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. | AMIT AGARWAL amita@drreddys.com (Ph: +91-40-4900 2135) | MITALI SARKAR mitali.sarkar@drreddys.com (Ph: +91-40-4900 2121) |
Dr. Reddy's Q2 & H1 FY20 Financial Results
Hyderabad, India, November 1, 2019: Dr. Reddy's Laboratories Ltd. (BSE: 500124 | NSE: DRREDDY | NYSE: RDY) today announced its consolidated financial results for the quarter and the half year ended September 30, 2019 under International Financial Reporting Standards (IFRS).
| Q2 Performance Summary | H1 Performance Summary | |
| Rs. 4,801 Cr Revenue [Up: 25% QoQ; 26% YoY] 57.5% Gross Margin [Q1 FY20: 51.7%; Q2 FY19: 55.0%] Rs. 1,678 Cr SGNA expenses [Up: 39% QoQ, 36% YoY] Rs. 366 Cr R&D expenses [7.6% of Revenues] Rs. 766 Cr Profit before Tax [Down: 10% QoQ; Up: 33% YoY] Rs. 1,093 Cr Profit after Tax [Up: 65% QoQ; Up: 117% YoY] | Rs. 8,644 Cr Revenue [Up: 15% YoY] 54.9% Gross Margin [H1 FY19: 55.4%] Rs. 2,884 Cr SGNA expenses [Up: 18% YoY] Rs. 727 Cr R&D expenses [8.4% of Revenues] Rs. 1,616 Cr Profit before Tax [Up: 50% YoY] Rs. 1,755 Cr Profit after Tax [Up: 83% YoY] |
Commenting on the results, Co-Chairman and MD, GV Prasad said "I am pleased with our performance across the businesses and strong cash generation during the quarter. We are progressing well in execution of our strategy and in our transformation journey on quality and efficiency".
Dr. Reddy's Laboratories Limited and Subsidiaries
Consolidated Income Statement
| Q2 FY20 | Q2 FY19 | YoY | Q1 FY20 | QoQ | ||||||||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | Gr % | ($) | (Rs.) | Gr% | ||||||||||||||||||||||||
| Revenues | 680 | 48,009 | 538 | 37,978 | 26 | 544 | 38,435 | 25 | ||||||||||||||||||||||||
| Cost of Revenues | 289 | 20,389 | 242 | 17,081 | 19 | 263 | 18,576 | 10 | ||||||||||||||||||||||||
| Gross Profit | 391 | 27,620 | 296 | 20,897 | 32 | 281 | 19,859 | 39 | ||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||
| Selling, General & Administrative expenses | 238 | 16,777 | 175 | 12,372 | 36 | 171 | 12,065 | 39 | ||||||||||||||||||||||||
| Research and Development expenses | 52 | 3,662 | 58 | 4,120 | (11 | ) | 51 | 3,609 | 1 | |||||||||||||||||||||||
| Other operating (income) | -2 | -135 | -9 | -641 | (79 | ) | -53 | -3,759 | (96 | ) | ||||||||||||||||||||||
| Results from operating activities | 104 | 7,316 | 71 | 5,046 | 45 | 112 | 7,944 | (8 | ) | |||||||||||||||||||||||
| Net finance (income) | -3 | -231 | -9 | -625 | (63 | ) | -6 | -393 | (41 | ) | ||||||||||||||||||||||
| Share of (profit) / loss of equity accounted investees | -2 | -117 | -2 | -109 | 8 | -2 | -163 | (28 | ) | |||||||||||||||||||||||
| Profit before income tax | 108 | 7,664 | 82 | 5,780 | 33 | 120 | 8,500 | (10 | ) | |||||||||||||||||||||||
| Income tax expense / (benefit) | -46 | -3,261 | 11 | 742 | (539 | ) | 26 | 1,872 | (274 | ) | ||||||||||||||||||||||
| Profit for the period | 155 | 10,925 | 71 | 5,038 | 117 | 94 | 6,628 | 65 | ||||||||||||||||||||||||
| Diluted Earnings Per Share (EPS) | 0.93 | 65.82 | 0.43 | 30.31 | 117 | 0.57 | 39.91 | 65 |
| As % to Revenues | Q2 FY20 | Q2 FY19 | Q1 FY20 | |||||||||
| Gross Profit | 57.5 | 55.0 | 51.7 | |||||||||
| SG&A | 34.9 | 32.6 | 31.4 | |||||||||
| R&D | 7.6 | 10.8 | 9.4 | |||||||||
| EBITDA | 29.9 | 22.8 | 29.5 | |||||||||
| PBT | 16.0 | 15.2 | 22.1 | |||||||||
| PAT | 22.8 | 13.3 | 17.2 |
| Q2 FY20 | Q2 FY19 | Q1 FY20 | ||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | ||||||||||||||||||
| Profit before Income Tax | 108 | 7,664 | 82 | 5,780 | 120 | 8,500 | ||||||||||||||||||
| Interest (income) net* | -3 | (226 | ) | (2 | ) | (132 | ) | (3 | ) | (239 | ) | |||||||||||||
| Depreciation | 33 | 2,306 | 29 | 2,033 | 30 | 2,124 | ||||||||||||||||||
| Amortization | 15 | 1,033 | 14 | 965 | 14 | 959 | ||||||||||||||||||
| Impairment | 50 | 3,561 | - | - | (0 | ) | (1 | ) | ||||||||||||||||
| EBITDA | 203 | 14,338 | 122 | 8,646 | 161 | 11,343 |
* Includes income from Investments
Key Balance Sheet Items
| As on 30 th Sep, 2019 | As on 30 th June 2019 | As on 30 th Sep 2018 | ||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | ||||||||||||||||||
| Cash and cash equivalents and other investments | 431 | 30,446 | 403 | 28,439 | 295 | 20,837 | ||||||||||||||||||
| Trade receivables (current & non-current) | 597 | 42,153 | 537 | 37,961 | 656 | 46,317 | ||||||||||||||||||
| Inventories | 496 | 35,033 | 497 | 35,137 | 460 | 32,490 | ||||||||||||||||||
| Property, plant and equipment | 750 | 53,008 | 766 | 54,083 | 802 | 56,640 | ||||||||||||||||||
| Goodwill and Other Intangible assets | 628 | 44,340 | 677 | 47,821 | 726 | 51,290 | ||||||||||||||||||
| Loans and borrowings (current & non-current) | 447 | 31,545 | 487 | 34,387 | 786 | 55,522 | ||||||||||||||||||
| Trade payables | 218 | 15,434 | 210 | 14,842 | 199 | 14,073 | ||||||||||||||||||
| Equity | 2,177 | 1,53,816 | 2,070 | 1,46,208 | 1,861 | 1,31,446 |
Revenue Mix by Segment
| QoQ | ||||||||||||||||||||
| Q2 FY20 | Q2 FY19 | YoY | Q1 FY20 | Growth | ||||||||||||||||
| Particulars | (Rs.) | (Rs.) | Growth % | (Rs.) | % | |||||||||||||||
| Global Generics | 32,816 | 30,536 | 7 | % | 32,982 | -1 | % | |||||||||||||
| North America | 14,265 | 14,265 | 0 | % | 16,322 | -13 | % | |||||||||||||
| Europe | 2,764 | 1,915 | 44 | % | 2,404 | 15 | % | |||||||||||||
| India | 7,511 | 6,864 | 9 | % | 6,960 | 8 | % | |||||||||||||
| Emerging Markets | 8,276 | 7,492 | 10 | % | 7,296 | 13 | % | |||||||||||||
| Pharmaceutical Services and Active Ingredients (PSAI) | 7,107 | 6,029 | 18 | % | 4,539 | 57 | % | |||||||||||||
| Proprietary Products & Others | 8,086 | 1,413 | 472 | % | 914 | 785 | % | |||||||||||||
| Total | 48,009 | 37,978 | 26 | % | 38,435 | 25 | % |
Global Generics (GG)
Revenues from GG segment at Rs. 32.8 billion. Year-on-year growth of 7%, primarily driven by Europe, Emerging Markets and India. Sequentially declined by 1%.
As of 30th September 2019, cumulatively 99 generic filings are pending for approval with the USFDA (96 ANDAs and 3 NDAs under 505(b)(2) route). Of these 96 ANDAs, 55 are Para IVs out of which we believe 31 have First to File' status.
Pharmaceutical Services and Active Ingredients (PSAI)
Proprietary Products (PP)
Income Statement Highlights:
Earnings Call Details (06:30 pm IST, 09:00 am EDT, November 1, 2019)
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:
| Universal Access Number: | +91 22 6280 1219 | |
| Secondary number: | +91 22 7115 8120 | |
| Local Access number: | +91 70456 71221 | |
| (Available all over India) | ||
| International Toll Free Number | USA | 1 866 746 2133 |
| UK | 0 808 101 1573 | |
| Singapore | 800 101 2045 | |
| Hong Kong | 800 964 448 |
| Playback of call: | +91 22 7194 5757, +91 22 6663 5757 |
| Conference ID: | 31923 |
Transcript of the event will be available at www.drreddys.com. Playback will be available after the earnings call, till November 8, 2019.
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.