Dr Reddy's post 14% 1st-qtr FY2017 sales decline

27 July 2016

Indian drugmaker Dr Reddy’s Laboratories (BSE: 500124) today announced its consolidated financial results for the first fiscal quarter ended June 30, 2016/2017 showing sharp declines in sales and profit margin, sending the firm’s shares tumbling 9.8% to 2,995.10 rupees by close of trading in Bombay.

Consolidated revenues at 32.3 billion rupees ($482 million), a year-on-year decline of 14.3%, impacted by a decline in volume in the US market and loss of business in Venezuela. According to Kodak Institutional Equities, Dr Reddy's first-quarter FY17 numbers were very poor with US declining by $54 million quarter-on-quarter and all other divisions missing its estimates. The company reported a 16.1 per cent drop in revenues from the US market

Dr Reddy's Labs reported a 75.6% drop in consolidated net profit at 1.53 billion rupees, from 6.47 billion rupees in the like year-earlier period, which was below the 4.8 billion rupees estimate of analysts polled by Eton. Gross Profit Margin at 56.2%, declined by ~490 bps over that of last year

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