Dr Reddy's Laboratories, a prominent pharmaceutical company, is expected to reduce its personnel costs by over 25 per cent as part of a big downsizing plan.
According to a Business Standard report, several senior executives have been asked to retire, including many employees earning above Rs 1 lakh per year.
Employees aged 50 to 55 working in the drugmaker's research and development (R&D) division have also reportedly been given voluntary retirement. Some high-paid employees from other departments have already been asked to quit.
Dr Reddy's Laboratories reported a 2 per cent year-on-year growth in consolidated profit after tax (PAT) to Rs 1,413.3 crore in the third quarter of 2024.
The PAT in Q3 of the previous year was Rs 1,378.9 crore.
The quarter's income from operations was Rs 8,358.6 crore, a 16 per cent increase over the previous year's Rs 7,214.8 crore in December 2023.
Revenues from the recently acquired Nicotine Replacement Therapy (NRT) portfolio, as well as revenues from India and Emerging Markets, drove the growth, according to the Business Standard.
In Q3, the global generics segment sales increased by 17 per cent year on year, while the pharmaceutical services and active ingredients (API) segment had a 5 per cent gain.
Earnings before interest, tax, depreciation, and amortisation were Rs 2,298.2 crore, compared to Rs 2,110.7 crore last year and Rs 2,280.3 crore in the previous quarter of FY25.
