Dr. Reddy's Laboratories reported a consolidated profit of Rs 570.8 crore for the quarter ending June 2021, down 1.5 percent from the previous quarter due to decreased operating profit and income. The profit for the quarter ending June 2020 was Rs 579.3 crore.
Dr Reddy Laboratories' stock fell 10% today after the company reported lower-than-expected quarterly earnings for Q1FY22 and the US Securities and Exchange Commission subpoenaed information for CIS geographies.
In Tuesday's afternoon trading, Dr Reddy's (DRL) shares tumbled 10% to Rs 4,868.25 a share, pushing down the Nifty Pharma index, which fell over 4%.
In Q1FY22, the Hyderabad-based firm's revenue from operations increased by 11.4 percent year on year to Rs 4,919.4 crore.
"Healthy sales growth drove the financial performance of the quarter," stated GV Prasad, Co-Chairman and MD.
He expects margins to improve in the coming quarters, owing to the scaling up of recent launches and increased efficiency.
"While we continue to enhance execution in our core business, we are also conducting pilots in areas like nutrition, Di tamer, and digital health and wellness, which have the potential to be future growth drivers," Prasad said.
During the quarter ended June 2021, the pharmaceutical services and active ingredients category recorded a 12% year-on-year reduction to Rs 754 crore.