Pharmaceutical major Dr Reddy's Laboratories recorded a manifold rise in its net profit to Rs 959.2 crore for the fourth quarter that ended March 31, from Rs 87.5 crore in the same period last year.
The net profit in the base quarter was hit by impairment charges, price erosion and increased competition in the US market, Dr Reddy's Laboratories said in an exchange filing. In addition, the company also benefitted from the sale of nine dermatology brands to Eris Lifesciences for Rs 275 crore, which incrementally boosted its headline numbers for Q4.
Notably, the drugmaker's bottomline also lagged the Street's estimate of Rs 1,093.6 crore.
The meteoric rise in bottomline was also supported by double-digit revenue growth during the fourth quarter. Revenue rose 15.81 percent year-on-year to Rs 6296.8 crore, up from Rs 5,436.8 crore in Q4 of FY22.
The Street had pegged revenue for the company at Rs 6,090.5 crore for the quarter under review.
Sales from the generic of Revlimid and new launches were the key contributors to the strong traction in the US market. The domestic formulations business also aided revenues as it posted double-digit growth.
However, on a sequential basis, revenue growth trailed that seen in Q3 due to moderating sales for gRevlimid.
On May 10, shares of Dr Reddy's Laboratories settled 1.34 percent lower at Rs 4,867.30 on the NSE.
The board of the company recommended a final dividend of Rs 40 per share. The dividend will be paid on or after five days from the date of declaration of the final dividend by the shareholders at the 39th Annual General Meeting (AGM).
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