Dr. Reddy’s Laboratories reported a close to 83% year-on-year decline in consolidated net profit to ₹97 crore for the quarter ended March. Revenue from operations increased almost 15% to ₹5,474.9 crore.
Denting the bottomline were the ₹741-crore impairment charges the generic drugmaker recorded on account of significant changes to market conditions for certain products, especially a decrease in market potential and increased competition leading to lower volumes, according to the results prepared under the Indian Accounting Standards. The company also made provisions towards an old litigation with the State of Texas, U.S. of ₹98 crore.
For the fiscal, net profit climbed to ₹2,182.5 crore (₹1,951.6 crore) that came on an 11.6% increase in revenue from operations to ₹21,545.2 crore.
“We delivered healthy growth in revenue, though the profits were impacted by impairment charges,” co-chairman and MD G.V. Prasad said. In spite of multiple external challenges, the core businesses performed ‘well driven by an increase in market share, some strong launches and productivity improvement’, he added.
Mr. Prasad and other top executives of the company said the performance was fuelled by growth in business across key markets, including Russia. North America returned to a billion dollars worth of business for the year.
To queries on the impact of the Russia-Ukraine conflict, they said the company’s operations in Russia, which is one of its main markets, continued as usual. “We are shipping goods, getting money. There was some stocking and that is going to normalise,” said Mr.Prasad, adding there was some impact initially in Ukraine and that the company was finding ways to support the country with medicines.
On COVID-19 vaccine Sputnik, CEO – API and Services Deepak Sapra said there was no impact as the Russian vaccine was being made in India now. Sputnik Light was also recently approved as a booster for those who had Sputnik V as the primary vaccine. “In addition, we are currently in the midst of clinical trials for Sputik Light as universal booster (for those who have taken Covaxin and Covishield) and expected to approach the regulator for approval towards end of June or early July,” he said.
He hinted that the price of the vaccine was likely to be reduced. On queries as to the new price, he said it would be ‘competitive.’
The company declared a final dividend of ₹30 per equity share of ₹5 each for FY22.
