Dr Reddy’s set to focus on Sputnik shots, Covid drugs

New Delhi, May 14: Dr Reddy’s Laboratories on Friday reported a 29 per cent decline in consolidated net profit at `557 crore for the fourth quarter ended March 31, 2021.

The Hyderabad-based drug major had posted a net profit of `781 crore in the January-March period of 2019-20.

Net sales, however, rose to `4,608 crore in the quarter under review as compared with `4,336.1 crore in the fourth quarter of 2019-20, Dr Reddy’s Laboratories said in a regulatory filing.

For 2020-21 fiscal year, the company posted a consolidated net profit of `1,952 crore as against `2,026 crore in 2019-20.

Net sales increased to `18,420 crore during the last fiscal year as compared with `16,357 crore in 2019-20.

“In FY 21, we continued to grow across all our businesses, enhance productivity and strengthen our development pipeline,” Dr Reddy’s Laboratories co-chairman and MD G.V. Prasad said.

The company is prioritising its efforts to launch Sputnik V vaccine across India while working on the development and commercialisation of several drugs for the treatment of mild to severe Covid-19 infections, he added.

The drug maker said it has commenced a detailed investigation into an anonymous complaint which alleges that healthcare professionals in Ukraine and potentially in other countries were provided with improper payments by or on behalf of the company in violation of US anti-corruption laws.

A legal firm is conducting the investigation at the instruction of a committee of the company’s board, it added.

Dr Reddy’s noted that it has disclosed the matter to the US Department of Justice, Securities and Exchange Commission and Securities Exchange Board of India (Sebi).

“While the matter may result in government enforcement actions against the company in the United States and/or foreign jurisdictions, which could lead to civil and criminal sanctions under relevant laws, the probability of such action and the outcome are not reasonably ascertainable at this time,” it added.

The company said its board has recommended a final dividend of `25 per share of `5 face value (500 per cent) for financial year 2020-21.