Date: 28-Jan-2020

Dr Reddy’s Labs reports Rs.570 crore net loss for Q3

Dr Reddy’s Laboratories reported a consolidated loss of Rs.569.7 crore for the quarter ended December 2019 as against profit of Rs.485.2 crore in the year-ago period. The consolidated revenues for the quarter increased to Rs.4,383.8 crore, as compared to Rs.3,850 crore in the year-ago period. Commenting on the results, co-chairman and MD, GV Prasad, Dr Reddy’s Laboratories said, "The current quarter performance has been good across all our businesses and we achieved strong EBITDA margins. The profits were impacted due to trigger based impairment charge taken on a few products including Nuvaring. We continue to focus on execution and have made significant progress on quality systems and operational efficiencies". The company's global generics business grew 15 per cent to Rs.3,592.7 crore in Q3FY20 YoY, driven by Europe, emerging markets and India. The company's revenue from emerging markets grew 19 per cent YoY, while India business reported 13 per cent YoY growth for the quarter. The company's pharmaceutical services and active ingredients (PSAI) segment increased 16 per cent YoY during the quarter ended December 2019. During the third quarter, the company launched the authorised generic for the product Nuvaring, which led to considerable erosion in the value of this product, and accordingly, the drug maker took an impairment charge of Rs.1,110 crore.(US$ 156.5 million).