Pharma major Dr Reddy's Laboratories today reported a 16.82 per cent decline in its consolidated net profit at Rs 574.1 crore for the second quarter ended September 30, due to muted growth in the US market and depreciation of currencies of Russia and Ukraine.
The company had posted a consolidated net profit of Rs 690.25 crore in the corresponding quarter of the 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, a growth of 7 per cent.
"One of the prime reasons for the muted growth is that both Ruble and Ukrainian currency depreciated considerably against Indian rupee. The impact is almost Rs 71 crore on the top line," Saumen Chakraborty, President, CFO and Global Head of HR, told reporters in a press conference here.
The growth story in the USA remained flat due to customer consolidation taking place there, said Abhijit Mukherjee, Chief Operating Officer of DRL.
"At the time of consolidation there will be natural price erosion and also we did not have any meaningful launches in the USA during the last quarter," Mukherjee said, adding "it may not be very substantial growth in the second half, but it should be better than Q2."
He said the company is planning a few new product launches in the USA market in the second half of the current year.
The company had launched only one product in USA during the July-September quarter.
Revenues from generic sales from Russia and other CIS countries contributed Rs 480 crore during the second quarter of the current year against Rs 552 crore during the same quarter last fiscal.
North American revenues (generic) were at Rs 1430 crore, up 8 per cent, while those of emerging markets were at Rs 830 crore, up 14 per cent.
Sarabjit Kour Nangra, VP Research - Pharma, Angel Broking, said the growth was subdued as USA- its growth driver--posted a growth of only 8 per cent, on the back of old products, with company launching only one product during the quarter. (More)
Shares of the company today closed at 3,046.35, down 1.11 per cent from its previious close on BSE.
