Dr Reddy's unit gets penalty of Rs 28.7 lakh from Kazakhstan authority

Dr Reddy's Laboratories on Thursday said the Kazakhstan revenue authority has levied a penalty of Rs 28.7 lakh on its subsidiary.

The Department of State Revenue, Bostandyk district of Almaty, Kazakhstan has imposed the penalty on Dr Reddy's Laboratories Kazakhstan LLP towards disallowance of claim of certain expenses by the tax authorities for the calendar year 2021, the drug firm said in a regulatory filing.

The order levies a penalty of KZT 17,597,212 (Rs 2.87 million), it added.

"Based on our evaluation, there is no material impact on the financials, operations, or other activities of the company," the Hyderabad-based drug firm said. 

Dr. Reddy's Laboratories Reports 15 per cent Decline in Net Profit for Q2 FY25, Revenue Surges 17 per cent.

Dr. Reddy's Laboratories has reported a 15 per cent decline in its consolidated net profit for the second quarter of FY25, amounting to Rs 1,255 crore, compared to Rs 1,480 crore in the same period last year. Despite the drop in profit, the pharmaceutical giant saw a significant 17 per cent year-on-year increase in revenue from operations, reaching Rs 8,016 crore.

The company’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rose by 5 per cent, totaling Rs 2,280 crore, with margins improving slightly to 28.4 per cent.

The revenue growth was mainly driven by Dr. Reddy’s global generics business, which reported earnings of Rs 7,160 crore for the quarter, reflecting a 17 per cent increase compared to the previous year. This was supported by stronger sales volumes and the launch of new products across various markets.

Notably, the company’s performance in North America was particularly strong, with revenue from the region increasing by 17 per cent to Rs 3,730 crore. Despite facing some price erosion, the market saw positive growth driven by higher volumes and new product introductions.

Dr. Reddy's continues to focus on expanding its global footprint and product portfolio, positioning itself for continued growth in the coming quarters.