Dr Reddy’s Laboratories today posted a marginal increase in consolidated net profit at Rs 579.2 crore for the third quarter ended December 31, hit by weak sales in the emerging markets like Russia, CIS nations and Romania.
The company had posted a net profit of Rs 574.5 crore during the same period of previous fiscal.
Net income from sales and services rose to Rs 3,967.9 crore for the third quarter as compared to Rs 3,843.1 crore during the same period of previous fiscal, Dr Reddy’s Laboratories said in a regulatory filing.
“Despite multiple challenges we have had a satisfactory quarter in terms of our financial performance. All of our key markets continue to perform well and show healthy growth,” Dr Reddy’s Laboratories Co-Chairman and CEO GV Prasad said.
However, the company’s performance has been impacted due to diverse macro economic conditions across key emerging market territories, he added.
The company’s emerging markets posted revenue of Rs 639.9 crore in the third quarter ended December 31, as against Rs 884.3 crore during the same period of the previous fiscal, down 28 per cent.
“The two approvals and one tentative approval of our new drug applications (NDAs) in the very first review cycle has been a positive development and lays the foundation for building a strong and sustainable proprietary products business,” Prasad said.
Shares of Dr Reddy’s Laboratories were trading at Rs 3,008 apiece on the BSE, down 2.04 per cent from previous close.