Pharmaceutical giant and drug manufacturer Dr Reddy’s Laboratories posted its Q4 FY22 results on May 19, 2022.
The company’s profit for the period is down 76% YoY (Year on Year) to Rs 87.5 crore in the quarter under review from Rs 362 last year. On a sequential basis, the profit for the period was down by a whopping 88% QoQ (Quarter on Quarter) to Rs 87.5 crore from Rs 706 crore in the year ago period.
Revenue up by 15% to Rs 5,436 crore from Rs 4,728 crore last year. On a QoQ basis, the revenue is up a meager 2% to Rs 5,436 crore from Rs 5,319.
The company’s numbers were largely short due to a decline in export, and slowdown in demand in the domestic market. Also a staggering rise in the cost of raw materials attributed to the weak March quarter. The cost of raw materials in Q4 FY22 was up to Rs 1,303 crore from Rs 1,072 crore in the previous quarter and Rs 1,026 crore in the year ago period.
The total expenses are up nearly 40% YoY and 20.5% QoQ to Rs 5,348 crore in the quarter under review. The impairment of non-current assets cost the company an expense of Rs 741 crore in Q4 FY22, an expense which was a mere Rs 4.7 crore in the previous quarter and Rs 1.5 crore in the year ago period.
Dr Reddy’s board has recommended a dividend of Rs 30 per equity share, subject to approval of the shareholders.
The stock is up about 0.77%.
Commenting on the results, Dr Reddy’s Co-Chairman and MD, GV Prasad said, that the company delivered healthy growth in revenue, though the profits were impacted by impairment charges. In spite of multiple external challenges, the core businesses performed well driven by an increase in market share, strong launches and productivity improvement. The company will continue to focus on growing its core business, invest in future growth drivers, and work towards greater integration of sustainability in our business.