Dr Reddy’s Q4 Net Falls 16%, Misses Street Estimates
India’s second-largest drugmaker by sales posted a nearly 16% decline in fourth-quarter net profit at .` 481 crore, largely due to higher expenses and absence of one-time income, belying street expectations. Sales grew by 4% to .` 3,481 crore. The otherwise buoyant markets reacted sharply to the results, sending the stock tumbling by nearly 4.4% to .` 2,603 on the National Stock Exchange. “The weak quarterly numbers both in terms of sales and profits are quite disappointing,” said CLSA analyst Hemant Bakhru, observing that he was optimistic about the potential benefits of significantly higher R&D spending during the year and the pipeline of products. Markets were also surprised by revamp at the top level with GV Prasad making way for his brother-in-law Satish Reddy as the new chairman. The post of MD that Reddy held has been assigned to Prasad, who will also be cochairman and chief executive. The post of chief operating offer was handed to Abhijit Mukherjee, the president for global generics.