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Hyderabad-based pharmaceutical major Dr Reddy's Laboratories Limited reported a 15.6% decline in consolidated net profit at Rs 481.60 crore for the quarter ended March, 2014 on the back of higher expenditure and moderate growth in revenues during the three month period.
The company's net profit stood at Rs 570.89 crore in the same quarter last year.
The revenues rose by 4.22% to Rs 3,480.90 in the quarter under review from Rs 3,339.94 crore in the corresponding previous quarter.
The growth in revenues largely contributed by its global generics business primarily driven by North America and Emerging markets, according to a press release.
While the spending grew mainly on account of selling and administrative expenses and the research and development expenses during the period the company's balance sheet benefited by lower tax provision compared to the year ago period.
The board of directors has recommended a final dividend of Rs 18 per share at its meeting on Tuesday.
The global generics accounted for 78% of the total revenues at Rs 2,731.8 crore from 68% or Rs 2,256.6 crore in the corresponding previous quarter while the Pharmaceutical services (PSAI) segment continued to post negative growth at Rs 664.1 crore, down to 19% of the total revenues from 30% (Rs 1,017.3 crore) in the year ago period.
Dr Reddy's scrip fell 3% to Rs 2,637 or down by Rs 82.15 in the after noon trade on Bombay Stock Exchange from its previous close of Rs 2,719.15.
