Dr Reddy's Laboratories on Monday reported a consolidated net loss of Rs 567 crore for the third quarter of current financial year (Q3 FY20) compared with a profit of Rs 485 crore in the same quarter of previous fiscal (Q3 FY19).
Revenue for the quarter rose 14 per cent year-on-year to Rs 4,384 crore, the company said in a statement. The company had reported sales of Rs 3,850 crore in the same quarter last year.
"The profits were impacted due to trigger based impairment charge taken on a few products including gNuvaring. We continue to focus on execution and have made significant progress on quality systems and operational efficiencies," said Co-Chairman and Managing Director G V Prasad.
"The current quarter performance has been good across all our businesses and we achieved strong earnings before interest, taxes, depreciation and amortisation (EBITDA) margins," he added.
During the third quarter, the company launched the authorised generic for the product Nuvaring (a vaginal ring to prevent pregnancy). There was a considerable erosion in the value of this product and hence the drugmaker took an impairment charge.
In addition to this, the company also took an impairment charge on the intangibles pertaining to other products.
More From This Section
Total impairment charge for the quarter thus stood at Rs, 1,320 crore of which Rs 1,114 crore was towards impairment of gNuvaring and the balance of Rs 206 crore towards other product-related intangibles.
At 12:45 pm, Dr Reddy's was trading 3.34 per cent higher at Rs 3,132.55 per share on BSE Ltd.