Dr. Reddy's Quarter(Q4) Result Update:

Dr. Reddy's Laboratories reported 8 per cent annual growth in its consolidated net profit for the January-March on the back of strong growth in its revenues.The company had posted a net profit of Rs 481.60 crore for the corresponding period of previous fiscal year.Dr Reddy's Labs  has posted a consolidated net profit of Rs 519 crore in the quarter ended March 2015 up 7.8 percent from Rs 481.6 crore in the corresponding quarter last fiscal. During the period, total income was up 11.2 percent at Rs 3870 crore versus Rs 3481 crore (Y-o-Y) on consolidated basis

Dr. Reddy's Laboratories reported a net profit of Rs 519 crore over sales of Rs 3,870 crore in the quarter ended March 31, 2015. The pharma major had reported a net profit of Rs 482 crore on sales of Rs 3,480 crore in the corresponding quarter of last fiscal.   Its net profit at Rs 590 crore over sales of Rs 3,868 crore.

Dr. Reddy's net profit in the March quarter was impacted by forex losses of Rs 84.3 crore high research & development (R&D) expenses which came in at Rs 514 crore against Rs 398 crore year-on-year.

Operating profit (EBITDA) of the company came in at Rs 810 crore against Rs 781 crore year-on-year and its operating margin, a major of profitability declined 80 basis points annually to 21 per cent. Analysts had estimated its EBITDA margin at 22 per cent.

The loss was incurred due to net monetary assets in Venezuela as the Government had modified its currency exchange systems. Overall, the company faced currency volatility in some emerging markets. However, it had to bear lower tax expense at Rs 74.2 crore in the quarter against Rs 125.2 crore year-on-year. Consolidated operating profit was at Rs 612 crore versus Rs 585.6 crore (Y-o-Y) while operating margin was at 15.8 percent compared to 16.8 percent (Y-o-Y). Margins were also impacted due to higher research and development (R&D) costs. R&D expenses were up 29 percent Y-o-Y to Rs 514.4 crore versus Rs 398.5 crore (was up 45 percent Y-o-Y in Q3). It also contains an impairment loss of Rs 9.5 crore in R&D. For the full year, R&D expenses were up 41 percent at Rs 1740 crore Y-o-Y which is 11.8 percent of revenue compared to 9.4 percent in FY14.

In a separate filing, Dr Reddy's Laboratories said the Board has recommended a final dividend of Rs 20 (400 per cent) per equity share of Rs 5 face value, for the financial year. The company has declared a dividend of Rs 20 per share.