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 | ||
| SAUNAK SAVLA saunaks@drreddys.com (Ph: +91-40-4900 2135) | CALVIN PRINTER calvinprinter@drreddys.com (Ph: +91-40-4900 2121) |
Dr. Reddy s Q2 and H1 FY17 Financial Results
Hyderabad, India, October 25, 2016: Dr. Reddy s Laboratories Ltd. (BSE: 500124 | NSE:
DRREDDY | NYSE: RDY) today announced its consolidated financial results for the second quarter and half year ended September 30, 2016 under International Financial Reporting Standards (IFRS).
Q2 FY17: Key Highlights
H1 FY17: Key Highlights
Commenting on the results, Co-chairman and CEO, G V Prasad said All our major businesses have shown sequential improvement over
the previous quarter with revenues growing by 11% and EBITDA by 61%. We have made considerable progress in our remediation efforts and continue to work on addressing the concerns of the regulators. Looking ahead we will continue to focus on
launching new products in our generics business, improving productivity and strengthening our quality management systems.
Dr. Reddy s Laboratories Limited and Subsidiaries
Consolidated Income Statement
| Particulars | Q2 FY 17 | Q2 FY 16 | Growth % | |||||||||||||||||||||||||
| ($) | (Rs.) | % | ($) | (Rs.) | % | |||||||||||||||||||||||
| Revenues | 539 | 35,857 | 100.0 | 599 | 39,889 | 100.0 | (10 | ) | ||||||||||||||||||||
| Cost of revenues | 237 | 15,760 | 44.0 | 232 | 15,421 | 38.7 | 2 | |||||||||||||||||||||
| Gross profit | 302 | 20,097 | 56.0 | 368 | 24,468 | 61.3 | (18 | ) | ||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||
| Selling, general & administrative expenses | 177 | 11,774 | 32.8 | 166 | 11,058 | 27.7 | 6 | |||||||||||||||||||||
| Research and development expenses | 78 | 5,214 | 14.5 | 67 | 4,473 | 11.2 | 17 | |||||||||||||||||||||
| Other operating expense / (income) | (4 | ) | (277 | ) | (0.8 | ) | (5 | ) | (320 | ) | (0.8 | ) | (13 | ) | ||||||||||||||
| Results from operating activities | 51 | 3,386 | 9.4 | 139 | 9,257 | 23.2 | (63 | ) | ||||||||||||||||||||
| Finance expense / (income), net | (5 | ) | (365 | ) | (1.0 | ) | 3 | 216 | 0.5 | (269 | ) | |||||||||||||||||
| Share of (profit) of equity accounted investees, net of income tax | (1 | ) | (84 | ) | (0.2 | ) | (1 | ) | (57 | ) | (0.1 | ) | 49 | |||||||||||||||
| Profit before income tax | 58 | 3,835 | 10.7 | 137 | 9,098 | 22.8 | (58 | ) | ||||||||||||||||||||
| Income tax expense | 13 | 885 | 2.5 | 28 | 1,880 | 4.7 | (53 | ) | ||||||||||||||||||||
| Profit for the period | 44 | 2,950 | 8.2 | 108 | 7,218 | 18.1 | (59 | ) | ||||||||||||||||||||
| Diluted EPS | 0.27 | 17.76 | 0.63 | 42.20 | (58 | ) |
| Particulars | Q2 FY 17 | Q2 FY 16 | ||||||||||||||
| ($) | (Rs.) | ($) | (Rs.) | |||||||||||||
| Profit before income tax | 58 | 3,835 | 137 | 9,098 | ||||||||||||
| Interest (income) / expense net* | (5 | ) | (329 | ) | (3 | ) | (172 | ) | ||||||||
| Depreciation | 28 | 1,897 | 24 | 1,606 | ||||||||||||
| Amortization | 14 | 950 | 13 | 860 | ||||||||||||
| Impairment | 1 | 67 | ||||||||||||||
| EBITDA | 96 | 6,420 | 171 | 11,392 | ||||||||||||
| EBITDA (% to sales) | 17.9 | 28.6 |
Key Balance Sheet Items
| Particulars | As on Sep 30, 2016 | As on June 30, 2016 | ||||||||||||||
| ($) | (Rs.) | ($) | (Rs.) | |||||||||||||
| Cash and cash equivalents and Other current Investments | 321 | 21,379 | 384 | 25,578 | ||||||||||||
| Trade receivables | 555 | 36,939 | 533 | 35,499 | ||||||||||||
| Inventories | 428 | 28,516 | 419 | 27,922 | ||||||||||||
| Property, plant and equipment | 842 | 56,052 | 825 | 54,951 | ||||||||||||
| Goodwill and Other Intangible assets | 762 | 50,766 | 425 | 28,284 | ||||||||||||
| Loans and borrowings (current & non-current) | 908 | 60,480 | 565 | 37,632 | ||||||||||||
| Trade payables | 184 | 12,281 | 191 | 12,723 | ||||||||||||
| Equity | 1,731 | 1,15,264 | 1,714 | 1,14,112 |
Revenue Mix by Segment [Year on year]
| Particulars | Q2 FY 17 | Q2 FY 16 | Growth % | |||||||||||||||||||||||||
| ($) | (Rs.) | % | ($) | (Rs.) | % | |||||||||||||||||||||||
| Global Generics | 435 | 28,995 | 81 | 492 | 32,768 | 82 | -12 | |||||||||||||||||||||
| North America | 16,134 | 18,563 | -13 | |||||||||||||||||||||||||
| Europe* | 1,776 | 2,124 | -16 | |||||||||||||||||||||||||
| India | 6,251 | 5,464 | 14 | |||||||||||||||||||||||||
| Emerging Markets # | 4,834 | 6,617 | -27 | |||||||||||||||||||||||||
| PSAI | 87 | 5,784 | 16 | 89 | 5,918 | 15 | -2 | |||||||||||||||||||||
| North America | 1,135 | 692 | 64 | |||||||||||||||||||||||||
| Europe | 2,095 | 2,426 | -14 | |||||||||||||||||||||||||
| India | 575 | 724 | -21 | |||||||||||||||||||||||||
| Rest of World | 1,979 | 2,076 | -5 | |||||||||||||||||||||||||
| Proprietary Products & Others | 16 | 1,078 | 3 | 18 | 1,203 | 3 | -10 | |||||||||||||||||||||
| Total | 539 | 35,857 | 100 | 599 | 39,889 | 100 | -10 |
Revenue Mix by Segment [Sequential]
| Particulars | Q2 FY 17 | Q1 FY 17 | Growth % | |||||||||||||||||||||||||
| ($) | (Rs.) | % | ($) | (Rs.) | % | |||||||||||||||||||||||
| Global Generics | 435 | 28,995 | 81 | 400 | 26,638 | 82 | 9 | % | ||||||||||||||||||||
| North America | 16,134 | 15,523 | 4 | % | ||||||||||||||||||||||||
| Europe* | 1,776 | 1,615 | 10 | % | ||||||||||||||||||||||||
| India | 6,251 | 5,223 | 20 | % | ||||||||||||||||||||||||
| Emerging Markets # | 4,834 | 4,277 | 13 | % | ||||||||||||||||||||||||
| PSAI | 87 | 5,784 | 16 | 70 | 4,692 | 15 | 23 | % | ||||||||||||||||||||
| North America | 1,135 | 643 | 77 | % | ||||||||||||||||||||||||
| Europe | 2,095 | 1,947 | 8 | % | ||||||||||||||||||||||||
| India | 575 | 372 | 55 | % | ||||||||||||||||||||||||
| Rest of World | 1,979 | 1,730 | 14 | % | ||||||||||||||||||||||||
| Proprietary Products & Others | 16 | 1,078 | 3 | 15 | 1,015 | 3 | 6 | % | ||||||||||||||||||||
| Total | 539 | 35,857 | 100 | 486 | 32,345 | 100 | 11 | % |
Global Generics (GG)
Revenues from GG segment at Rs.29.0 billion, year-on-year decline of 12%; decline primarily on account of lower
contribution from North America and loss of sales from Venezuela. However, all the businesses have grown sequentially.
During the quarter we launched 4 new products i.e. omeprazole sodium bi-carbonate, nitroglycerin SLT, paricalcitol injection
As of September 30, 2016, cumulatively 85 generic filings are pending for approval with the USFDA
(83 ANDAs and 2 NDAs under 505(b)(2) route). Of these 83 ANDAs, 56 are Para IVs out of which we believe 19 have First to File status. Further, these 83 ANDAs include 7 ANDAs, acquired from Teva, of which 6 are Para IVs.
Pharmaceutical Services and Active Ingredients (PSAI)
Proprietary Products (PP)
Zembrace Sym Touch (Suma 3 mg) injection and Sernivo (betamethasone dipropionate) Spray, 0.05% are gradually
Income Statement Highlights:
Given the Bombay High Court s dismissal of the writ petition filed by the IPA (Indian Pharmaceutical Alliance) regarding
price controls by the NPPA (National Pharmaceutical Pricing Authority), the Company has accrued a potential liability of Rs.344 million during the quarter.
The net increase, adjusted for the above NPPA provision, is largely due to annual increments, additional manpower deployment in
the past 12 months and other sales and marketing spend for events specific to this quarter.
The sequential decline,
adjusted for the above NPPA provision, is primarily on account of the reduced (a) remediation related costs and (b) launch spends by PP in the first quarter.
Earnings Call Details (06:30 pm IST, 09:00 am EDT, October 25, 2016)
The Company will host an earnings call to discuss the performance and answer any questions from participants. This call will be
accessible through an audio dial-in and a web-cast.
Audio conference 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 gastro-intestinal,
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.