On a consolidated basis, Dr. Reddy's Laboratories posted a net profit of Rs 19.80 crore in Q3 FY21 as against a net loss of Rs 569.7 crore in Q3 FY20.The drug maker's consolidated revenue increased 12% year on year to Rs 4930 crore in Q3 FY21. Dr. Reddy's registered a profit before tax of Rs 284.3 crore in Q3 FY21 compared with pre-tax loss of Rs 527.40 crore posted in the same period last year. Tax expense surged to Rs 264.5 crore in Q3 FY21 as against Rs 42.30 crore in Q3 FY20.
The company reported impairment charge of about Rs 600 crore during the quarter. In January 2021 there has been an additional generic launch for the product Nuvaring, which has led to considerable erosion in the value of this product for the company, and accordingly the firm took an impairment charge of Rs 320 crore. In addition, considering the current market dynamics, the firm took an additional impairment charge of Rs 280 crore on the intangibles pertaining to other products. The firm had an impairment charge of Rs 1320 crore in Q3 FY20 and Rs 78.1 crore in Q2 FY21.