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) |
Q2 & H1 FY19 Financial Results
Hyderabad, India, October 26, 2018: Dr. Reddy's
Laboratories Ltd. (BSE: 500124 | NSE: DRREDDY | NYSE: RDY) today announced its consolidated financial results for the quarter and
half year ended September 30, 2018 under International Financial Reporting Standards (IFRS).
| Q2 Performance Summary | H1 Performance Summary | |
| Rs. 3,798 Cr | Rs. 7,519 Cr | |
| Revenue | Revenue | |
| [Up: 2% QoQ; 7% YoY] | [Up: 10% YoY] | |
| 55.0% | 55.4% | |
| Gross Margin | Gross Margin | |
| [Q1 FY19: 55.7%; Q2 FY18: 53.3%] | [H1 FY17: 52.5%] | |
| Rs. 1,237 Cr | Rs. 2,448 Cr | |
| SGNA expenses | SGNA expenses | |
| [Up: 2% QoQ, 12% YoY] | [Up: 7% YoY] | |
| Rs. 412 Cr | Rs. 828 Cr | |
| R&D expenses | R&D expenses | |
| [10.8% of Revenues] | [11.0% of Revenues] | |
| Rs. 578 Cr | Rs. 1,079 Cr | |
| Profit before Tax | Profit before Tax | |
| [Up: 15% QoQ; 49% YoY] | [Up: 132%] | |
| Rs. 504 Cr | Rs. 960 Cr | |
| Profit after Tax | Profit after Tax | |
| [Up: 10% QoQ, 77% YoY] | [Up: 179%] |
Commenting on the results, Co-chairman and CEO, G.V. Prasad
said, "I am encouraged with our performance and progress in the second quarter. Our continuous focus on execution, operational
efficiency and cost optimization are showing results.
Looking ahead, our priority will be to resolve pending regulatory
issues, and continue to work on execution and cost structures that will enable affordable medicines for more patients."
Dr. Reddy's Laboratories Limited
Consolidated Income Statement
| Q2 FY19 | Q2 FY18 | YoY | Q1 FY19 | QoQ | ||||||||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | Gr % | ($) | (Rs.) | Gr% | ||||||||||||||||||||||||
| Revenues | 524 | 37,978 | 489 | 35,460 | 7 | 513 | 37,207 | 2 | ||||||||||||||||||||||||
| Cost of Revenues | 235 | 17,081 | 228 | 16,559 | 3 | 227 | 16,479 | 4 | ||||||||||||||||||||||||
| Gross Profit | 288 | 20,897 | 261 | 18,901 | 11 | 286 | 20,728 | 1 | ||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||
| Selling, General & Administrative expenses | 171 | 12,372 | 152 | 11,032 | 12 | 167 | 12,106 | 2 | ||||||||||||||||||||||||
| Research and Development expenses | 57 | 4,120 | 58 | 4,175 | (1 | ) | 57 | 4,157 | (1 | ) | ||||||||||||||||||||||
| Other (income) / expense, net | (9 | ) | (641 | ) | (2 | ) | (114 | ) | 463 | (4 | ) | (303 | ) | 112 | ||||||||||||||||||
| Results from operating activities | 70 | 5,046 | 52 | 3,808 | 33 | 66 | 4,768 | 6 | ||||||||||||||||||||||||
| Net finance (income) / expense | (9 | ) | (625 | ) | 0.3 | 24 | - | (2 | ) | (156 | ) | 301 | ||||||||||||||||||||
| Share of (profit) / loss of equity accounted investees, net of tax | (1 | ) | (109 | ) | (1 | ) | (92 | ) | 17 | (1 | ) | (83 | ) | 30 | ||||||||||||||||||
| Profit before income tax | 80 | 5,780 | 53 | 3,876 | 49 | 69 | 5,007 | 15 | ||||||||||||||||||||||||
| Income tax expense | 10 | 742 | 14 | 1,027 | (28 | ) | 6 | 446 | 67 | |||||||||||||||||||||||
| Profit for the period | 69 | 5,038 | 39 | 2,849 | 77 | 63 | 4,561 | 10 | ||||||||||||||||||||||||
| Diluted Earnings Per Share (EPS) | 0.42 | 30.31 | 0.24 | 17.15 | 77 | 0.38 | 27.45 | 10 |
| As % to Revenues | Q2 FY19 | Q2 FY18 | Q1 FY19 | |||||||||
| Gross Profit | 55.0 | 53.3 | 55.7 | |||||||||
| SG&A | 32.6 | 31.1 | 32.5 | |||||||||
| R&D | 10.8 | 11.8 | 11.2 | |||||||||
| EBITDA | 22.8 | 19.4 | 21.7 | |||||||||
| PBT | 15.2 | 10.9 | 13.5 | |||||||||
| PAT | 13.3 | 8.0 | 12.3 |
| Q2 FY19 | Q2 FY18 | Q1 FY19 | ||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | ||||||||||||||||||
| Profit before Income Tax | 80 | 5,780 | 53 | 3,876 | 69 | 5,007 | ||||||||||||||||||
| Interest (income) net* | (2 | ) | (132 | ) | 1 | 72 | (1 | ) | (46 | ) | ||||||||||||||
| Depreciation # | 28 | 2,033 | 29 | 2,078 | 31 | 2,214 | ||||||||||||||||||
| Amortization # | 13 | 965 | 12 | 862 | 12 | 896 | ||||||||||||||||||
| EBITDA | 119 | 8,646 | 95 | 6,888 | 111 | 8,071 |
* Includes income from Investments # includes impairment
Key Balance Sheet Items
| As on 30 th Sep, 2018 | As on 30 th June 2018 | As on 30 th Sep 2017 | ||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | ||||||||||||||||||
| Cash and cash equivalents and other investments | 287 | 20,837 | 235 | 17,047 | 232 | 16,793 | ||||||||||||||||||
| Trade receivables (current & non-current) | 639 | 46,317 | 663 | 48,095 | 582 | 42,203 | ||||||||||||||||||
| Inventories | 448 | 32,490 | 434 | 31,498 | 372 | 26,998 | ||||||||||||||||||
| Property, plant and equipment | 781 | 56,640 | 786 | 57,020 | 798 | 57,905 | ||||||||||||||||||
| Goodwill and Other Intangible assets | 707 | 51,290 | 679 | 49,289 | 684 | 49,634 | ||||||||||||||||||
| Loans and borrowings (current & non-current) | 765 | 55,522 | 748 | 54,273 | 740 | 53,668 | ||||||||||||||||||
| Trade and other payables | 194 | 14,073 | 204 | 14,816 | 196 | 14,193 | ||||||||||||||||||
| Equity | 1,812 | 1,31,446 | 1,798 | 1,30,430 | 1,680 | 1,21,840 |
Revenue Mix by Segment
| Q2 FY19 | Q2 FY18 | YoY | Q1 FY19 | QoQ | ||||||||||||||||
| Particulars | (Rs.) | (Rs.) | Growth % | (Rs.) | Growth % | |||||||||||||||
| Global Generics | 30,536 | 28,618 | 7 | 30,636 | 0 | |||||||||||||||
| North America | 14,265 | 14,318 | -0.4 | 15,903 | -10 | |||||||||||||||
| Europe | 1,915 | 2,424 | -21 | 2,016 | -5 | |||||||||||||||
| India | 6,864 | 6,370 | 8 | 6,074 | 13 | |||||||||||||||
| Emerging Markets | 7,492 | 5,506 | 36 | 6,643 | 13 | |||||||||||||||
| Pharmaceutical Services and Active Ingredients (PSAI) | 6,029 | 5,654 | 7 | 5,409 | 11 | |||||||||||||||
| Proprietary Products & Others | 1,413 | 1,188 | 19 | 1,162 | 22 | |||||||||||||||
| Total | 37,978 | 35,460 | 7 | 37,207 | 2 |
Revenues from GG segment at Rs.
30.5 billion. Year-on-year growth of 7%, primarily driven by contributions from Emerging Markets, India and favorable forex. Quarter-on-quarter
the sales remained flat.
As of 30th Sep 2018, cumulatively
113 generic filings are pending for approval with the USFDA (110 ANDAs and 3 NDAs under 505(b)(2) route). Of these 110 ANDAs, 63
are Para IVs out of which we believe 32 have First to File' status.
Pharmaceutical Services and Active Ingredients
Proprietary Products (PP)
Income Statement Highlights:
Earnings Call Details (06:00
pm IST, 08:30 am EDT, October 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 |
| Playback Code: | 07565# |
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 & 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