Hyderabad: Higher competition in the United States and a halt of sales in crisis-hit Venezuela have pulled down Dr Reddy’s Laboratories Ltd’s profit by nearly 80 per cent in the first quarter of fiscal 2017 compared to the year ago period.
On Tuesday, India’s second largest drug maker reported a profit of Rs 126 crore in Q1FY17 as against Rs 625 crore in Q1FY16. The company has missed a Thomson Reuters I/B/E/S estimate of Rs 495-crore profit from 17 analysts.
DRL posted a less-than- the-expected consolidated net income at Rs 3,234.5 crore for the quarter under review compared to market expectation of Rs 3,900 crore. In the year ago period, the income was Rs 3,757.8 crore.
According to Abhijit Mukherjee, chief operating officer of DRL, “Lack of new product launches and erosion of pricing of some of the key molecules in the US, the remediation cost for an US FDA warning letter, currency crisis in the Venezuelan market and crash of ruble against world currencies impacted the quarter numbers.” The company, however, has seen a 10 per cent growth in India.
