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: +91-98661 74248) | USHA iyer ushaiyer@drreddys.com ( Ph: +91-99874 44106 ) |
Reddy's Q4 & FY21 Financial Results
Hyderabad, India, May 14, 2021: Dr. Reddy's Laboratories
Ltd. (BSE: 500124 | NSE: DRREDDY | NYSE: RDY | NSEIFSC: DRREDDY) today announced its consolidated financial results for the fourth
quarter and full year ended March 31, 2021. The information mentioned in this release is on the basis of consolidated financial
statements under International Financial Reporting Standards (IFRS).
| Q 4 Performance Summary | FY21 Performance Summary | |
| Rs. 4,728 Cr | Rs. 18,972 Cr | |
| Revenue | Revenue | |
| [Up: 7% YoY; Down: 4% QoQ] | [Up: 9% YoY] | |
| 53.7% | 54.3% | |
| Gross Margin | Gross Margin | |
| [Q4 FY20: 51.5%; Q3 FY21: 53.8%] | [FY20: 53.8%] | |
| Rs.1,428 Cr | Rs. 5,456 Cr | |
| SGNA expenses | SGNA expenses | |
| [Up: 17% YoY; Down: 1% QoQ] | [Up: 9% YoY] | |
| Rs. 409 Cr | Rs. 1,654 Cr | |
| R&D expenses | R&D expenses | |
| [8.7% of Revenues] | [8.7% of Revenues] | |
| Rs. 1,133 Cr | Rs. 4,748 Cr | |
| EBITDA | EBITDA | |
| [24.0% of Revenues; Up: 13% YoY; Down: 4% QoQ] | [25.0% of Revenues; Up: 2% YoY] | |
| Rs. 807 Cr | Rs. 2,832 Cr | |
| Profit before Tax | Profit before Tax | |
| [Up: 13% YoY; 184% QoQ] | [Up: 57% YoY] | |
| Rs. 554 Cr | Rs. 1,915 Cr | |
| Profit after Tax | Profit after Tax | |
| [Down: 28% YoY; Up: 2695% QoQ] | [Down: 2% YoY] |
Commenting on the results, Co-Chairman & MD, G V Prasad said
"In FY 21, we continued to grow across all our businesses, enhance productivity and strengthen our development pipeline.
We are prioritizing our efforts to launch Sputnik V vaccine across India while working on the development and commercialization
of several drugs for the treatment of mild to severe COVID 19 infections."
Reddy's Laboratories Limited and Subsidiaries
| Q4 FY21 | Q4 FY20 | YoY | Q3 FY21 | QoQ | ||||||||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | Gr % | ($) | (Rs.) | Gr% | ||||||||||||||||||||||||
| Revenues | 646 | 47,284 | 606 | 44,318 | 7 | 674 | 49,296 | (4 | ) | |||||||||||||||||||||||
| Cost of Revenues | 300 | 21,909 | 294 | 21,510 | 2 | 311 | 22,758 | (4 | ) | |||||||||||||||||||||||
| Gross Profit | 347 | 25,375 | 312 | 22,808 | 11 | 363 | 26,538 | (4 | ) | |||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||
| Selling, General & Administrative expenses | 195 | 14,279 | 166 | 12,177 | 17 | 197 | 14,387 | (1 | ) | |||||||||||||||||||||||
| Research and Development expenses | 56 | 4,094 | 57 | 4,190 | (2 | ) | 56 | 4,108 | (0 | ) | ||||||||||||||||||||||
| Impairment of non-current assets | 0 | 15 | 0 | 7 | 114 | 82 | 5,972 | (100 | ) | |||||||||||||||||||||||
| Other operating income | (8 | ) | (587 | ) | (2 | ) | (168 | ) | 249 | (2 | ) | (128 | ) | 359 | ||||||||||||||||||
| Results from operating activities | 104 | 7,574 | 90 | 6,602 | 15 | 30 | 2,199 | 244 | ||||||||||||||||||||||||
| Net finance income | (4 | ) | (318 | ) | (6 | ) | (435 | ) | (27 | ) | (7 | ) | (493 | ) | (35 | ) | ||||||||||||||||
| Share of profit of equity accounted investees | (2 | ) | (179 | ) | (1 | ) | (105 | ) | 70 | (2 | ) | (151 | ) | 19 | ||||||||||||||||||
| Profit before income tax | 110 | 8,071 | 98 | 7,142 | 13 | 39 | 2,843 | 184 | ||||||||||||||||||||||||
| Income tax expense / (benefit) | 35 | 2,536 | (7 | ) | (500 | ) | (607 | ) | 36 | 2,645 | (4 | ) | ||||||||||||||||||||
| Profit for the period | 76 | 5,535 | 104 | 7,642 | (28 | ) | 3 | 198 | 2695 | |||||||||||||||||||||||
| Diluted Earnings Per Share (EPS) | 0.46 | 33.29 | 0.63 | 46.01 | (28 | ) | 0.02 | 1.19 | 2705 |
| As % to revenues | Q4 FY21 | Q4 FY20 | Q3 FY21 | |||||||||
| Gross Profit | 53.7 | 51.5 | 53.8 | |||||||||
| SG&A | 30.2 | 27.5 | 29.2 | |||||||||
| R&D | 8.7 | 9.5 | 8.3 | |||||||||
| EBITDA | 24.0 | 22.6 | 24.0 | |||||||||
| PBT | 17.1 | 16.1 | 5.8 | |||||||||
| PAT | 11.7 | 17.2 | 0.4 |
| Q4 FY21 | Q4 FY20 | Q3 FY21 | ||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | ||||||||||||||||||
| Profit before Income Tax | 110 | 8,071 | 98 | 7,142 | 39 | 2,843 | ||||||||||||||||||
| Interest (income) / expense (net)* | 1 | 75 | (1 | ) | (100 | ) | (2 | ) | (180 | ) | ||||||||||||||
| Depreciation | 29 | 2,089 | 28 | 2,080 | 29 | 2,131 | ||||||||||||||||||
| Amortization | 15 | 1,080 | 12 | 885 | 15 | 1,086 | ||||||||||||||||||
| Impairment | 0 | 15 | 0 | 7 | 82 | 5,972 | ||||||||||||||||||
| EBITDA | 155 | 11,330 | 137 | 10,013 | 162 | 11,851 |
Revenue Mix by Segment
| Q4 FY21 | Q4 FY20 | YoY | Q3 FY21 | QoQ | ||||||||||||||||
| Segment | (Rs.) | (Rs.) | Gr % | (Rs.) | Gr % | |||||||||||||||
| Global Generics | 38,737 | 36,398 | 6 | 40,751 | (5 | ) | ||||||||||||||
| North America | 17,491 | 18,072 | (3 | ) | 17,394 | 1 | ||||||||||||||
| Europe | 3,956 | 3,446 | 15 | 4,143 | (5 | ) | ||||||||||||||
| India | 8,445 | 6,839 | 23 | 9,591 | (12 | ) | ||||||||||||||
| Emerging Markets | 8,845 | 8,041 | 10 | 9,623 | (8 | ) | ||||||||||||||
| Pharmaceutical Services and Active Ingredients (PSAI) | 7,915 | 7,195 | 10 | 7,009 | 13 | |||||||||||||||
| Proprietary Products & Others | 632 | 725 | (13 | ) | 1,536 | (59 | ) | |||||||||||||
| Total | 47,284 | 44,318 | 7 | 49,296 | (4 | ) |
Laboratories Limited and Subsidiaries
Consolidated Income Statement
| FY21 | FY20 | Gr | ||||||||||||||||||||||||||
| Particulars | ($) | (Rs.) | % | ($) | (Rs.) | % | % | |||||||||||||||||||||
| Revenue | 2,594 | 1,89,722 | 100.0 | 2,387 | 1,74,600 | 100.0 | 9 | |||||||||||||||||||||
| Cost of revenues | 1,185 | 86,645 | 45.7 | 1,102 | 80,591 | 46.2 | 8 | |||||||||||||||||||||
| Gross profit | 1,409 | 1,03,077 | 54.3 | 1,285 | 94,009 | 53.8 | 10 | |||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||
| Selling, General & Administrative expenses | 746 | 54,559 | 28.8 | 685 | 50,129 | 28.7 | 9 | |||||||||||||||||||||
| Research and Development expenses | 226 | 16,541 | 8.7 | 211 | 15,410 | 8.8 | 7 | |||||||||||||||||||||
| Impairment of non-current assets | 93 | 6,768 | 3.6 | 229 | 16,767 | 9.6 | (60 | ) | ||||||||||||||||||||
| Other operating income | (13 | ) | (982 | ) | (0.5 | ) | (59 | ) | (4,290 | ) | (2.5 | ) | (77 | ) | ||||||||||||||
| Results from operating activities | 358 | 26,191 | 13.8 | 219 | 15,993 | 9.2 | 64 | |||||||||||||||||||||
| Net finance income | (23 | ) | (1,653 | ) | (0.9 | ) | (20 | ) | (1,478 | ) | (0.8 | ) | 12 | |||||||||||||||
| Share of profit of equity accounted investees | (7 | ) | (480 | ) | (0.3 | ) | (8 | ) | (561 | ) | (0.3 | ) | (14 | ) | ||||||||||||||
| Profit before income tax | 387 | 28,324 | 14.9 | 247 | 18,032 | 10.3 | 57 | |||||||||||||||||||||
| Income tax expense / (benefit) | 125 | 9,175 | 4.8 | (20 | ) | (1,466 | ) | (0.8 | ) | (726 | ) | |||||||||||||||||
| Profit for the period | 262 | 19,149 | 10.1 | 267 | 19,498 | 11.2 | (2 | ) | ||||||||||||||||||||
| Diluted EPS | 1.57 | 115.14 | 1.61 | 117.40 | (2 | ) |
| FY21 | FY20 | |||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | ||||||||||||
| Profit before Income Tax | 387 | 28,324 | 247 | 18,032 | ||||||||||||
| Interest income (net)* | (6 | ) | (412 | ) | (11 | ) | (839 | ) | ||||||||
| Depreciation | 117 | 8,527 | 118 | 8,640 | ||||||||||||
| Amortization | 58 | 4,269 | 52 | 3,832 | ||||||||||||
| Impairment | 93 | 6,768 | 229 | 16,767 | ||||||||||||
| EBITDA | 649 | 47,477 | 635 | 46,431 |
Key Balance Sheet Items
| As on 31st Mar 2021 | As on 31st Dec 2020 | As on 31st Mar 2020 | ||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | ||||||||||||||||||
| Cash and cash equivalents and other investments | 540 | 39,531 | 291 | 21,282 | 356 | 26,068 | ||||||||||||||||||
| Trade receivables (current & non-current) | 680 | 49,759 | 730 | 53,408 | 711 | 52,015 | ||||||||||||||||||
| Inventories | 621 | 45,412 | 606 | 44,309 | 479 | 35,066 | ||||||||||||||||||
| Property, plant and equipment | 781 | 57,111 | 769 | 56,263 | 716 | 52,332 | ||||||||||||||||||
| Goodwill and Other Intangible assets | 550 | 40,216 | 561 | 41,062 | 433 | 31,653 | ||||||||||||||||||
| Loans and borrowings (current & non-current) | 414 | 30,308 | 280 | 20,443 | 302 | 22,102 | ||||||||||||||||||
| Trade payables | 300 | 21,916 | 315 | 23,072 | 228 | 16,659 | ||||||||||||||||||
| Equity | 2,392 | 1,74,981 | 2,316 | 1,69,395 | 2,119 | 1,54,988 |
Revenue Mix by Segment [year on year]
| FY21 | FY20 | Gr | ||||||||||||||||||||||||||
| Segment | ($) | (Rs.) | % | ($) | (Rs.) | % | % | |||||||||||||||||||||
| Global Generics | 2,111 | 1,54,404 | 81.4 | 1,888 | 1,38,123 | 79.1 | 12 | |||||||||||||||||||||
| North America | 70,494 | 64,659 | 9 | |||||||||||||||||||||||||
| Europe | 15,404 | 11,707 | 32 | |||||||||||||||||||||||||
| India | 33,419 | 28,946 | 15 | |||||||||||||||||||||||||
| Emerging Markets | 35,087 | 32,812 | 7 | |||||||||||||||||||||||||
| Pharmaceutical Services and Active Ingredients (PSAI) | 437 | 31,982 | 16.9 | 352 | 25,747 | 14.7 | 24 | |||||||||||||||||||||
| Proprietary Products & Others | 46 | 3,336 | 1.8 | 147 | 10,730 | 6.1 | (69 | ) | ||||||||||||||||||||
| Total | 2,594 | 1,89,722 | 100.0 | 2,387 | 1,74,600 | 100.0 | 9 |
We continue to play our role in the fight against Covid-19 by acting
proactively to bring multiple preventive and curative treatment options, including a vaccine. Some of our major Covid-19 products
Sputnik V vaccine: The trials demonstrated efficacy @ 91.6%,
consistent safety and immunogenicity results. In April, 2021 we received Emergency Use Authorization (EUA) for the vaccine. We
have launched it today and the first dose of the vaccine was administered. Our priority is to ensure widest reach in the shortest
Remdesivir: We launched it in India and have ramped up our
supplies to meet with the higher demand due to surge of the COVID cases in India.
Avigan (Favipiravir): We are selling it in India and
few other markets. We are conducting phase 3 trials in North America for outpatient setting with mild to moderate symptoms.
2-deoxy-D-glucose (2-DG): We developed it in collaboration
with DRDO lab. Received EUA as adjunct therapy for hospitalized moderate to severe Covid-19 patients.
Other Covid drugs: We are also working on Molnupiravir, Baricitinib
and several other covid drugs for treatment ranging from mild to severe conditions.
Revenue Analysis [Q4 and full
Global Generics (GG)
Pharmaceutical Services and Active Ingredients (PSAI)
Proprietary Products (PP) & Others
Income Statement Highlights:
Earnings Call Details (05:30 pm
IST, 08:00 am EDT, May 14, 2021)
The management of the Company will host an earnings call to discuss
the Company's financial performance and answer any questions from the participants.
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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) 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
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 identiFYforward-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, (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, 2020. The company assumes no obligation
to update any information contained herein.