dr reddy stock price: dr reddy net profit plunges 76% in fourth quarter

Mumbai: Drugmaker Dr Reddy’s Laboratories on Thursday reported a 70% increase in fourth-quarter sales from Russia, one of its biggest markets, despite the ongoing war and sanctions against Moscow by the West. Consolidated revenue from the Hyderabad-based company’s operations increased by 15% to ₹5,437 crore in the quarter ended March 31. Net profit fell 76% to ₹88 crore, however, after taking an impairment charge of ₹752 crore non-current assets and making a provision for an old litigation in Texas.

Sales from Russia at ₹686 crore were also up 45% sequentially, the company said. The market contributed about 13% to Dr. Reddy’s sales last quarter. For the financial year, Russia accounted for ₹2,088 crore of revenue, up 32% from the prior year. Dr. Reddy’s overall revenue for the year increased by 13% to ₹21,439 crore. The company said growth in Russia in Q4FY22 was driven by core business traction and new product launches. The company said it also benefited from the Russians stocking up on drugs in anticipation of war and the divestment of two non-essential brands.

Dr Reddy’s said his partnership with Russia’s RDIF fund to market the Sputnik vaccine in India would continue as the vaccine was produced locally.