December 12, 2024 07:22 (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
Donald Trump vows to eliminate birthright citizenship after taking charge | No alliance with Congress in Delhi polls: AAP chief Arvind Kejriwal | Bengaluru techie's suicide: Atul Subhash's wife and her family booked | Bengaluru techie's suicide: Atul Subhash's wife and her family booked | INDIA bloc to knock on Supreme Court's doors over alleged EVM manipulation during Maharashtra polls | 'Babri Masjid should be rebuilt in Bengal's Murshidabad': TMC MLA Humayun Kabir sparks row | Rajnath Singh calls on Russian Prez Vladimir Putin in Moscow, discusses bilateral defence cooperation | Police to investigate conspiracy angle in Mumbai bus accident that killed 7 | Mamata Banerjee should lead INDIA bloc: Lalu Prasad Yadav | Opposition moves no-confidence motion against VP Jagdeep Dhankar in RS

Dr Reddy's Lab Sept qtr net profit down 9.5% to Rs 13.42 billion

| @indiablooms | Nov 06, 2024, at 05:02 am

Hyderabad: Dr. Reddy's Laboratories, an Indian generic pharmaceutical company, announced on Tuesday that its second-quarter profits were impacted by one-time charges associated with its joint venture with Nestlé India and the acquisition of Nicotinell, reported Reuters

The company also recorded an impairment charge linked to supply chain challenges in the U.S. affecting a specific generic medical product, the report said.

For the quarter ending September 30, Dr. Reddy's reported a consolidated net profit after tax of 13.42 billion rupees ($159.6 million), reflecting a 9.5% decline, it said.

Chief Financial Officer MV Narasimham noted during the post-earnings call that the profit was further affected by a write-off of a debt tax asset due to changes in government land tax regulations.

Despite the profit drop, the drugmaker's total revenue surged by 16.5% to 80.38 billion rupees, exceeding analysts' expectations of an 11% increase, with North American revenue rising by 17%.

Generic drug manufacturers like Dr. Reddy's, Cipla, and Zydus have been facing challenges in the competitive U.S. market, primarily due to lower pricing pressures, commonly referred to as price erosion, the report said.

However, Dr. Reddy's noted that the impact of price erosion was minimal during this quarter, contributing to its double-digit growth in North America.

The company has also benefited from robust sales of its generic version of Bristol-Myers Squibb's popular cancer medication Revlimid, which launched in 2022, along with a strong diabetic drug portfolio that has supported growth in North America.

Revenue from the Indian market, the company's second-largest, rose by 18% to 13.97 billion rupees.

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.