Dr Reddy's net profit up 7.4 percent, lags estimates

MUMBAI (Reuters) - Dr Reddy's Laboratories, India's No.2 drugmaker by sales, reported a 7.4 percent rise in quarterly net profit, which lagged street estimates as an increase in generic sales in its key United States market was offset by a fall in European revenue.

The Hyderabad-based drugmaker said consolidated net profit rose to 3.61 billion rupees for the fiscal first quarter ended June, from 3.36 billion rupees a year earlier. Revenue rose 12 percent to 28.4 billion rupees.

Analysts, on an average, had forecast net profit at 4.29 billion rupees on net sales of 31.16 billion rupees.

Valued at nearly $6.6 billion, shares in Dr Reddy's Laboratories extended losses to more than 3 percent after the result in the main Mumbai market <.NSEI> that was down about 1 percent.

(Reporting by Kaustubh Kulkarni in MUMBAI; Editing by Anupama Dwivedi)