Doctor Reddy's Laboratories said on Thursday that its consolidated net profit for the quarter ending March 2022 fell 75.85% to Rs 87.5 crore from Rs 362.4 crore in the same quarter last year. The earnings figure was significantly lower than an ET Now analyst survey of Rs 560 crore.
Revenue for the quarter rose 14.98% to Rs 5,436.8 crore from Rs 4,728.4 crore in the same period last year. The company said earnings for the quarter included Rs 177 crore from the sale of territorial rights to two of the company's antibacterial brands in Russia and the CIS region and Rs 39 crore from the sale of two brands in India at Mankind Pharma.
The companies also said that during the quarter there were significant changes in market conditions for products in the company's generic and proprietary segments. The changes include a decrease in the product's market potential, increased competition leading to lower volumes and revenues that do not meet expectations, the company said. As a result, the company recorded an impairment of Rs 756.2 crore on various long-lived assets.
“We saw healthy sales growth, although earnings were affected by impairments. Despite many external challenges, our core businesses performed well, driven by market share gains, strong launches and productivity gains,” said GV Prasad, co-president and general manager of Dr. Reddy's Laboratories. "We will continue to focus on growing our core businesses, investing in future growth drivers and working to further embed sustainability into our business."
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