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 Q3 and 9M FY17 Financial Results
Hyderabad, India, February 4, 2017: Dr. Reddy s Laboratories Ltd. (BSE: 500124 | NSE:
DRREDDY | NYSE: RDY) today announced its consolidated financial results for the third quarter and nine months ended December 31, 2016 under International Financial Reporting Standards (IFRS).
Q3 FY17: Key Highlights
9M FY17: Key Highlights
Commenting on the results, Co-chairman and CEO, G V Prasad said Our performance in Q3 has delivered a modest sequential revenue
growth of 3% over the previous quarter. Our EBITDA has improved significantly from the last quarter to Rs. 8.8 billion, on the back of enhanced emphasis on operational efficiencies and controlling of SG&A costs across all our
Dr. Reddy s Laboratories Limited and Subsidiaries
Consolidated Income Statement
| Particulars | Q3 FY17 | Q3 FY16 | Growth % | |||||||||||||||||||||||||
| ($) | (Rs.) | % | ($) | (Rs.) | % | |||||||||||||||||||||||
| Revenue | 546 | 37,065 | 100.0 | 584 | 39,679 | 100.0 | (7 | ) | ||||||||||||||||||||
| Cost of revenues | 223 | 15,166 | 40.9 | 237 | 16,089 | 40.5 | (6 | ) | ||||||||||||||||||||
| Gross profit | 322 | 21,899 | 59.1 | 347 | 23,590 | 59.5 | (7 | ) | ||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||
| Selling, general & administrative expenses | 167 | 11,341 | 30.6 | 177 | 12,039 | 30.3 | (6 | ) | ||||||||||||||||||||
| Research and development expenses | 73 | 4,956 | 13.4 | 60 | 4,095 | 10.3 | 21 | |||||||||||||||||||||
| Other operating income | (3 | ) | (187 | ) | (0.5 | ) | (2 | ) | (122 | ) | (0.3 | ) | 53 | |||||||||||||||
| Results from operating activities | 85 | 5,789 | 15.6 | 112 | 7,578 | 19.1 | (24 | ) | ||||||||||||||||||||
| Net finance (income) / expense | (1 | ) | (44 | ) | (0.1 | ) | 1 | 62 | 0.2 | 171 | ||||||||||||||||||
| Share of profit of equity accounted investees | (1 | ) | (89 | ) | (0.2 | ) | (1 | ) | (64 | ) | (0.2 | ) | 38 | |||||||||||||||
| Profit before income tax | 87 | 5,922 | 16.0 | 112 | 7,580 | 19.1 | (22 | ) | ||||||||||||||||||||
| Income tax expense | 18 | 1,221 | 3.3 | 26 | 1,788 | 4.5 | (32 | ) | ||||||||||||||||||||
| Profit for the period | 69 | 4,701 | 12.7 | 85 | 5,792 | 14.6 | (19 | ) | ||||||||||||||||||||
| Diluted EPS | 0.42 | 28.32 | 0.50 | 33.86 | (16 | ) |
| Particulars | Q3 FY 17 | Q3 FY 16 | ||||||||||||||
| $ | Rs. | $ | Rs. | |||||||||||||
| Profit before income tax | 87 | 5,922 | 112 | 7,580 | ||||||||||||
| Interest income, net* | (1 | ) | (53 | ) | (3 | ) | (236 | ) | ||||||||
| Depreciation | 29 | 1,936 | 25 | 1,685 | ||||||||||||
| Amortization / Impairment | 15 | 988 | 16 | 1086 | ||||||||||||
| EBITDA | 129 | 8,793 | 149 | 10,115 | ||||||||||||
| EBITDA% to Revenues | 23.7 | % | 25.5 | % |
Key Balance Sheet Items
| Particulars | As on 31 st Dec 16 | As on 30 th Sep 16 | ||||||||||||||
| ($) | (Rs.) | ($) | (Rs.) | |||||||||||||
| Cash and cash equivalents and Other current Investments | 297 | 20,145 | 315 | 21,379 | ||||||||||||
| Trade Receivables | 605 | 41,119 | 544 | 36,939 | ||||||||||||
| Inventories | 442 | 30,052 | 420 | 28,516 | ||||||||||||
| Property, plant and equipment | 842 | 57,209 | 825 | 56,052 | ||||||||||||
| Goodwill and Other Intangible assets | 736 | 49,977 | 747 | 50,766 | ||||||||||||
| Loans and borrowings (current & non-current) | 854 | 57,999 | 890 | 60,480 | ||||||||||||
| Trade & other payables | 196 | 13,308 | 181 | 12,281 | ||||||||||||
| Equity | 1,782 | 121,040 | 1,697 | 115,264 |
Revenue Mix by Segment [Year on year]
| Particulars | Q3 FY17 | Q3 FY16 | Growth % | |||||||||||||||||||||||||
| ($) | (Rs.) | % | ($) | (Rs.) | % | |||||||||||||||||||||||
| Global Generics | 451 | 30,638 | 83 | 494 | 33,558 | 84 | -9 | |||||||||||||||||||||
| North America | 16,595 | 19,417 | -15 | |||||||||||||||||||||||||
| Europe* | 2,148 | 1,937 | 11 | |||||||||||||||||||||||||
| India | 5,947 | 5,805 | 2 | |||||||||||||||||||||||||
| Emerging Markets # | 5,948 | 6,399 | -7 | |||||||||||||||||||||||||
| PSAI | 80 | 5,400 | 14 | 75 | 5,082 | 13 | 6 | |||||||||||||||||||||
| North America | 1,259 | 1,037 | 21 | |||||||||||||||||||||||||
| Europe | 1,828 | 1,951 | -6 | |||||||||||||||||||||||||
| India | 409 | 622 | -34 | |||||||||||||||||||||||||
| Rest of World | 1,904 | 1,472 | 29 | |||||||||||||||||||||||||
| Proprietary Products & Others | 15 | 1,027 | 3 | 15 | 1,039 | 3 | -1 | |||||||||||||||||||||
| Total | 546 | 37,065 | 100 | 584 | 39,679 | 100 | -7 |
Revenue Mix by Segment [Sequential]
| Particulars | Q3 FY 17 | Q2 FY 17 | Growth % | |||||||||||||||||||||||||
| ($) | (Rs.) | % | ($) | (Rs.) | % | |||||||||||||||||||||||
| Global Generics | 451 | 30,638 | 83 | 427 | 28,995 | 81 | 6 | |||||||||||||||||||||
| North America | 16,595 | 16,134 | 3 | |||||||||||||||||||||||||
| Europe* | 2,148 | 1,776 | 21 | |||||||||||||||||||||||||
| India | 5,947 | 6,251 | -5 | |||||||||||||||||||||||||
| Emerging Markets # | 5,948 | 4,834 | 23 | |||||||||||||||||||||||||
| PSAI | 80 | 5,400 | 14 | 85 | 5,784 | 16 | -7 | |||||||||||||||||||||
| North America | 1,259 | 1,135 | 11 | |||||||||||||||||||||||||
| Europe | 1,828 | 2,095 | -13 | |||||||||||||||||||||||||
| India | 409 | 575 | -29 | |||||||||||||||||||||||||
| Rest of World | 1,904 | 1,979 | -4 | |||||||||||||||||||||||||
| Proprietary Products & Others | 15 | 1,027 | 3 | 16 | 1,078 | 3 | -5 | |||||||||||||||||||||
| Total | 546 | 37,065 | 100 | 528 | 35,857 | 100 | 3 |
Global Generics (GG)
Revenues from GG segment at Rs. 30.6 billion, year-on-year decline of 9%; primarily on account of lower contribution
from North America and Venezuela. However, it grew by 6% sequentially.
During the quarter we launched 5 new products i.e. Aripiprazole, Lamotrigene ODT, Fluoxetine Tabs, Raloxifene HCl and Nystatin
- Triamcinolone Cream.
As of 31st December 2016, cumulatively 92
generic filings are pending for approval with the USFDA (90 ANDAs and 2 NDAs under 505(b)(2) route). Of these 90 ANDAs, 59 are Para IVs out of which we believe 20 have First to File status. Further, these 90 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
gaining traction in prescriptions.
Income Statement Highlights:
Sequentially, there is a decline of 4%. Normalized for the NPPA charge that we took last quarter, there is no major variance.
Earnings Call Details (06:30 pm IST, 08:00 am EST, February 4, 2017)
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 | |||
| International Toll Free Number | USA UK Singapore Hong Kong | 18667462133 08081011573 8001012045 800964448 | ||
| Playback of call: Conference ID: Web-cast | 91 22 3065 2322, 91 22 6181 3322 375# 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