Drug major Dr Reddy’s Laboratories on Thursday reported an 85.6 per cent decline in its consolidated net profit to Rs 74.6 crore for the fourth quarter to March, mainly on account of a write-down of outstanding receivables from Venezuela.
The company had posted a net profit of Rs 518.8 crore in the same period of the previous fiscal, DRL said in a filing to BSE.
Consolidated net income from sales and services declined to Rs 3,756.2 crore for the quarter under review as against Rs 3,870.4 crore in the year-ago period.
Commenting on the results, Dr Reddy’s Co-chairman and CEO GV Prasad said: “It has been a challenging quarter for Dr Reddy’s. While there is a marginal decline in revenues, there is a greater impact on profitability.”
This is mainly due to provision, made as a matter of abundant precaution, to write down our outstanding receivables from Venezuela, he added.
For the fiscal ended March 2016, the company posted a net profit of Rs 2,001.3 crore as against Rs 2,217.9 crore in the same period a year earlier.
Consolidated net income from sales and services for the recently ended fiscal year stood at Rs 15,470.8 crore. It was Rs 14,818.9 crore in the previous fiscal.
The stock was trading at Rs 2,929 in the afternoon trade on BSE, up 2.08 per cent from its previous close.