Hyderabad: Poor performance in generic business and weaker rupee pulled down Dr Reddy’s Laboratories’ (DRL) net profit in fourth quarter to Rs 302.2 crore — a decline for the fourth straight quarter — over yearago’s figure.
The company has posted seven per cent decline in its revenue during the quarter under review.
Commenting on the results, CEO and co-chairman G.V. Prasad said “We concluded a challenging year for Dr. Reddy’s with a relatively muted fourth quarter’s performance. This was mainly on account of continuing headwinds in the US markets and a temporary drop in sales in Russia, attributable to a shift in the channel purchasing pattern.”
While global generics — the bread and butter of the company — posted a four per cent fall in sales, pharmaceutical services and active ingredients (PSAI) and proprietary products softened the impact by posting better growth. PSAI and proprietary products have posted a growth of 16 per cent and 26 per cent respectively in Q4 FY18.
In terms of geography wise revenue, India was the only market which posted a positive growth of nine per cent. All other markets, including the US, registered a decline.
