Shares of Dr Reddy's Laboratories (DRL) plunged by almost 3.50 percent on the BSE on Tuesday after the company reported lower-than-expected revenues and net profit for the third quarter ended 31 December, 2015. 

The Hyderabad-based company reported consolidated net profit of Rs 579.20 crore for the third quarter, a marginal increase from Rs 574.50 crore in the year-ago period. The company's net profit was hit due to a foreign exchange loss of Rs 63.70 crore on account of "increasing risk of currency devaluation" in Venezuela, the company said in a regulatory filing to the BSE. 

Moreover, Dr Reddy's Lab said that the impact could spill over to its March quarter earnings as well. 

Consolidated revenues of the company stood at Rs 3,967.90 crore, up 3.24 percent from Rs 3,843.10 crore.

An average of estimates by analysts in a CNBC-TV18 poll had pegged the net profit at Rs 648.34 crore and revenues at Rs 4,007 crore. The company's domestic sales and US sales were likely to record growth but the one-time write off due to devaluation of stocks in Venezuela and Russia was expected to hit net profit.

Brokerage firm Angel Broking had estimated net profit of Rs 746 crore and revenues to come at Rs 4,420 crore.

The company said it is evaluating its current arrangements with the Venezulean government to facilitate the payments related to import of pharma products at the CENCOEX preferential rate 6.3 VEF per US dollar. 

"The company will fully consider all the developments facts and circumstances during the three months ending 31 March, 2016, in evaluating the appropriate translate rate to be applied. If the facts and circumstances support a conclusion that the CENCOEX rate is no longer appropriate, it could have a significant impact on the consolidated financial statements of the company," it said. 

In its analysis of the results, Angel Broking said, "The lower than expected sales performance is on back of the Emerging market (Rs 639.9 crore) which dipped by 28.0% YoY. Russia with sales of Rs 310 crore declined by 21% YoY, on back of deprecation of rubble."

"The key regions -- USA (Rs 1941.7 crore) posted a robust growth of 18% YoY, Europe (Rs 194 crore) posted a YoY growth of 14% and India did sales of Rs 581crore, a YoY growth of 34% (aided by the UCB acquired brands). Overall generic segment posted a sales growth of 7% YoY, while PSAI segment posted a sales de-growth of 17%," the brokerage said. 

Shares of Dr Reddy's Lab were trading at Rs 2,966.50 at around 2.20 pm, down 3.39 percent from its Monday close.