Full Press Release Details
| DR. REDDY'S LABORATORIES LTD. | CONTACT | |
| 8-2-337, Road No. 3, Banjara Hills, | Investor relationS | Media relationS |
| Hyderabad - 500034. Telangana, India. | Saunak Savla | Calvin Printer |
| saunaks@drreddys.com | calvinprinter@drreddys.com | |
| (Ph: +91-40-4900 2135) | (Ph: +91-40-4900 2121) |
Q1 FY19 Financial Results
Hyderabad, India, July 26, 2018: Dr. Reddy's Laboratories
Ltd. (BSE: 500124 | NSE: DRREDDY | NYSE: RDY) today announced its consolidated financial results for the quarter ended June 30,
2018 under International Financial Reporting Standards (IFRS).
| Revenues | Rs. 3,721 Cr | |
| [YoY: 12% Up, QoQ: 5% Up] | ||
| Gross Margin | 55.7% | |
| [Q1 FY18: 51.6%; Q4 FY18: 53.5%] | ||
| SG&A expenses | Rs. 1,211 Cr | |
| [YoY: 3% Up, QoQ: Flat] | ||
| R&D expenses | Rs. 416 Cr | |
| [11.2% of Revenues] | ||
| Profit before Tax | Rs. 501 Cr | |
| [13.5% of Revenues] | ||
| Profit after Tax | Rs. 456 Cr | |
| [12.3% of Revenues] |
Commenting on the results, Co-chairman and CEO, GV Prasad said
"I am pleased with our first quarter results, aided by the launch of gSuboxone. Our focus on operational efficiencies
has helped in significantly improving our margin profile. Looking ahead, while we may continue to experience price erosion in
the North America Generics market, we will also continue to drive growth and cost efficiencies, at the same time, enhancing our
quality management systems and building healthy portfolios across the markets we serve".
Dr. Reddy's Laboratories Limited
Consolidated Income Statement
| Q1 FY19 | Q1 FY18 | YoY | Q4 FY18 | QoQ | ||||||||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | Gr % | ($) | (Rs.) | Gr% | ||||||||||||||||||||||||
| Revenues | 543 | 37,207 | 484 | 33,159 | 12 | 516 | 35,349 | 5 | ||||||||||||||||||||||||
| Cost of Revenues | 241 | 16,479 | 235 | 16,062 | 3 | 240 | 16,454 | 0 | ||||||||||||||||||||||||
| Gross Profit | 303 | 20,728 | 250 | 17,097 | 21 | 276 | 18,895 | 10 | ||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||
| Selling, General & Administrative expenses | 177 | 12,106 | 172 | 11,763 | 3 | 176 | 12,067 | 0.3 | ||||||||||||||||||||||||
| Research and Development expenses | 61 | 4,157 | 74 | 5,075 | (18 | ) | 63 | 4,348 | (4 | ) | ||||||||||||||||||||||
| Other operating (income) / expense | (4 | ) | (303 | ) | (3 | ) | (194 | ) | 56 | (2 | ) | (167 | ) | 80 | ||||||||||||||||||
| Results from operating activities | 70 | 4,768 | 7 | 453 | 952 | 39 | 2,647 | 80 | ||||||||||||||||||||||||
| Net finance (income) / expense | (2 | ) | (156 | ) | (3 | ) | (221 | ) | (30 | ) | (15 | ) | (1,032 | ) | (85 | ) | ||||||||||||||||
| Share of (profit) / loss of equity accounted investees | (1 | ) | (83 | ) | (1 | ) | (98 | ) | (15 | ) | (1 | ) | (69 | ) | 20 | |||||||||||||||||
| Profit before income tax | 73 | 5,007 | 11 | 772 | 548 | 55 | 3,748 | 34 | ||||||||||||||||||||||||
| Income tax expense | 7 | 446 | 3 | 181 | 146 | 11 | 726 | (39 | ) | |||||||||||||||||||||||
| Profit for the period | 67 | 4,561 | 9 | 591 | 672 | 44 | 3,022 | 51 | ||||||||||||||||||||||||
| Diluted Earnings Per Share (EPS) | 0.40 | 27.45 | 0.05 | 3.56 | 672 | 0.27 | 18.18 | 51 |
| As % to Revenues | Q1 FY19 | Q1 FY18 | Q4 FY18 | |||||||||
| Gross Profit | 55.7 | 51.6 | 53.5 | |||||||||
| SG&A | 32.5 | 35.5 | 34.1 | |||||||||
| R&D | 11.2 | 15.3 | 12.3 | |||||||||
| PBT | 13.5 | 2.3 | 10.6 | |||||||||
| PAT | 12.3 | 1.8 | 8.5 |
| Q1 FY19 | Q1 FY18 | Q4 FY18 | ||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | ||||||||||||||||||
| Profit before Income Tax | 73 | 5,007 | 11 | 772 | 55 | 3,748 | ||||||||||||||||||
| Interest (income) net* | (1 | ) | (46 | ) | (3 | ) | (211 | ) | (15 | ) | (1,001 | ) | ||||||||||||
| Depreciation # | 32 | 2,214 | 29 | 2,008 | 31 | 2,109 | ||||||||||||||||||
| Amortization # | 13 | 896 | 12 | 791 | 13 | 921 | ||||||||||||||||||
| EBITDA | 118 | 8,071 | 49 | 3,360 | 84 | 5,777 |
* Includes income from Investments # includes impairment
Key Balance Sheet Items
| As on 30 th June, 2018 | As on 31st March 2018 | As on 30 th June 2017 | ||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | ||||||||||||||||||
| Cash and cash equivalents and other investments | 249 | 17,047 | 344 | 23,517 | 213 | 14,572 | ||||||||||||||||||
| Trade receivables (current & non-current) | 703 | 48,095 | 596 | 40,786 | 601 | 41,140 | ||||||||||||||||||
| Inventories | 460 | 31,498 | 425 | 29,089 | 410 | 28,095 | ||||||||||||||||||
| Property, plant and equipment | 833 | 57,020 | 845 | 57,869 | 842 | 57,611 | ||||||||||||||||||
| Goodwill and Other Intangible assets | 720 | 49,289 | 710 | 48,610 | 709 | 48,564 | ||||||||||||||||||
| Loans and borrowings (current & non-current) | 793 | 54,273 | 741 | 50,714 | 737 | 50,462 | ||||||||||||||||||
| Trade payables | 216 | 14,816 | 234 | 16,052 | 193 | 13,225 | ||||||||||||||||||
| Equity | 1,905 | 1,30,430 | 1,847 | 1,26,460 | 1,803 | 1,23,423 |
Revenue Mix by Segment
| Q1 FY19 | Q1 FY18 | YoY | Q4 FY18 | QoQ | ||||||||||||||||
| Particulars | (Rs.) | (Rs.) | Growth % | (Rs.) | Growth % | |||||||||||||||
| Global Generics | 30,636 | 27,455 | 12 | 27,836 | 10 | |||||||||||||||
| North America | 15,903 | 14,946 | 6 | 14,487 | 10 | |||||||||||||||
| Europe | 2,016 | 2,075 | (3 | ) | 1,711 | 18 | ||||||||||||||
| India | 6,074 | 4,687 | 30 | 6,138 | (1 | ) | ||||||||||||||
| Emerging Markets | 6,643 | 5,747 | 16 | 5,500 | 21 | |||||||||||||||
| Pharmaceutical Services and Active Ingredients (PSAI) | 5,409 | 4,651 | 16 | 6,251 | (13 | ) | ||||||||||||||
| Proprietary Products & Others | 1,162 | 1,053 | 10 | 1,262 | (8 | ) | ||||||||||||||
| Total | 37,207 | 33,159 | 12 | 35,349 | 5 |
Revenues from GG segment at Rs.30.6
billion. Year-on-year growth of 12%, primarily driven by contributions from Emerging Markets, India and launch of gSuboxone in
the US. Sequential growth is 10%.
As of 30th June 2018, cumulatively
112 generic filings are pending for approval with the USFDA (109 ANDAs and 3 NDAs under 505(b)(2) route). Of these 109 ANDAs,
61 are Para IVs out of which we believe 30 have First to File' status.
Pharmaceutical Services and Active
Proprietary Products (PP)
Income Statement Highlights:
Earnings Call Details (06:30
pm IST, 09:00 am EDT, July 26, 2018)
The Company will host an earnings call to discuss the performance
and answer any questions from participants.
Audio conference Participants can dial-in on the numbers below
| Primary number: | 91 22 6280 1219 |
| Secondary number: | 91 22 7115 8120 |
The numbers listed above are universally accessible from
all networks and all countries.
| International Toll Free Number | USA | 18667462133 |
| UK | 08081011573 | |
| Singapore | 8001012045 | |
| Hong Kong | 800964448 |
| Playback of call: | 91 22 7194 5757, 91 22 6663 5757 |
| Conference ID: | 375# |
event will be available at www.drreddys.com. Playback will be available for a few
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 & 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 reorganisation
, including related integration issues.
The company assumes no obligation to update
any information contained herein.