Dr Reddy's net dips 19% in Q3

Drug major Dr. Reddy's Laboratories on Saturday reported a consolidated net profit of Rs 470 crore for the third quarter (October-December) of fiscal 2016-17, registering a 19 per cent decline from Rs 579 crore in the like period a year ago.

The consolidated revenue for the quarter under review (Q3) also declined 7 per cent to Rs 3,707 crore from Rs 3,968 crore in the same period a year ago, the company said in a statement here.

Earnings before interest, tax, depreciation and amortisation (Ebitda) declined 13 per cent to Rs 879 crore from Rs 1,012 crore a year ago and the gross margin too dipped 7 per cent to Rs 322 crore from Rs 347 crore a year ago.

On standalone basis, the company's net profit, however, grew a whopping 85 per cent to Rs 439 crore from Rs 237 crore a year ago and 40 per cent sequentially from Rs 313 crore in the second quarter (July-September) of this fiscal.

Standalone revenue increased 4.9 per cent to Rs 2,569 crore in Q3 from Rs 2,450 crore year ago but declined 2.3 per cent sequentially from Rs 2,628 a quarter ago.

"Our performance in Q3 has delivered a modest sequential revenue growth of 3 per cent and Ebitda improved on the back of enhanced emphasis on operational efficiencies and controlling of selling, general and administrative costs across businesses," said Chief Executive Officer G.V. Prasad in the statement.

The city-based company spent Rs 500 crore on research and development during the quarter, accounting for 13.4 per cent of the revenue.

--IANS

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