Dr. Reddy’s Laboratories, on Wednesday, reported a 17 per cent dip in consolidated net profit at Rs.574 crore in the second quarter ended September 30 against Rs.690 crore in the same period last fiscal.
However, revenues improved by 7 per cent to Rs.3,587 crore at the said quarter, Chief Financial Officer Saumen Chakraborty said at a press conference here on Wednesday.
When asked about the erosion in margins, Chief Operating Officer Abhijit Mukherjee attributed it to the absence of ‘meaningful launches’ during the six months of the current financial year and also due to the price erosion as a consequence of its customers getting consolidated. Also, it was because approvals in North America were rather broadly slower than before, he pointed out.
“When customers get consolidated, there is always an erosion because we cannot sell the same product to different customers at different prices,” Mr. Mukherjee said, adding that he was confident of a better second half this fiscal than the first, with more product launches.
