Dr Reddy’s reports 30% dip in net profit in Q2 year-on-year
On 22 October, the company experienced an information security incident and consequently isolated the impacted IT services. This incident involved a ransom-ware attack.
Hyderabad: Hyderabad-based pharmaceutical company Dr Reddy’s Laboratories reported a 30 per cent year-on-year dip in its net profit at Rs 762.3 crore for the quarter ended September 30, 2020 from Rs 1,092.5 crore in the year-ago period. However, net profit went up 32 per cent quarter-on-quarter.
The company’s consolidated revenues saw a marginal growth of 2 per cent to Rs 4,897 crore in Q2 year-on-year while revenues went up 11 percent quarter-on-quarter. R&D expenses during the second quarter stood at Rs 436 crore, at 8.9 percent of the revenues. The expenses grew 19 per cent year-on-year.
From the half-yearly performance perspective, the company’s profit dipped to Rs 1,342 crore in the first half of the current fiscal (April-September) by 24 percent year-on-year. Its revenues during the first half of FY21 went up 8 per cent year-on-year to Rs 9,314 crore.
Commenting on the results, Dr Reddy’s co-chairman & MD, G V Prasad said “We are pleased to report continued growth across all the markets and improved productivity which is reflected in the healthy EBITDA margin and RoCE. Our research teams are working on several potential remedies for Covid in addition to the already launched products.”
Cyber attack
On 22 October, the company experienced an information security incident and consequently isolated the impacted IT services. This incident involved a ransom-ware attack.
“We promptly engaged leading outside cybersecurity experts, launched a comprehensive containment and remediation effort and investigation to address the incident. As of date, our investigation has not ascertained if any data breaches in the incident pertain to personally identifiable information stored in the company’s systems. Recovery and restoration of all applications and data is underway. All critical operations are being enabled in a controlled manner,” the company stated.
New CFO
In a separate announcement, the company said that Parag Agarwal will be joining the Company as chief financial officer (designate) on November 2, 2020. The Board of Directors at their meeting held on Wednesday, has approved his appointment as CFO (key managerial personnel) of the company effective December 1, 2020.
In a career spanning over 33 years, Parag has held several leadership positions, contributing significantly to the financial performance of his organisations. He is a qualified chartered accountant and company secretary. He joins Dr Reddy’s from Reckitt Benckiser PLC, where he was CFO-Health, based in London. Prior to his nine years stint at Reckitt, Parag was associated with organisations such as Unilever, GSK Consumer Healthcare & Genpact.
Saumen Chakraborty, president & CFO will retire effective December 1, 2020. In his 19 plus years career at Dr Reddy’s, Saumen led functions such as HR, Global Generics Operations, Quality, Finance, Legal and Digital & Process Excellence. Saumen will continue to be associated with the company as an advisor. He will also help Parag to transition effectively.
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