Dr Reddy’s Q4 Net Falls 16%, Misses Street Es­ti­mates

The Economic Times - - Companies - OUR BUREAU

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.

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