Dr Reddy's posts Rs 570-cr net loss due to heavy impairment charge

Firm takes a Rs 1,110 crore hit with generic versions of its Nuvaring drug hitting the market; financial results run completely contra to analyst expectations

In a complete reversal of analyst expectations, drug major Dr Reddy’s Laboratories (DRL) reported a net loss of Rs 569.7 crore for the quarter (Q3) ended December 31, 2019. This is due to an impairment charge of Rs 1,320 crore despite a reasonable growth in revenues during the period. Loss before tax stood at Rs 527.4 crore during the period. 

The company’s profit before tax was Rs 580.5 crore and net profit stood at Rs 485.2 crore in the corresponding quarter of the previous year.

According to the company, launch of generic and authorised generic roll outs for the product