Dr Reddy's Labs Q3 net profit drops 29%; Dalal Street still awaits triggers

Resolution of warning letters issued by FDA and clarity on launches key

Dr Reddy’s Laboratories’ December 2017 quarter (Q3) performance has disappointed on several counts and suggests that the wait for investors is not over yet.

Revenues at Rs 38.06 billion, which grew three per cent year-on-year (y-o-y) and seven per cent sequentially, were ahead of analysts’ estimates of Rs 368.8 million. These figures were aided by a licensing income of Rs 1.3 billion. However, its benefits were mitigated by one-offs at the expenditure and tax levels. The company provided Rs 319 million towards settlement charges pertaining to litigation, besides a one-off tax amount of Rs 930 million on account of reforms in