Dr Reddy's Q3 net down 29% at Rs 363 cr

Lower profit margins from global generics sales and increased costs brought the net down

Hyderabad-based Dr Reddy's Laboratories Limited today reported a 29.17% decline in net profit at Rs 363.31 crore for the quarter ended December 2012 on lower profit margins from global generics sales and increased costs. The company had reported a net profit of Rs 512.96 crore in the corresponding quarter a year ago.

The company's net income from sales and services for the quarter under review grew by just 3.47% to Rs 2,865.16 crore from Rs 2,769.19 crore in the corresponding previous quarter. The cost of sales and services increased by 23.8% to Rs 1,376.34 crore from Rs 1,111.71 crore in the year ago period in addition to the increase in other costs.

The company's global generics sales, the core area of the company's operations, have marginally declined to Rs 2,082.77 crore from Rs 2,128.66 crore in the year ago period. The global generics' contribution to the company's profits  declined by 11.4% to Rs 1,249.01 crore from Rs 1,409.65 crore in the corresponding previous quarter.

Dr Reddy's shares were trading at  Rs 1,885, down 1.08% or Rs 20.60 compared to the previous close on Bombay Stock Exchange on Thursday afternoon.