Dr Reddy's shares tank nearly 9 per cent to hit 52-week low post Q1FY27 earnings announcement

Representational Image. File pic.

Shares of Dr Reddy's Laboratories Ltd on Thursday tanked nearly 9 per cent after the firm reported a 69.2 per cent decline in consolidated net profit in the June quarter.

The stock declined 8.70 per cent to Rs 1,080.05 -- a 52-week low -- on the BSE.

At the NSE, the stock tanked 6.91 per cent to reach the 52-week low of Rs 1,101.

Dr Reddy's Laboratories Ltd on Wednesday reported a 69.2 per cent decline in consolidated net profit to Rs 434.8 crore in the June quarter, hit by the adverse impact of provisions related to the semaglutide ingredients issue and a dip in generics revenue in North America.

The company had posted a consolidated net profit of Rs 1,409.6 crore in the year-ago period, Dr Reddy's Laboratories Ltd said in a regulatory filing.

Its consolidated revenue in the first quarter of the current fiscal year stood at Rs 8,070.5 crore against Rs 8,545.2 crore in the year-ago period, it added.

Total expenses during the quarter stood at Rs 3,375.6 crore compared to Rs 3,115.2 crore a year earlier, the company said.

Commenting on the results, Dr Reddy's Laboratories Co-Chairman and MD GV Prasad said, "Our Q1 FY27 performance reflected the expected transition beyond lenalidomide revenues, along with an unexpected impact related to semaglutide API".

He, however, said the company's underlying base business continued to deliver healthy double-digit growth across all key geographies.

"Our focus remains on improving the health of our base business through disciplined execution and operational excellence, while building our future pipeline of peptides, biosimilars, and innovative assets to deliver long-term growth," Prasad added.

The company said in the first quarter, it had an adverse impact of a provision of Rs 239.7 crore towards inventory and other associated costs related to semaglutide's active pharmaceutical ingredient (API).

Certain batches of semaglutide were found to be out of specification due to an issue associated with the API used in the product, the company said, adding that "appropriate measures are being taken to ensure product quality and resumption of supplies".

In the first quarter, global generics revenue slipped 5 per cent to Rs 7,199.3 crore from Rs 7,562 crore in the corresponding quarter of the last fiscal year.

This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever.