year to Rs 1,749.1 crore. On a sequential basis, sales grew merely 1 per cent.

The year-on-year decline was primarily on account of higher volumes last year due to the pandemic-related stocking up and price erosion, the company said. Back home, growth was strong compared with the year-ago period largely because of the effect of a low base, due to the national lockdown and supply crunch last year. Sales in India jumped 23 per cent on a year-on-year basis to Rs 844.5 crore during the quarter.

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Sales in the European market grew 15 per cent on year to Rs 395.6 crore. Emerging markets sales climbed 10 per cent to Rs 884.5 crore.

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