Pharmaceuticals major Dr Reddy's Laboratories today reported 16.82 per cent decline in its consolidated net profit at Rs 574.1 crore for the second quarter ended September 30, 2014 on account of higher expenses.
The company had posted a consolidated net profit of Rs 690.25 crore in the corresponding quarter of last fiscal.
Net income during the period under review stood at Rs 3,587.81 crore as against Rs 3,357.45 crore in the year-ago period, Dr Reddy's Laboratories said in a filing to BSE.
During the quarter, the company said its selling, general and administrative expenses increased to Rs 1,067.33 crore as against Rs 973.68 crore in the same period last fiscal.
Expenses on R&D stood at Rs 411.3 crore, an increase of 37 per cent year-on-year.
"The increase is in line with our planned scale-up in development activities," the company said.
Dr Reddy's said its global generics business revenues were at Rs 2,890 crore, up 9 per cent from the year-ago period driven mainly by India and rest of World territories, primarily Venezuela, and North America.
Revenues from India stood at Rs 480 crore, up 14 per cent from the same period last fiscal. The growth was primarily driven by healthy volume expansion of focus brands, some of which are also listed under the National List of Essential Medicines portfolio, it said.
North American revenues were at Rs 1,430 crore, up 8 per cent, while those of emerging markets were at Rs 830 crore, up 14 per cent.
Generic sales from India stood at Rs 480 crore with a growth of 14 per cent, DRL said.
Income from Pharmaceutical Services and Active Ingredients vertical declined by 6 per cent to Rs 640 crore.
Shares of Dr Reddy's laboratories were trading at Rs 3,027.95 per scrip in the afternoon trade, down 1.71 per cent from the previous close on the BSE.
