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.

• Coal India, AMNS Sign MoU on Syn-Gas at Paradip Plant
• HAL Hits 52-Week High of Rs 5,055 on Strong Q1 Results
• MP Approves Rs 1,757 Crore Bhopal-Vidisha Road Project
• Nvidia Reportedly Developing 1 Trillion-Parameter AI Model
• West Coast Paper Hits 52-Week High on Strong Q1 Profit

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.

Stock Covered in the news

Dr Reddy’s Laboratories-View Detailed Analysis