Bangalore: Indian drug maker Dr Reddy’s Laboratories Ltd reported a 26% drop in its Q1FY09 net profit , worse than expectations, hit by its underperforming Germany-based Betapharm unit.
The Hyderabad-based firm, the only Indian drug maker listed in New York, said April-June consolidated net profit fell to Rs1.35 billion ($32 million) from Rs1.83 billion a year earlier.
A Reuters survey of seven brokerages had forecast net profit at Rs1.58 billion. Estimates ranged from Rs1.08 billion to Rs2 billion.
Betapharm, which Dr Reddy’s bought in 2006 for $572 million, has been a drag on earnings due to supply constraints and price falls. Dr Reddy’s is moving Betapharm’s manufacturing operations to India and other manufacturers within Europe.
Shares in Dr Reddy’s, which the market values at $2.6 billion, rose 13.5% during the June quarter, outperforming an eight percent rise in the healthcare index and 14% drop in the benchmark index.