Moneycontrol
Last Updated : Jan 25, 2018 03:41 PM IST | Source: Moneycontrol.com

Dr Reddy's Labs Q3 profit tanks 29% to Rs 334.4 cr but North America biz improves QoQ

Sequential decline in bottomline was just 0.88 percent due to improvement in North America business.

Pharma major Dr Reddy's Laboratories has reported a 29 percent degrowth year-on-year in consolidated profit at Rs 334.4 crore due to continued decline in North America business, but North America business improved by 12 percent on sequential basis.

"Sequential growth of 12 percent, primarily on account of contribution from new products major being sevelamer carbonate," the company said.

Revenue from operations grew by 3 percent year-on-year to Rs 3,806 crore for quarter ended December 2017.

North America generics business, which contributed 42 percent to total revenue, degrew by 3 percent to Rs 1,607 crore in Q3 YoY.

"YoY decline of 3 percent primarily on account of higher price erosions due to channel consolidation and increased competition in some of key molecules, and impact od adverse foreign exchange. It is partly offset by new products contribution," DRL said.

As of December 2017, the company said cumulatively 102 generic filings are pending for approval with the USFDA. Of those, 99 ANDAs are Para IV out of which company believes 29 have first to file status.

Europe segment registered a 7 percent fall during the quarter year-on-year. Revenue from its emerging markets also declined 1 percent to Rs 590 crore but India business showed 3 percent growth YoY at Rs 612.6 crore.

Consolidated EBITDA (earnings before interest, tax, depreciation and amortisation) fell 8.4 percent to Rs 806 crore and margin contracted 300 basis points to 21 percent compared to year-ago.

Numbers were ahead of expectations. Profit was estimated at Rs 303 crore on revenue of Rs 3,618 crore and operating profit was expected at Rs 603 crore with margin at 16.7 percent for the quarter, according to average of estimates of analysts polled by CNBC-TV18.

The pharma major said pharmaceuticals services and active ingredients (PSAI) segment grew by 1 percent year-on-year to Rs 543.6 crore, driven by India (up 53 percent YoY) and Rest of World (up 25 percent). However, North America business fell 31 percent and Europe 14 percent.

At 12:15 hours IST, the stock price was quoting at Rs 2,510, down Rs 51.85, or 2.02 percent on the BSE.
First Published on Jan 25, 2018 12:15 pm

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