Impairment hit: Dr Reddy s PAT at 20 Cr in Q3

(Eds: adding details) Hyderabad, Jan 29 (PTI):Dr.Reddy's LaboratoriesLimited's Profit After Tax for the quarter ended on December31 stood at Rs 19.8 crore compared to a loss of Rs 569.7crorein the second quarter in the last fiscal, a seniorcompany official said on Friday.

Speaking to reporters after announcing the results, ParagAgarwal, Chief Financial Officer of DRL, said the consolidatedrevenues for the quarter under discussion was up by 12 percent at Rs 4,929.6 crore.

It was Rs 4,383.8 crore in the third quarter FY20.

He said the company had an impairment charge of Rs 597crore in the third quarter, which has impacted profits.

Thecompany has grown in double digits in revenues in sixout of the last eight quarters, he said.

''These (profits) were impacted by an impairment chargethat we have taken during the quarter of Rs 597 crore.

This is in compliance of accounting standards.

It was triggered by certain events.

And it largely pertains to certain assets includingNuvaring that we have bought from Teva about five years back,''Agarwal said.

Besides Rs 320 crore impairment charges for Nuvaring,considering the current market dynamics, the company has takenan additional impairment charge of Rs 280 crore on theintangibles pertaining to other products, he said.

Revenues from Global generics grew by 13 per cent at Rs4,075 crore, primarily driven by new product launches andintegration of the acquired portfolio from Wockhardt in India.

The volume growth in the base business was largely offsetby price erosion, Agarwal said.

Driven by new products launches, increase in volumes ofthe base business and a favorable forex rate, which waspartially offset by price erosion, revenues from North Americawas at Rs 1,740 crore during Q3.

Indian revenues grew by 26 per cent Year-on-Year at Rs960 crore in the quarter on account of income from theacquired portfolio of Wockhardt and contribution from newproduct launches.

Income from Europe and Emerging Markets stood at Rs 410crore and 960 crore while Pharmaceutical Services and ActiveIngredients contributed Rs 700 crore during the quarter underdiscussion.

The drug maker expects to invest a total Rs 1,000 croretowards capex in the current year.

Replying to a query, Erez Israeli, CEO Dr Reddys, saidthe company is looking to expand into more markets and hopingto participate in Production Linked IncentiveScheme(PLI) ofthe centre.