Dr Reddy’s net profit beats estimates despite 14% dip

Hyderabad-based Dr Reddy's Laboratories beat street estimates in the third quarter, reporting revenue of ₹8,726.8 crore and profit after tax (PAT) of ₹1,210 crore, with steady India growth and favourable forex helping offset the loss of Revlimid sales in the US.

- [e-mail]

A Bloomberg poll of 24 and 22 brokerages had pegged the drugmaker's consolidated revenue at ₹8,338 crore and its profit after tax at ₹1,089 crore, respectively.

The firm's revenue grew nearly 4.4% year-on-year (yo-y) but marginally declined sequentially by 0.9%, while its profit after tax was down 14% yo-y, and 16% quarter-on-quarter (q-o-q), as product-specific headwinds persisted.

Its earnings before interest, taxes, depreciation, and amortization (Ebitda) was down 11% yo-y to ₹2,049 crore, with margins contracting to 23.5% from the previous year's 27.5%.