Dr Reddys Laboratories has dipped 5% to Rs 3,305 on the BSE in intra-day trade after the drug maker reported a consolidated net profit of Rs 154 crore for the quarter ended June 30, 2016 (Q1FY17), against Rs 626 crore in the same quarter year ago.
Revenues declined by 14% to Rs 3,235 crore in June quarter against Rs 3,758 crore in the corresponding quarter of previous fiscal.
Analysts on an average had expected profit of Rs 466 crore on revenues of Rs 3,779 crore for the quarter.
GV Prasad, Co-chairman and CEO said, “The Company’s top and bottom lines impacted by a decline in volume growth, particularly in the US market and the loss of business in Venezuela.
We also faced a number of challenges in the quarter including price erosion and delayed in launches as a result of the warning letter, which significantly impacted company’s earnings. We remain focused on generating long term, sustainable growth, he added.
At 03:16 PM, the stock was down 4.4% at Rs 3,322 on the BSE, as compared to 0.54% decline in the S&P BSE Sensex. A combined 1.42 million shares changed hands on the counter on the BSE and NSE so far.