Dr Reddy’s Q2 profit falls by 17%
Higher expenses pulled down the net profit of India’s second largest drug maker
By : DC Correspondent
Update: 2014-10-30 02:09 GMT
Hyderabad: Higher expenses pulled down the net profit of India’s second largest drug maker Dr Reddy’s Laboratories by nearly 17 per cent in the second quarter of fiscal 2015. The company reported Rs 574.1 crore in net profit for Q2FY15 compared to Rs 690.25 crore in the yearago period. Net income was Rs3,587.81 crore as against Rs3,357.45 crore in the yearago period, Dr Reddy’s Laboratories (DRL) said.
The dip in net profit was cause by higher expenses incurred for sales and general and administrative purposes, which zoomed by nearly 10 per cent. Expenses on resea-rch and development (R&D) stood at Rs411.3 crore, an increase of 37 per cent year-on-year. The company officials, however, are unperturbed. “The increase is in line with our planned scale-up in development activities,” the company said.
Dr Reddy’s said its global generics business revenues were at Rs2,890 crore, up nine per cent from the year-ago period driven mainly by India and rest of World territories, primarily Venez-uela, and North America. Revenues from India stood at Rs480 crore, up 14 per cent from the same period last fiscal.