Dr Reddy’s Laboratories co-chairman and CEO G.V. Prasad (centre), CFO Saumen Chakraborty (left) and COO Abhijit Mukherjee during a press meet to announce the company’s fourth quarter financial results in Hyderabad. (Photo: Asian Age)
Dr Reddy’s Laboratories co-chairman and CEO G.V. Prasad (centre), CFO Saumen Chakraborty (left) and COO Abhijit Mukherjee during a press meet to announce the company’s fourth quarter financial results in Hyderabad. (Photo: Asian Age)
Dr Reddy’s Laboratories, India’s second largest drug maker by sales, posted a lower-than-expected quarterly profit owing to a write-off caused by the economic crisis in Venezuela.
The Hyderabad-based company reported a consolidated net profit of Rs 74.6 crore for Q4FY16, which is an 85.6 per cent decline compared to Rs 518.8 crore in the yearago quarter.
The decline is mainly due to provision, made as a matter of abundant precaution, to write down our outstanding receivables from Venezuela, said DRL co-chairman G.V. Prasad.
The Venezuelan government had barred companies, including DRL, from recovering any money beyond the $4 million it has already received. With oil prices falling to $46 a barrel, Venezuela is facing public unrest over food scarcity and power cuts.
The company’s consolidated net income has declined marginally to Rs 3,756 crore for Q4FY16 as against Rs 3,870.4 crore in the year-ago period.
