Dr Reddy's Laboratories Q2 profit down 60 %

New Delhi : Dr Reddy's Laboratories reported a decline of 60.12 per cent in consolidated net profit for the September quarter at Rs 30.89 crore, mainly because of drop in sales in Venezuela and North America.

The company had posted a net profit of Rs 77.47 crore in the July-September quarter of the previous fiscal year, Dr Reddy's Laboratories (DRL) said in a filing to BSE.

DRL's total income from operation on consolidated basis was down 10.05 per cent to Rs 361.63 crore as against Rs 402.07 crore in the corresponding quarter last fiscal.

"All major businesses have shown sequential improvement over the previous quarter with revenues up 11 per cent and EBITDA 61 per cent. We have made progress on remediation efforts and continue to work on addressing concerns of the regulator," DRL's Co-chairman and CEO G V Prasad said.

Its total expenses was up 4.49 per cent to Rs 325.15 crore as against Rs 311.17 crore last year.

"Gross profit margin declined by 56 per cent primarily on account of lower sales due to increased competitive intensity in some of our key molecules in the US," the company said.

"Revenues from global generic segment was at Rs 29 billion, year-on-year decline of 12 per cent; decrease primarily on account of lower contribution from North America and loss of sales from Venezuela," it added.

In first half of the current fiscal, DRL's consolidated standalone net profit was down 67.48 per cent to Rs 46.24 crore as against Rs 142.22 crore in the six-month period a year ago.

Its total income in first half of the current fiscal was also down 11.96 per cent to Rs 686.10 crore compared to Rs 779.35 crore in the same period last year.

Shares of DRL were trading at Rs 3,115.60 on BSE during the morning trading hour, up 0.84 per cent from previous close.