Dr Reddy's Laboratories Limited today said its consolidated profit after tax (PAT) for the quarter ended June 30 was down by 53 per cent to Rs 59.1 crore (as per IFRS), owing to price erosion in the US market and implementation of GST in India.
The city-based drug maker's PAT was down to 59.1 crore in the quarter ended June 30, as against Rs 126.3 crore in the same quarter last year, it said.
As per Indian accounting standards (Ind AS), the consolidated net profit during the quarter was 66.6 crore as against Rs 153.5 crore during the corresponding quarter last year, a statement from Dr Reddy's said.
The revenue for the first quarter was up by 3 per cent to Rs 3,316 crore against nearly Rs 3,235 crore during the April-June quarter of FY17.
The company's co-chairman and CEO, G V Prasad, said the results were below their expectations.
"Our first quarter results of FY18 have been below expectations. While headwinds in the form of price erosion due to the US customer consolidation continue, a lower contribution from new product launches in the US and the GST implementation in India also impacted our performance," Prasad said.
He, however, said the positive side of the results is they are in their journey of quality maintenance, as several inspections by the US FDA teams have successfully completed.
The company spent Rs 510 crore on research and development during the first quarter.
The sale of generics from North America was down by 4 per cent to Rs 1,495 crore in Q1 of FY18 against Rs 1,552 crore in the same quarter last year.
The sale from Indian market was negatively impacted by 10 per cent to Rs 469 crore against Rs 522 crore in Q1 FY17.
The revenue from pharmaceutical services and active ingredients stood at Rs 465 crore, marginally down by 1 per cent.
As on June 30, 99 generic filings were pending before the US FDA , of which 97 are ANDAs (including 59 Para-IV filings).
The company further said it believes that out of the total Para-IV filings, 26 have "first to file" status.
The shares of Dr Reddy's were trading at Rs 2,643.85, down 2.46 per cent, on BSE at 1453 hrs.
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