The share price of Dr Reddy’s Laboratories fell more than 10 percent on Tuesday after the company reported weak earnings for the quarter ended June 2021.
The pharma major posted a net profit of Rs 570.8 crore in Q1FY22, registering a fall of 1.5 percent from Rs 579.3 crore, YoY.
Revenue from operations during the quarter grew 11.4 percent to Rs 4,919.4 crore from Rs 4,417.6 crore, YoY.
The performance at the operating level was also weak with the EBITDA decreasing 12.3 percent to Rs 1,018.8 crore from Rs 1,162.2 crore and EBITDA margin narrowing by 560 bps to 20.7 percent from 26.3 percent, on a year-on-year basis.
Dr Reddy’s said that it received a subpoena from American market regulator Securities and Exchange Commission (SEC) for production of documents concerning Commonwealth of Independent States (CIS) geographies.
The matter may result in government enforcement actions against the company in the US and foreign jurisdictions and could lead to civil and criminal sanctions under relevant laws, the company added.
The probability of such actions and outcomes is not reasonably ascertainable currently, it said.
At 2:05 pm, the stock was trading 10.57 percent lower at Rs 4,837.40 apiece on the BSE.