Q3FY17: Dr Reddy's Laboratories' net profit down 19% at Rs 470 crore

Dr Reddy's Laboratories reported 19% year-on-year (YoY) decline in consolidated net profit for its third quarter ended December 31, 2016. 

The company reported consolidated net profit of Rs 470.1 crore in Q3, down by 18.83% from Rs 579.2 crore in the corresponding period of the previous year. 

Consolidated total income from operations stood at Rs 3706.5 crore, also witnessing decline of 6.58% compared to Rs 3910 crore a year ago same period. 

Operating profit (EBITDA) was at Rs 879.3 crore, decreasing by 13.06% year-on-year (YoY). While EBITDA margin was at 23.7%, contracting by 180 basis points yoy. 

GV Prasad, Co-chairman of Dr Reddy's Laboratory said, "Our performance in Q3 has delivered a modest sequential revenue growth of 3% over the previous quarter. Our EBITDA has improved significantly from the last quarter to Rs 8.8 billion, on the back of enhanced emphasis on operational efficiencies and controlling of SG&A cost across all our business."

This Q3, revenue from global generics (GG) stood at Rs 3060 crore, which was down by 9%. The company said, "This was primarily on account of lower contribution from North America and Venezuela. However it grew by 6% sequentially."

Revenue from North America was at Rs 1660 crore, declining by 15% yoy respectively.

As of December 31, 2016, Dr Reddy had cumulatively 92 generic filings pending for approval from the USFDA. 

Going ahead, revenue from emerging market was at Rs 590 crore, also down by 7%. 

While revenue from India rose by 2.4% yoy at Rs 590 crore and that of Europe at Rs 210 crore increasing by 11%. 

Share price of Dr Reddy closed at Rs 3141.60 a piece, above Rs 45.45 or 1.47%.