The company said the overall growth in global generics was on account of volume traction in the base business, new product launches, and was aided by favorable forex rates; however, it was partially offset due to price erosion.
Analysts on an average had expected a profit of Rs 496 crore on revenues of Rs 4,170 crore for the quarter.
EBITDA (earnings before interest, taxes, depreciation, and amortisation) margin declined to 26.3 per cent from 29.5 per cent in the previous year quarter. However, it improved sequentially from 22.6 per cent in the March quarter of the fiscal year 2019-20 (Q4FY20).
The management said, while the sales volume were impacted in some of the markets
due to lower prescriptions generated and fall in patient footfalls in pharmacies/ clinics due to Covid-19, the pricing environment was relatively stable, new product launches continued and depreciation of rupee against the US dollar and Euro supported the business.
At 01:58 pm, the stock was trading 3.8 per cent higher at Rs 4,218 on the BSE, as compared to a 0.67 per cent rise in the S&P BSE Sensex. The trading volumes on the counter nearly doubled with a combined 2.3 million shares changing hands on the NSE and BSE.