Dr Reddy's Laboratories consolidated net profit dips 29% to Rs 557 crore

Dr Reddy's Laboratories on Friday reported 29 per cent decline in consolidated net profit at Rs 557 crore for the fourth quarter ended March 31, 2021.

The Hyderabad-based drug major had posted a net profit of Rs 781 crore in January-March period of 2019-20.

Net sales however rose to Rs 4,608 crore in the quarter under review as compared with Rs 4,336.1 crore in the fourth quarter of 2019-20, Dr Reddy's Laboratories said in a regulatory filing.

For 2020-21 fiscal year, the company posted a consolidated net profit of Rs 1,952 crore as against Rs 2,026 crore in 2019-20.

Net sales increased to Rs 18,420 crore during the last fiscal year as compared with Rs 16,357 crore in 2019-20.

"In FY 21, we continued to grow across all our businesses, enhance productivity and strengthen our development pipeline," Dr Reddy's Laboratories Co-Chairman and MD G V Prasad said.

The company is prioritising its efforts to launch Sputnik V vaccine across India while working on the development and commercialisation of several drugs for the treatment of mild to severe COVID 19 infections, he added.

The drug maker said it has commenced a detailed investigation into an anonymous complaint which alleges that healthcare professionals in Ukraine and potentially in other countries were provided with improper payments by or on behalf of the company in violation of US anti-corruption laws.

A legal firm is conducting the investigation at the instruction of a committee of the company's board, it added.

Dr Reddy's noted that it has disclosed the matter to the US Department of Justice, Securities and Exchange Commission and Securities Exchange Board of India.

"While the matter may result in government enforcement actions against the company in the United States and/or foreign jurisdictions, which could lead to civil and criminal sanctions under relevant laws, the probability of such action and the outcome are not reasonably ascertainable at this time," it added.

The company said its board has recommended a final dividend of Rs 25 per share of Rs 5 face value (500 per cent) for financial year 2020-21.

Dr Reddy's shares were trading slightly up at Rs 5,308 apiece on the BSE.