Full Press Release Details
| DR. REDDY S LABORATORIES LTD. 8-2-337, Road No. 3, Banjara Hills, Hyderabad - 500034. Telangana, India. | CONTACT | ||
| INVESTOR RELATIONS | MEDIA RELATIONS | ||
| KEDAR UPADHYE kedaru@drreddys.com (Ph: +91-40-66834297) | CALVIN PRINTER calvinprinter@drreddys.com (Ph: +91-40- 49002121) |
Dr. Reddy s Q1 FY17 Financial Results
Hyderabad, India, July 26, 2016: Dr. Reddy s Laboratories Ltd. (BSE: 500124 | NSE:
DRREDDY | NYSE: RDY) today announced its consolidated financial results for the first quarter ended June 30, 2016 under International Financial Reporting Standards (IFRS).
Q1 FY17: Key Highlights
Co-chairman and CEO, GV Prasad said We have come through a very difficult first quarter, with our top and bottom lines impacted by a
decline in volume growth, particularly in the US market and the loss of business in Venezuela. We also faced a number of challenges in the quarter including price erosion and delayed launches as a result of the warning letter, which significantly
impacted our earnings. However, we continue to take actions that focus on remediation, strengthening our quality systems and executing on our strong product pipeline. We remain focused on generating long term, sustainable growth.
Dr. Reddy s Laboratories Limited and Subsidiaries
Consolidated Income Statement
| Particulars | Q1 FY 17 | Q1 FY 16 | Growth % | |||||||||||||||||||||||||
| ($) | (Rs.) | % | ($) | (Rs.) | % | |||||||||||||||||||||||
| Revenues | 479 | 32,345 | 100.0 | 557 | 37,578 | 100.0 | (14 | ) | ||||||||||||||||||||
| Cost of revenues | 210 | 14,167 | 43.8 | 217 | 14,631 | 38.9 | (3 | ) | ||||||||||||||||||||
| Gross profit | 269 | 18,178 | 56.2 | 340 | 22,947 | 61.1 | (21 | ) | ||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||
| Selling, general & administrative expenses | 182 | 12,284 | 38.0 | 163 | 10,973 | 29.2 | 12 | |||||||||||||||||||||
| Research and development expenses | 71 | 4,802 | 14.8 | 65 | 4,387 | 11.7 | 9 | |||||||||||||||||||||
| Other operating expense / (income) | (1 | ) | (96 | ) | (0.3 | ) | (2 | ) | (125 | ) | (0.3 | ) | (23 | ) | ||||||||||||||
| Results from operating activities | 18 | 1,188 | 3.7 | 114 | 7,712 | 20.5 | (85 | ) | ||||||||||||||||||||
| Finance expense / (income), net | (7 | ) | (445 | ) | (1.4 | ) | (3 | ) | (216 | ) | (0.6 | ) | 106 | |||||||||||||||
| Share of (profit) of equity accounted investees, net of income tax | (1 | ) | (74 | ) | (0.2 | ) | (1 | ) | (49 | ) | (0.1 | ) | 49 | |||||||||||||||
| Profit before income tax | 25 | 1,707 | 5.3 | 118 | 7,977 | 21.2 | (79 | ) | ||||||||||||||||||||
| Income tax expense | 7 | 444 | 1.4 | 25 | 1,720 | 4.6 | (74 | ) | ||||||||||||||||||||
| Profit for the period | 19 | 1,263 | 3.9 | 93 | 6,257 | 16.6 | (80 | ) | ||||||||||||||||||||
| Diluted EPS | 0.11 | 7.43 | 0.54 | 36.58 | (80 | ) |
| Particulars | Q1 FY 17 | Q1 FY 16 | ||||||||||||||
| ($) | (Rs.) | ($) | (Rs.) | |||||||||||||
| Profit before tax | 25 | 1,707 | 118 | 7,977 | ||||||||||||
| Interest (income) / expense net* | (6 | ) | (409 | ) | (5 | ) | (304 | ) | ||||||||
| Depreciation | 26 | 1,760 | 23 | 1,519 | ||||||||||||
| Amortization | 14 | 921 | 11 | 749 | ||||||||||||
| EBITDA | 59 | 3,979 | 147 | 9,941 | ||||||||||||
| EBITDA (% to sales) | 12.3 | 26.5 |
Key Balance Sheet Items
| Particulars | As on 30 th June 16 | As on 31 st March 16 | ||||||||||||||
| ($) | (Rs.) | ($) | (Rs.) | |||||||||||||
| Cash and cash equivalents and Other current Investments | 379 | 25,578 | 592 | 39,955 | ||||||||||||
| Trade receivables | 526 | 35,499 | 612 | 41,306 | ||||||||||||
| Inventories | 414 | 27,922 | 379 | 25,578 | ||||||||||||
| Property, plant and equipment | 814 | 54,951 | 799 | 53,961 | ||||||||||||
| Goodwill and Other Intangible assets | 419 | 28,284 | 365 | 24,644 | ||||||||||||
| Loans and borrowings (current & non-current) | 557 | 37,632 | 496 | 33,513 | ||||||||||||
| Trade payables | 188 | 12,723 | 182 | 12,300 | ||||||||||||
| Equity | 1,690 | 1,14,112 | 1,901 | 1,28,336 |
Revenue Mix by Segment
| Particulars | Q1 FY 17 | Q1 FY 16 | Growth % | |||||||||||||||||||||||||
| ($) | (Rs.) | % | ($) | (Rs.) | % | |||||||||||||||||||||||
| Global Generics | 395 | 26,638 | 82 | 459 | 30,961 | 82 | (14 | ) | ||||||||||||||||||||
| North America | 15,523 | 18,516 | (16 | ) | ||||||||||||||||||||||||
| Europe* | 1,615 | 1,912 | (16 | ) | ||||||||||||||||||||||||
| India | 5,223 | 4,756 | 10 | |||||||||||||||||||||||||
| Emerging Markets # | 4,277 | 5,777 | (26 | ) | ||||||||||||||||||||||||
| PSAI | 70 | 4,692 | 15 | 83 | 5,614 | 15 | (16 | ) | ||||||||||||||||||||
| North America | 643 | 580 | 11 | |||||||||||||||||||||||||
| Europe | 1,947 | 2,350 | (17 | ) | ||||||||||||||||||||||||
| India | 372 | 670 | (44 | ) | ||||||||||||||||||||||||
| Rest of World | 1,730 | 2,014 | (14 | ) | ||||||||||||||||||||||||
| Proprietary Products & Others | 15 | 1,015 | 3 | 15 | 1,003 | 3 | 1 | |||||||||||||||||||||
| Total | 479 | 32,345 | 100 | 557 | 37,578 | 100 | (14 | ) |
from Global Generics segment are at Rs.26.6 billion, year-on-year decline of 14%; decline primarily on account of lower contribution from North America and loss of sales from Venezuela.
As of 30th June, 2016, cumulatively 78 generic filings are pending
for approval with the USFDA (76 ANDAs and 2 NDAs under 505(b)(2) route). Of these 76 ANDAs, 50 are Para IVs out of which we believe 18 have First to File status.
Pharmaceutical Services and Active Ingredients (PSAI)
Proprietary Products (PP)
Subsequent to the approvals received from USFDA for 2 NDAs, the company had launched these two molecules Zembrace Sym
Touch (Suma 3 mg) injection and Sernivo (betamethasone dipropionate) Spray, 0.05% in the US. The performance of these two molecules is gradually picking up traction.
Income Statement Highlights:
As per the requirements of Section 133 of the Companies Act, 2013 the company has adopted IND-AS wef 1st April 2016. Consolidated results for the quarter as reported under IND-AS is attached in Annexure 1.
Earnings Call Details (06.30 pm IST, July 26, 2016)
The Company will host an earnings call at 06.30 pm IST on July 26, 2016, to discuss the performance and answer any
questions from participants. This call will be accessible through an audio dial-in and a web-cast.
Participants can dial-in on the numbers below
| Primary number: | 91 22 3960 0616 | |||
| Secondary number: | 91 22 6746 5826 | |||
| International Toll Free Number | USA | 18667462133 | ||
| UK | 08081011573 | |||
| Singapore | 8001012045 | |||
| Hong Kong | 800964448 |
| Playback of call: | 91 22 3065 2322, 91 22 6181 3322 | |
| Conference ID: | 375# | |
| Web-cast | More details will be provided through our website, www.drreddys.com |
Transcript of the event will be available at www.drreddys.com. Playback will be
available for a few days.
About Dr. Reddy s: Dr. Reddy s Laboratories Ltd. (BSE: 500124, NSE: DRREDDY, NYSE:
RDY) is an integrated pharmaceutical company, committed to providing affordable and innovative medicines for healthier lives. Through its three businesses - Pharmaceutical Services & Active Ingredients, Global Generics and Proprietary
Products Dr. Reddy s offers a portfolio of products and services including APIs, custom pharmaceutical services, generics, biosimilars and differentiated formulations. Our major therapeutic areas of focus are gastrointestinal,
cardiovascular, diabetology, oncology, pain management and dermatology. Dr. Reddy s operates in markets across the globe. Our major markets include USA, India, Russia and other CIS countries. For more information, log on to:
Disclaimer: This press release may include statements of future expectations and other forward-looking statements
that are based on the management s current views and assumptions and involve known or unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such
statements. In addition to statements which are forward-looking by reason of context, the words may , will , should , expects , plans , intends , anticipates ,
believes , estimates , predicts , potential , or continue and similar expressions identify forward-looking statements. Actual results, performance or events may differ materially from those in
such statements due to without limitation, (i) general economic conditions such as performance of financial markets, credit defaults , currency exchange rates , interest rates , persistency levels and frequency / severity of insured loss events
(ii) mortality and morbidity levels and trends, (iii) changing levels of competition and general competitive factors, (iv) changes in laws and regulations and in the policies of central banks and/or governments, (v) the impact of
acquisitions or reorganisation , including related integration issues.
The company assumes no obligation to update any information contained herein.
DR. REDDY S LABORATORIES LIMITED
STATEMENT OF UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER ENDED 30 JUNE 2016
All amounts in Indian Rupees millions, except share data and where otherwise stated
| Quarter ended | Year ended | |||||||||||||||||
| Sl. No. | Particulars | 30.06.2016 | 31.03.2016 | 30.06.2015 | 31.03.2016 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||
| 1 | Income from operations | |||||||||||||||||
| a) Net sales / income from operations (Net of excise duty) | 31,635 | 36,735 | 37,009 | 151,633 | ||||||||||||||
| b) License fees and service income | 488 | 610 | 363 | 2,233 | ||||||||||||||
| c) Other operating income | 102 | 389 | 150 | 975 | ||||||||||||||
| Total income from operations (net) | 32,225 | 37,734 | 37,522 | 154,841 | ||||||||||||||
| 2 | Expenses | |||||||||||||||||
| a) Cost of materials consumed | 5,742 | 5,430 | 6,330 | 25,002 | ||||||||||||||
| b) Purchase of traded goods | 3,282 | 2,585 | 3,199 | 11,743 | ||||||||||||||
| c) Changes in inventories of finished goods, work-in-progress and stock-in-trade | (1,793 | ) | 943 | (1,050 | ) | (957 | ) | |||||||||||
| d) Employee benefits expense | 8,050 | 7,909 | 7,502 | 31,174 | ||||||||||||||
| e) Selling expenses | 3,268 | 2,685 | 3,130 | 11,811 | ||||||||||||||
| f) Depreciation and amortisation | 2,436 | 2,767 | 2,033 | 9,389 | ||||||||||||||
| g) Other expenditure | 9,774 | 13,365 | 8,541 | 40,215 | ||||||||||||||
| Total expenses | 30,759 | 35,684 | 29,685 | 128,377 | ||||||||||||||
| 3 | Profit before other income and finance costs (1 - 2) | 1,466 | 2,050 | 7,837 | 26,464 | |||||||||||||
| 4 | Other income | 670 | 850 | 757 | 2,950 | |||||||||||||
| 5 | Profit before finance costs (3 + 4) | 2,136 | 2,900 | 8,594 | 29,414 | |||||||||||||
| 6 | Finance costs | 148 | 170 | 281 | 826 | |||||||||||||
| 7 | Profit before tax (5 - 6) | 1,988 | 2,730 | 8,313 | 28,588 | |||||||||||||
| 8 | Tax expense | 526 | 1,563 | 1,888 | 7,511 | |||||||||||||
| 9 | Net profit for the period / year (7 - 8) | 1,462 | 1,167 | 6,425 | 21,077 | |||||||||||||
| 10 | Share of profit of equity accounted investees, net of tax | 73 | 59 | 49 | 229 | |||||||||||||
| 11 | Net Profit after taxes and share of profit of associates (9 + 10) | 1,535 | 1,226 | 6,474 | 21,306 | |||||||||||||
| 12 | Other comprehensive income | 147 | (1,408 | ) | 779 | (370 | ) | |||||||||||
| 13 | Total comprehensive income | 1,682 | (182 | ) | 7,253 | 20,936 | ||||||||||||
| 14 | Paid-up equity share capital (face value Rs. 5/- each) | 828 | 853 | 853 | 853 | |||||||||||||
| 15 | Reserves | 128,842 | ||||||||||||||||
| 16 | Earnings per share (in Rupees) per Rs. 5/- share | |||||||||||||||||
| - Basic | 9.06 | 7.19 | 37.99 | 124.93 | ||||||||||||||
| - Diluted | 9.03 | 7.17 | 37.86 | 124.54 | ||||||||||||||
| (Not annualised) | (Not annualised) | (Not annualised) |
See accompanying notes to the financial results
| Quarter ended | Year ended | |||||||||||||||||
| Sl. No. | Particulars | 30.06.2016 | 31.03.2016 | 30.06.2015 | 31.03.2016 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||
| Segment wise revenue and results: | ||||||||||||||||||
| 1 | Segment revenue: | |||||||||||||||||
| a) Pharmaceutical Services and Active Ingredients | 6,306 | 7,461 | 5,691 | 28,255 | ||||||||||||||
| b) Global Generics | 26,459 | 30,740 | 32,026 | 127,671 | ||||||||||||||
| c) Proprietary Products | 623 | 645 | 697 | 2,659 | ||||||||||||||
| d) Others | 399 | 381 | 312 | 1,703 | ||||||||||||||
| Total | 33,787 | 39,227 | 38,726 | 160,288 | ||||||||||||||
| Less: Inter segment revenue | 1,562 | 1,493 | 1,204 | 5,447 | ||||||||||||||
| Add: Other unallocable income | ||||||||||||||||||
| Total income from operations | 32,225 | 37,734 | 37,522 | 154,841 | ||||||||||||||
| 2 | Segment results: | |||||||||||||||||
| Gross profit from each segment | ||||||||||||||||||
| a) Pharmaceutical Services and Active Ingredients | 1,139 | 1,195 | 1,341 | 4,954 | ||||||||||||||
| b) Global Generics | 16,339 | 19,435 | 20,916 | 84,427 | ||||||||||||||
| c) Proprietary Products | 525 | 533 | 577 | 2,217 | ||||||||||||||
| d) Others | 183 | 121 | 121 | 706 | ||||||||||||||
| Total | 18,186 | 21,284 | 22,955 | 92,304 | ||||||||||||||
| Less: Other un-allocable expenditure / (income), net | 16,198 | 18,554 | 14,642 | 63,716 | ||||||||||||||
| Total profit before tax | 1,988 | 2,730 | 8,313 | 28,588 |
Global Generics includes operations of Biologics business. Inter-segment revenue represents
sale from Pharmaceutical Services and Active Ingredients to Global Generics at cost.
Segmental Capital employed
As certain assets of the Company including manufacturing facilities, development facilities and treasury assets and liabilities are often
deployed interchangeably across segments, it is impractical to allocate these assets and liabilities to each segment. Hence, the details for capital employed have not been disclosed in the above table.
| Amounts in Indian Rupees millions | ||||
| Net profit under previous GAAP | 6,122 | |||
| Impact on account of measuring investments at fair value through profit and loss | 200 | |||
| Recognition of intangible assets not eligible for recognition under Previous GAAP | (4 | ) | ||
| Reversal of goodwill amortised under Previous GAAP | 99 | |||
| Difference in measurement of employee share based payments | 22 | |||
| Impact on current and deferred taxes | 52 | |||
| Others | (17 | ) | ||
| Net profit for the period under Ind AS | 6,474 |
By order of the Board
For Dr. Reddy s Laboratories Limited
| Place: Hyderabad | G V Prasad | |
| Date: 26 July 2016 | Co-Chairman & Chief Executive Officer |