Dr Reddy's Q1 results: Profit falls 13% YoY to Rs 579 crore, still beats expectations

Dr Reddy’s Laboratories on Wednesday posted a 12.59 per cent year-on-year (YoY) drop in net profit at Rs 579.30 crore for the quarter ended June 30. It had posted a net profit of Rs 662.80 crore in the corresponding quarter last year.

Analysts in an ET NOW poll had projected the figure at Rs 498 crore.

Consolidated revenue increased by 14.93 per cent YoY to Rs 4,417.50 crore during the quarter under review.

Commenting on the results, Dr Reddy’s, Co-Chairman and MD, G V Prasad said "The current quarter’s financial performance has been strong across all parameter. We have been able to serve our patients well and ensured continuity of business operations despite the challenging times.”

He added that the company has started integration of the acquired business from Wockhardt and executed two important licencing arrangements for treatment options for Covid-19. At present, Dr Reddy’s is working towards bringing both these drugs to multiple markets.

The company paid income tax of Rs 299.60 crore, up 60 per cent, against Rs 187.20 crore in the same period last year.

R&D as percentage of revenue stood at 9 per cent in Q1FY21 over 9.4 per cent in Q1FY20.

Shares of the company traded 3.48 per cent higher at Rs 4,191 after the announcement of the quarterly result, while the benchmark BSE Sensex was down 0.48 per cent at 38,308.