Dr. Reddy's Laboratories posts net loss at Rs569.7cr

Dr. Reddy's Laboratories posts net loss at Rs569.7cr

Dr. Reddy's Laboratories Ltd registered a consolidated net loss of Rs569.7cr in Q3FY20 vs. a net profit of Rs485.2cr. Its revenue rose 13.8% yoy to Rs4,384cr in Q3FY20.

Q3FY20 financials include an impairment charge of Rs1,320cr on some of the company's products forming part of Global Generics and Proprietary Products segments, the pharma company said in the filing.

• Revenues from Emerging Markets came it at Rs920cr, with a 19% yoy growth and 11% as sequential growth.
• Revenues from Russia at Rs490cr, 20% growth on a yoy basis driven by an increase in volumes coupled with better realizations in some of the key molecules.
• Revenues from other CIS countries and Romania market at Rs180cr, 26% yoy growth largely driven by new products and volume traction.
• Revenues from India at Rs760cr, with a yoy growth of 13%, led by new products, improved realizations in base business and volume traction. Sequential growth is 2% due to improved realizations and launch of new products.
• Revenues from Europe at Rs310cr, with a yoy growth of 52%, primarily on account of new products and volume traction in base business partly offset by lower realizations as few key molecules entered tenders. Sequential growth is 12% due to improvement in the sales of the base business.
• Revenues from Rest of World (RoW) territories at Rs250cr, up 12% yoy, primarily driven by new products coupled with volume traction partly offset by price erosions in some of the key molecules. 

Commenting on the results, Co-Chairman and MD, GV Prasad said "The current quarter performance has been good across all our businesses and we achieved strong EBITDA margins. The profits were impacted due to trigger based impairment charge taken on a few products including gNuvaring. We continue to focus on execution and have made significant progress on quality systems and operational efficiencies".

Stock view:
Dr Reddys Laboratories Ltd is currently trading at Rs3,114.55, up by Rs86.5 or 2.86% from its previous closing of Rs3,028.05 on the BSE.
The scrip opened at Rs3,037.45 and has touched a high and low of Rs3,115.85 and Rs3,001.60 respectively.

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