Dr Reddy’s Laboratories Ltd today said its consolidated profit after tax for the quarter ended March 31 jumped over three-fold to Rs 312.5 crore (as per IFRS) as against Rs 74.6 crore in the same quarter last year.
Last year, the company had to make Rs 430 crore provisioning due to the rules in Venezuelan market as the drug maker was not able to repatriate full amount from the market due to the new rules there.
However, revenues during the quarter under discussion declined by five% to Rs 3,554 crore. It was Rs 3,756 crore during the last quarter of last fiscal.
As per Indian accounting standards (Ind AS), consolidated net profit was at Rs 337.6 crore and total income of the company stood at Rs 3,632.4 crore for the fourth quarter ended March 31.
For the full year FY 2017, the drug maker’s net profit declined by 40% to Rs 1,204 crore against Rs 2,001 crore in FY16.
“FY 17 has been a challenging year due to lack of new product approvals for the US market. However, our other geographies delivered good performance, with several new product launches.we are also seeing expanded global access to our biosimilars, as result of successful registrations in emerging markets, GV Prasad, Co-chairman and CEO of DRL said.
On the FDA observations on the company’s manufacturing plants, he said they are in the process of responding to the regulator’s observations.
“We have given our response to FDA with timelines committed to action. We are working on that,” he said in a press conference.
A company official said the company is expected to start operations in Chile this year and business in China will be renewed and product filing will be done soon.
Global Generic sales during the Q4 of FY 17 was down by 5% to Rs 2914 crore against Rs 3,077 crore in the corresponding period of last year.
Revenues from North America for FY 17 were at Rs 6,360 crore year-on -year decline of 16 percent primarily on account of the increased competition in some of the key products such as valganeciclovir, decitabine, azacitidine. Revenues for fourth quarter was at Rs 1,530 crore.
Revenues from Emerging market declined by 11% to Rs 2,110 crore primarily on account of constrained operation in Venezuela.
Revenues from India was at Rs 2,310 crore showing a year on year growth of%. The company spent Rs 1,960 crore on Research and Development in the year FY17.
During the year, the company filed 26 ANDAs with the US FDA. Of these 13 ANDAS were filed in the fourth quarter.
The board recommended a dividend of 20% per equity share of face value of Rs 5 each.