New Delhi, Jul 22 (PTI) Dr Reddy’s Laboratories Ltd on Wednesday reported a 69.2 per cent decline in consolidated net profit to Rs 434.8 crore in the first quarter ended June 30, hit by the adverse impact of provisions related to the semaglutide ingredients issue and a dip in generics revenue in North America.
The company had posted a consolidated net profit of Rs 1,409.6 crore in the corresponding quarter last fiscal, Dr Reddy’s Laboratories Ltd said in a regulatory filing.
Its consolidated revenue in the first quarter stood at Rs 8,070.5 crore against Rs 8,545.2 crore in the year-ago period, it added.
Total expenses in the quarter under review stood at Rs 3,375.6 crore compared to Rs 3,115.2 crore, the company said.
Commenting on the results,
Dr Reddy’s Laboratories Co-Chairman and MD GV Prasad said, “Our Q1 FY27 performance reflected the expected transition beyond lenalidomide revenues, along with an unexpected impact related to semaglutide API”.
He, however, said the company’s underlying base business continued to deliver healthy double-digit growth across all key geographies.
“Our focus remains on improving the health of our base business through disciplined execution and operational excellence, while building our future pipeline of peptides, biosimilars, and innovative assets to deliver long-term growth,” Prasad added.
The company said that in the first quarter, it had an adverse impact of a provision of Rs 239.7 crore towards inventory and other associated costs related to semaglutide’s active pharmaceutical ingredient (API).
Certain batches of semaglutide were found to be out of specification due to an issue associated with the API used in the product, the company said, adding that “appropriate measures are being taken to ensure product quality and resumption of supplies”.
In the first quarter, global generics revenue slipped 5 per cent to Rs 7,199.3 crore from Rs 7,562 crore in the corresponding quarter of the last fiscal.
Generics revenue from North America declined 35 per cent to Rs 2,204.8 crore against Rs 3,412.3 crore in the year-ago period.
On the other hand, in India, generics revenue grew by 17 per cent to Rs 1,717.7 crore compared to Rs 1,471.1 crore a year ago, the company said.
Emerging markets generic revenue climbed 31 per cent to Rs 1,832.8 crore against Rs 1,404.2 crore in the year-ago period, and rose 13 per cent in Europe to Rs 1,444 crore compared to Rs 1,274.4 crore. PTI RKL BAL BAL
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