Dr Reddy’s Lab posts 76 pc growth in profit in third quarter

Hyderabad (Telangana) [India], January 26 (ANI): Dr Reddy’s Laboratories on Thursday posted a jump of 76.51 per cent to Rs 12,471 crore in net profit for the quarter ended December 2022, against Rs 7,065 crore during the corresponding quarter the previous year.

Its revenues grew 27.26 per cent to Rs 67,700 crore from Rs 53,197 crore in the year-ago period.

The company said its operating expenses surged 22.14 per cent to Rs 23,668 crore from Rs 19,377 crore in the year-ago period. The company said research and development expenses grew from Rs 4,159 crore to Rs 4,821 crore in the reviewed quarter.

The company said it had considered the uncertainty, relating to the continuing military conflict between Russia and Ukraine in assessing the recoverability of receivables, inventories, goodwill, intangible assets, investments and other assets.

“The outcome of the war is difficult to predict, and it could have an adverse impact on the macroeconomic environment,” the company added.

The pharma firm said the company’s supply chain had been impacted primarily in Russia and Ukraine, both in terms of higher freight costs and an increase in the lead time by suppliers. However, the Company said it was able to service its customers without any significant shortages or disruptions.

The company based on its judgments, estimates and assumptions including sensitivity analysis, said it expected to fully recover the carrying amounts of receivables, inventories, goodwill, intangible assets, investments and other assets.