UPDATE 1-India's Dr Reddy's expects emerging markets profit hit

martes 9 de febrero de 2016 10:26 GYT
 

* Q3 profit 5.79 bln rupees vs 6.55 bln expected by analysts

* Emerging markets sales down 28 pct

* Shares fall as much as 4 percent in Mumbai (Adds management comments from conference call)

By Zeba Siddiqui

MUMBAI, Feb 9 (Reuters) - India's second-largest drugmaker, Dr Reddy's Laboratories Ltd, expects its earnings to remain under pressure in the fourth quarter due to currency volatility in markets such as Russia and Venezuela, its chief financial officer said.

A 28 percent slump in emerging market sales in the quarter ended Dec. 31 pushed Dr Reddy's total profit for the period below analysts' estimates, driving its shares down to close 4 percent lower on Tuesday.

Dr Reddy's, run by the Indian billionaire GV Prasad, said net earnings for the quarter were 5.79 billion rupees ($85 million), up from 5.75 billion rupees a year earlier. Analysts had on average expected 6.55 billion rupees.

While the company has not disclosed how much Russia and Venezuela contribute to its profit, business in both markets has been a drag on the firm's earnings for several quarters. Sales declines overshadowed a 7 percent rise in third-quarter revenue from its largest market, the United States, and a 34 percent rise in sales from India.

The company has yet to get about $60 million repatriated from Venezuela, CFO Saumen Chakraborty told analysts.   Continuación...