Full Press Release Details
| CONTACT | ||||
| DR. REDDY S LABORATORIES LTD. | INVESTOR RELATIONS | MEDIA RELATIONS | ||
| 8-2-337, Road No. 3, Banjara Hills, | KEDAR UPADHYE | CALVIN PRINTER | ||
| Hyderabad - 500034. Telangana, India. | kedaru@drreddys.com (Ph: +91-40-66834297) | calvinprinter@drreddys.com (Ph: +91-40- 49002121) |
Dr. Reddy s Q4 and FY16 Financial Results
| Q4 Revenues at Rs.37.6 billion | FY16 Revenues at Rs.154.7 billion | |
| (YoY decline of 3%) | (YoY growth of 4%) | |
| Q4 EBITDA at Rs.4.8 billion | FY16 EBITDA at Rs.36.3 billion | |
| (12.8% of the revenues) | (23.4% of the revenues) | |
| Q4 Adjusted EBITDA* at Rs.9.0 billion | FY16 Adjusted EBITDA* at Rs.41.2 billion | |
| (24.0% of the revenues) | (26.7% of the revenues) |
Hyderabad, India, May 12, 2016: Dr. Reddy s Laboratories Ltd. (NYSE: RDY | BSE:
500124 | NSE: DRREDDY) today announced its consolidated financial results for the fourth quarter and full year ended March 31, 2016 under International Financial Reporting Standards (IFRS).
FY16: Key Highlights
Q4 FY16: Key Highlights
Commenting on the company s fourth quarter results, Co-chairman and CEO, G V Prasad said It s been a challenging
quarter for Dr. Reddy s. While there has been a marginal decline in revenues, there has been a greater impact on profitability. This is mainly due to the provision, made as a matter of abundant precaution, to write down our outstanding
receivables from Venezuela. We will continue to actively engage with the Venezuelan Government to provide affordable medicine to fulfil the need of people of the country, subject to repatriation of funds.
Our Bio-similars business is gaining traction, as we have started to receive approvals and build partnerships for our products in the
emerging markets. Our topmost priority continues to be the strengthening of our quality management processes across the organisation.
Dr. Reddy s Laboratories Limited and Subsidiaries
Consolidated Income Statement
| FY 16 | FY 15 | Growth % | ||||||||||||||||||||||||||
| Particulars | ($) | (Rs.) | % | ($) | (Rs.) | % | ||||||||||||||||||||||
| Revenues | 2,335 | 1,54,708 | 100.0 | 2,237 | 1,48,189 | 100.0 | 4 | |||||||||||||||||||||
| Cost of revenues | 942 | 62,427 | 40.4 | 948 | 62,786 | 42.4 | (1 | ) | ||||||||||||||||||||
| Gross profit | 1,393 | 92,281 | 59.6 | 1,289 | 85,403 | 57.6 | 8 | |||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||
| Selling, general & administrative expenses | 690 | 45,702 | 29.5 | 643 | 42,585 | 28.7 | 7 | |||||||||||||||||||||
| Research and development expenses | 269 | 17,834 | 11.5 | 263 | 17,449 | 11.8 | 2 | |||||||||||||||||||||
| Other operating expense / (income) | (13 | ) | (874 | ) | (0.6 | ) | (14 | ) | (917 | ) | (0.6 | ) | (5 | ) | ||||||||||||||
| Results from operating activities | 447 | 29,619 | 19.1 | 397 | 26,286 | 17.7 | 13 | |||||||||||||||||||||
| Finance expense / (income), net | 41 | 2,708 | 1.8 | (25 | ) | (1,682 | ) | (1.1 | ) | NM | ||||||||||||||||||
| Share of (profit) of equity accounted investees, net of income tax | (3 | ) | (229 | ) | (0.1 | ) | (3 | ) | (195 | ) | (0.1 | ) | 18 | |||||||||||||||
| Profit before income tax | 410 | 27,140 | 17.5 | 425 | 28,163 | 19.0 | (4 | ) | ||||||||||||||||||||
| Income tax expense | 108 | 7,127 | 4.6 | 90 | 5,984 | 4.0 | 19 | |||||||||||||||||||||
| Profit for the period | 302 | 20,013 | 12.9 | 335 | 22,179 | 15.0 | (10 | ) | ||||||||||||||||||||
| Diluted EPS | 1.77 | 117 | 1.96 | 130 | (10 | ) |
| FY 16 | FY 15 | |||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | ||||||||||||
| Profit before tax | 410 | 27,140 | 425 | 28,163 | ||||||||||||
| Interest (income) / expense net* | (22 | ) | (1,425 | ) | (11 | ) | (724 | ) | ||||||||
| Depreciation | 104 | 6,874 | 86 | 5,719 | ||||||||||||
| Amortization | 52 | 3,469 | 36 | 2,381 | ||||||||||||
| Impairment | 2.9 | 194 | 9.5 | 629 | ||||||||||||
| EBITDA | 547 | 36,252 | 546 | 36,168 | ||||||||||||
| EBITDA (% to sales) | 23.4 | 24.4 | ||||||||||||||
| Adjusted** EBITDA (% to sales) | 26.7 | 25.0 |
The Company has not received approvals from the Venezuelan government to repatriate any amount beyond USD 4 million already
received during the year. The Company believes that in the interim, it is appropriate to use the DICOM rate (i.e. 272.5 VEF per USD) instead of official preferential rate (i.e. 10 VEF per USD) for translating the monetary assets and
liabilities of the Venezuelan subsidiary as at 31 March 2016. Accordingly, the resultant impact for Q4 FY 16 and Fiscal 2016 is Rs. 4,309 million and Rs. 5,085 million respectively. Similar charge on account of translation of net monetary
assets was Rs. 843 million accrued in Q4 FY 15.
Key Balance Sheet Items
| Particulars | As on 31 st Mar 16 | As on 31 st Mar 15 | ||||||||||||||
| ($) | (Rs.) | ($) | (Rs.) | |||||||||||||
| Cash and cash equivalents and Other current Investments | 603 | 39,955 | 599 | 39,654 | ||||||||||||
| Trade receivables | 623 | 41,306 | 615 | 40,755 | ||||||||||||
| Inventories | 386 | 25,578 | 385 | 25,529 | ||||||||||||
| Property, plant and equipment | 815 | 53,961 | 726 | 48,090 | ||||||||||||
| Goodwill and Other Intangible assets | 372 | 24,644 | 248 | 16,430 | ||||||||||||
| Loans and borrowings (current & non-current) | 506 | 33,513 | 651 | 43,125 | ||||||||||||
| Trade payables | 186 | 12,300 | 161 | 10,660 | ||||||||||||
| Equity | 1,937 | 1,28,336 | 1,680 | 1,11,302 |
Revenue Mix by Segment
| Particulars | FY 16 | FY 15 | Growth % | |||||||||||||||||||||||||
| ($) | (Rs.) | % | ($) | (Rs.) | % | |||||||||||||||||||||||
| Global Generics | 1,933 | 1,28,062 | 83 | 1,802 | 1,19,397 | 81 | 7 | |||||||||||||||||||||
| North America | 75,445 | 63,564 | 19 | |||||||||||||||||||||||||
| Europe* | 7,732 | 6,482 | 19 | |||||||||||||||||||||||||
| India | 21,293 | 17,870 | 19 | |||||||||||||||||||||||||
| Emerging Markets # | 23,592 | 31,482 | -25 | |||||||||||||||||||||||||
| PSAI | 338 | 22,379 | 14 | 384 | 25,456 | 17 | -12 | |||||||||||||||||||||
| North America | 3,052 | 4,605 | -34 | |||||||||||||||||||||||||
| Europe | 9,313 | 10,507 | -11 | |||||||||||||||||||||||||
| India | 2,618 | 3,288 | -20 | |||||||||||||||||||||||||
| Rest of World | 7,396 | 7,056 | 5 | |||||||||||||||||||||||||
| Proprietary Products & Others | 64 | 4,267 | 3 | 50 | 3,336 | 2 | 28 | |||||||||||||||||||||
| Total | 2,335 | 1,54,708 | 100 | 2,237 | 1,48,189 | 100 | 4 |
Note: Effective Q1 FY 16, there was a change in the monitoring of performance of one product from Global
Generics to Proprietary Products. Consequently, revenues and related costs of this product for the previous periods have been reclassified to conform to such change.
from Global Generics segment for FY16 are at Rs.128.1 billion, year-on-year growth of 7%; primarily driven by North America, Europe and India.
14 new generics filings in the US during the year (13 ANDAs and 1 NDA). Cumulatively, 82 generic filings are pending for
approval with the USFDA (79 ANDAs and 3 NDAs under 505(b)(2) route). Of these 79 ANDAs, 52 are Para IVs out of which we believe 18 have First to File status.
Pharmaceutical Services and Active Ingredients (PSAI)
Income Statement Highlights:
The board has recommended payment of a dividend of Rs. 20 per equity share of face value Rs 5/- each (400% of face value) for the year ended
March 31, 2016 subject to approval of members
Dr. Reddy s Laboratories Limited and Subsidiaries
Consolidated Income Statement
| Particulars | Q4 FY 16 | Q4 FY 15 | Growth % | |||||||||||||||||||||||||
| ($) | (Rs.) | % | ($) | (Rs.) | % | |||||||||||||||||||||||
| Revenues | 567 | 37,562 | 100.0 | 584 | 38,704 | 100.0 | (3 | ) | ||||||||||||||||||||
| Cost of revenues | 246 | 16,286 | 43.4 | 264 | 17,483 | 45.2 | (7 | ) | ||||||||||||||||||||
| Gross profit | 321 | 21,276 | 56.6 | 320 | 21,221 | 54.8 | 0 | |||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||
| Selling, general & administrative expenses | 176 | 11,632 | 31.0 | 152 | 10,082 | 26.0 | 15 | |||||||||||||||||||||
| Research and development expenses | 74 | 4,879 | 13.0 | 78 | 5,144 | 13.3 | (5 | ) | ||||||||||||||||||||
| Other operating expense / (income) | -5 | -307 | (0.8 | ) | -2 | -125 | (0.3 | ) | 145 | |||||||||||||||||||
| Results from operating activities | 77 | 5,072 | 13.5 | 92 | 6,120 | 15.8 | (17 | ) | ||||||||||||||||||||
| Finance expense / (income), net | 40 | 2,646 | 7.0 | 4 | 233 | 0.6 | NM | |||||||||||||||||||||
| Share of (profit) of equity accounted investees, net of income tax | -1 | -59 | (0.2 | ) | -1 | -43 | (0.1 | ) | 36 | |||||||||||||||||||
| Profit before income tax | 38 | 2,485 | 6.6 | 90 | 5,930 | 15.3 | (58 | ) | ||||||||||||||||||||
| Income tax expense | 26 | 1,739 | 4.6 | 11 | 742 | 1.9 | 134 | |||||||||||||||||||||
| Profit for the period | 11 | 746 | 2.0 | 78 | 5,188 | 13.4 | (86 | ) | ||||||||||||||||||||
| Diluted EPS | 0.07 | 4.4 | 0.46 | 30.4 | (86 | ) |
| Particulars | Q4 FY 16 | Q4 FY 15 | ||||||||||||||
| ($) | (Rs.) | ($) | (Rs.) | |||||||||||||
| Profit before tax | 38 | 2,485 | 90 | 5,930 | ||||||||||||
| Interest (income) / expense net* | (11 | ) | (713 | ) | (3 | ) | (194 | ) | ||||||||
| Depreciation | 31 | 2,062 | 23 | 1,530 | ||||||||||||
| Amortization | 15 | 970 | 11 | 699 | ||||||||||||
| Impairment | 1.4 | 95 | ||||||||||||||
| EBITDA | 73 | 4,804 | 122 | 8,061 | ||||||||||||
| EBITDA (% to sales) | 12.8 | 20.8 | ||||||||||||||
| Adjusted** EBITDA (% to sales) | 24.0 | 23.0 |
| Particulars | Q4 FY 16 | Q4 FY 15 | Growth % | |||||||||||||||||||||||||
| ($) | (Rs.) | % | ($) | (Rs.) | % | |||||||||||||||||||||||
| Global Generics | 465 | 30,774 | 82 | 464 | 30,717 | 80 | 0 | |||||||||||||||||||||
| North America | 18,950 | 16,879 | 12 | |||||||||||||||||||||||||
| Europe* | 1,759 | 2,145 | -18 | |||||||||||||||||||||||||
| India | 5,267 | 4,744 | 11 | |||||||||||||||||||||||||
| Emerging Markets # | 4,799 | 6,949 | -31 | |||||||||||||||||||||||||
| PSAI | 87 | 5,766 | 15 | 112 | 7,415 | 19 | -22 | |||||||||||||||||||||
| North America | 742 | 1,866 | -60 | |||||||||||||||||||||||||
| Europe | 2,585 | 2,639 | -2 | |||||||||||||||||||||||||
| India | 603 | 669 | -10 | |||||||||||||||||||||||||
| Rest of World | 1,835 | 2,241 | -18 | |||||||||||||||||||||||||
| Proprietary Products & Others | 15 | 1,022 | 3 | 8 | 572 | 1 | 79 | |||||||||||||||||||||
| Total | 567 | 37,562 | 100 | 584 | 38,704 | 100 | -3 |
Earnings Call Details (06.30 pm IST, May 12, 2016)
The Company will host an earnings call at 06.30 pm IST on May 12, 2016, to discuss the performance and answer any questions
from participants. This call will be accessible through an audio dial-in and a web-cast.
Audio conference Participants can
dial-in on the numbers below
| Primary number: | 91 22 3960 0616 | |||
| Secondary number: | 91 22 6746 5826 | |||
| International Toll Free Number | USA | 18667462133 | ||
| UK | 08081011573 | |||
| Singapore | 8001012045 | |||
| Hong Kong | 800964448 |
| Playback of call: | 91 22 3065 2322, 91 22 6181 3322 | |||
| Conference ID: | 375# | |||
| Web-cast | More details will be provided through our website, www.drreddys.com |
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. (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 gastro-intestinal, cardiovascular, diabetology, oncology, pain management and anti-infectives. Dr.
Reddy s operates in markets across the globe. Our major markets include USA, Russia & CIS, Venezuela and India. 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.