Full Press Release Details
| CONTACT | ||
| DR. REDDY'S LABORATORIES LTD. 8-2-337, Road No. 3, Banjara Hills, Hyderabad - 500034. Telangana, India. | Investor relationS | Media relationS |
| Richa Periwal richaperiwal@drreddys.com | USHA IYER ushaiyer@drreddys.com |
Dr. Reddy's Q3 & 9M FY23 Financial
Hyderabad, India, January 25, 2023: Dr.
Reddy's Laboratories Ltd. (BSE: 500124 | NSE: DRREDDY | NYSE: RDY | NSEIFSC: DRREDDY) today announced its consolidated financial
results for the quarter and the nine months ended December 31, 2022. The information mentioned in this release is on the basis of consolidated
financial statements under International Financial Reporting Standards (IFRS).
| Q3 Performance Summary | 9M Performance Summary |
| Rs. 6,770 Cr | Rs. 18,291 Cr |
| Revenue | Revenue |
| [Up: 27% YoY; Up: 7% QoQ] | [Up: 14% YoY] |
| 59.2% | 56.5% |
| Gross Margin | Gross Margin |
| [Q3 FY22: 53.8%; Q2 FY23: 59.1%] | [9M FY22: 53.2%] |
| Rs.1,798 Cr | Rs. 5,003 Cr |
| SGNA expenses | SGNA expenses |
| [Up: 17% YoY; Up: 9% QoQ] | [Up: 8% YoY] |
| Rs. 482 Cr | Rs. 1,402 Cr |
| R&D expenses | R&D expenses |
| [7.1% of Revenues] | [7.7% of Revenues] |
| Rs. 1,966 Cr | Rs. 5,677 Cr |
| EBITDA | EBITDA |
| [29.0% of Revenues; Up: 55% YoY; Up: 2% QoQ] | [31.0% of Revenues; Up: 48% YoY] |
| Rs. 1,635 Cr | Rs. 4,711 Cr |
| Profit before Tax | Profit before Tax |
| [Up: 68% YoY; Up: 1% QoQ] | [Up: 58% YoY] |
| Rs. 1,247 Cr | Rs. 3,548 Cr |
| Profit after Tax | Profit after Tax |
| [Up: 77% YoY; Up: 12% QoQ] | [Up: 56% YoY] |
Commenting on the results, Co-chairman & MD, G V Prasad said
"Our strong financial performance was supported by growth in the US and the Russia markets. We continue to strengthen our development
pipeline to reach more patients globally."
Dr. Reddy's Laboratories Limited and
Consolidated Income Statement
| Q 3 FY23 | Q3 FY22 | YoY | Q2 FY23 | QoQ | ||||||||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | Gr % | ($) | (Rs.) | Gr % | ||||||||||||||||||||||||
| Revenues | 818 | 67,700 | 643 | 53,197 | 27 | 762 | 63,057 | 7 | ||||||||||||||||||||||||
| Cost of Revenues | 334 | 27,607 | 297 | 24,585 | 12 | 312 | 25,810 | 7 | ||||||||||||||||||||||||
| Gross Profit | 485 | 40,093 | 346 | 28,612 | 40 | 450 | 37,247 | 8 | ||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||
| Selling, General & Administrative expenses | 217 | 17,981 | 186 | 15,411 | 17 | 200 | 16,560 | 9 | ||||||||||||||||||||||||
| Research and Development expenses | 58 | 4,821 | 50 | 4,159 | 16 | 59 | 4,869 | (1 | ) | |||||||||||||||||||||||
| Impairment of non-current assets | 2 | 134 | 1 | 47 | 185 | 0 | 25 | 436 | ||||||||||||||||||||||||
| Other operating expense/(income) | 9 | 732 | (3 | ) | (240 | ) | - | (4 | ) | (334 | ) | - | ||||||||||||||||||||
| Results from operating activities | 199 | 16,425 | 112 | 9,235 | 78 | 195 | 16,127 | 2 | ||||||||||||||||||||||||
| Net finance expense/(income) | 2 | 139 | (3 | ) | (289 | ) | - | 2 | 156 | (10 | ) | |||||||||||||||||||||
| Share of profit of equity accounted investees | (1 | ) | (60 | ) | (2 | ) | (185 | ) | (68 | ) | (2 | ) | (140 | ) | (57 | ) | ||||||||||||||||
| Profit before Income Tax | 198 | 16,346 | 117 | 9,709 | 68 | 195 | 16,111 | 1 | ||||||||||||||||||||||||
| Income Tax | 47 | 3,875 | 32 | 2,644 | 47 | 60 | 4,983 | (22 | ) | |||||||||||||||||||||||
| Profit for the period | 151 | 12,471 | 85 | 7,065 | 77 | 135 | 11,128 | 12 | ||||||||||||||||||||||||
| Diluted Earnings Per Share (EPS) | 0.91 | 74.95 | 0.51 | 42.48 | 76 | 0.81 | 66.89 | 12 |
| As % to revenues | Q3 FY23 | Q3 FY22 | Q2 FY23 | |||||||||
| Gross Profit | 59.2 | 53.8 | 59.1 | |||||||||
| SG&A | 26.6 | 29.0 | 26.3 | |||||||||
| R&D | 7.1 | 7.8 | 7.7 | |||||||||
| EBITDA | 29.0 | 23.8 | 30.6 | |||||||||
| PBT | 24.1 | 18.3 | 25.5 | |||||||||
| PAT | 18.4 | 13.3 | 17.6 |
| Q3 FY23 | Q3 FY22 | Q2 FY23 | ||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | ||||||||||||||||||
| Profit before Income Tax | 198 | 16,346 | 117 | 9,709 | 195 | 16,111 | ||||||||||||||||||
| Interest income (net)* | (1 | ) | (93 | ) | (1 | ) | (72 | ) | 1 | 61 | ||||||||||||||
| Depreciation | 27 | 2,245 | 25 | 2,066 | 25 | 2,107 | ||||||||||||||||||
| Amortization | 12 | 1,026 | 11 | 910 | 12 | 1,018 | ||||||||||||||||||
| Impairment | 2 | 134 | 1 | 47 | 0 | 25 | ||||||||||||||||||
| EBITDA | 238 | 19,658 | 153 | 12,659 | 234 | 19,322 |
* Includes income from Investments
Key Balance Sheet Items
| As on 31st Dec 2022 | As on 30th Sep 2022 | As on 31st Dec 2021 | ||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | ||||||||||||||||||
| Cash and cash equivalents and current investments | 606 | 50,164 | 354 | 29,306 | 454 | 37,556 | ||||||||||||||||||
| Trade receivables (current & non-current) | 907 | 75,046 | 931 | 76,987 | 756 | 62,507 | ||||||||||||||||||
| Inventories | 596 | 49,326 | 593 | 49,042 | 601 | 49,675 | ||||||||||||||||||
| Property, plant and equipment | 786 | 64,996 | 771 | 63,817 | 761 | 62,971 | ||||||||||||||||||
| Goodwill and Other Intangible assets | 428 | 35,401 | 436 | 36,084 | 442 | 36,581 | ||||||||||||||||||
| Loans and borrowings (current & non-current) | 214 | 17,663 | 209 | 17,289 | 340 | 28,164 | ||||||||||||||||||
| Trade payables | 315 | 26,023 | 275 | 22,778 | 296 | 24,492 | ||||||||||||||||||
| Equity | 2,663 | 2,20,273 | 2,493 | 2,06,225 | 2,297 | 1,90,016 |
Revenue Mix by Segment
| Q3 FY23 | Q3 FY22 | YoY | Q2 FY23 | QoQ | ||||||||||||||||
| Segment | (Rs.) | (Rs.) | Gr % | (Rs.) | Gr % | |||||||||||||||
| Global Generics | 59,241 | 44,508 | 33 | 55,946 | 6 | |||||||||||||||
| North America | 30,567 | 18,645 | 64 | 28,001 | 9 | |||||||||||||||
| Europe | 4,303 | 4,058 | 6 | 4,199 | 2 | |||||||||||||||
| India | 11,274 | 10,266 | 10 | 11,500 | (2 | ) | ||||||||||||||
| Emerging Markets | 13,097 | 11,539 | 14 | 12,246 | 7 | |||||||||||||||
| Pharmaceutical Services and Active Ingredients (PSAI) | 7,758 | 7,271 | 7 | 6,434 | 21 | |||||||||||||||
| Others | 701 | 1,418 | (51 | ) | 677 | 4 | ||||||||||||||
| Total | 67,700 | 53,197 | 27 | 63,057 | 7 |
Global Generics (GG)
segment at Rs. 59.2 billion:
America at Rs. 30.6 billion:
Revenues from Europe at Rs. 4.3 billion:
Revenues from India at Rs. 11.3 billion:
Revenues from Emerging Markets at Rs. 13.1
billion. Year-on-year growth of 14% and sequential quarter growth of 7%:
Pharmaceutical Services
and Active Ingredients (PSAI)
Income Statement Highlights:
Earnings Call Details (07:00 pm IST, 08:30
am EST, Jan 25, 2023)
The management of the Company will host
an earnings call to discuss the Company's financial performance and answer any questions from the participants.
Pre-register with the below link and join without waiting
| Option 2: Join through below Dial-In Numbers | |
| Universal Access Number: | +91 22 6280 1219 +91 22 7115 8120 |
| International Toll Free Number: | USA: 1 866 746 2133 UK: 0 808 101 1573 Singapore: 800 101 2045 Hong Kong: 800 964 448 |
No password/pin number is necessary to dial in to any of the above
numbers. The operator will provide instructions on asking questions before and during the call.
Play Back: The play back will be available after the earnings
call, till January 31st, 2023. For play back dial in phone No: +91 22 7194 5757, and Playback Code is 54421.
Transcript: Transcript of the Earnings call will be available
on the Company's website: www.drreddys.com
About Dr. Reddy's: Dr. Reddy's
Laboratories Ltd. (BSE: 500124, NSE: DRREDDY, NYSE: RDY, NSEIFSC: DRREDDY) is an integrated pharmaceutical company, committed to providing
affordable and innovative medicines for healthier lives. Through its businesses, 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 & CIS countries, and Europe. For more information,
log on to: www.drreddys.com
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 reorganization, including related integration issues, and (vi) the susceptibility of our industry and the markets
addressed by our, and our customers', products and services to economic downturns as a result of natural disasters, epidemics, pandemics
or other widespread illness, including coronavirus (or COVID-19), and (vii) other risks and uncertainties identified in our public filings
with the Securities and Exchange Commission, including those listed under the "Risk Factors" and "Forward-Looking Statements"
sections of our Annual Report on Form 20-F for the year ended March 31, 2022. The company assumes no obligation to update any information