Dr.Reddy’s Labs declared a poor show for Q1FY18 performance. Its net profit fell by a sharp 57% (YoY) at Rs.66 crore on account of falling topline in USA and also in India. Though revenue rose 3% at Rs.3333 crore, it was mainly on account of better performance, up 34% from emerging markets, led by Russia. The Russian geography contributes more than 50% of emerging market sales – Russia alone grew 48%. Some new launches also helped offset the poor USA and India sales.

The company has stated, “Headwinds in the form of price erosion due to US customer consolidation continue, a lower contribution from new product launches in the US and the GST implementation in India also impacted our performance.”

North America business was lower by 4% at Rs 1495 crore and India dropped 10% to Rs 469 crore, mainly due to destocking on account of GST transition. Europe was up 28% at Rs 207.5 crore.