Full Press Release Details
| CONTACT | ||
| DR. REDDY'S LABORATORIES LTD. | INVESTOR RELATIONS | MEDIA RELATIONS |
| 8-2-337, Road No. 3, Banjara Hills, | SAUNAK SAVLA | CALVIN PRINTER |
| Hyderabad - 500034. Telangana, India. | saunaks@drreddys.com | calvinprinter@drreddys.com |
| (Ph: +91-40-4900 2135) | (Ph: +91-40-4900 2121) |
Reddy's Q2 and H1 FY18 Financial Results
| Q2 Revenues at Rs. 35.5 Bn | H1 Revenues at Rs. 68.6 Bn | |
| [QoQ growth: 7%; YoY decline: 1%] | [YoY growth: 1%] | |
| Q2 EBITDA at Rs. 6.9 Bn | H1 EBITDA at Rs. 10.2 Bn | |
| [19.4% of Revenues] | [14.9% of Revenues] |
Hyderabad, India, October
31, 2017: Dr. Reddy's Laboratories Ltd. (BSE: 500124 | NSE: DRREDDY | NYSE: RDY) today announced its consolidated financial
results for the second quarter and half year ended September 30, 2017 under International Financial Reporting Standards (IFRS).
Q2 FY18: Key Highlights
H1 FY18: Key Highlights
Commenting on the results,
CEO and Co-chairman, G.V. Prasad said, "Healthy performances in India, Emerging Markets, Europe and PSAI businesses, as well
as continued focus on cost control, have contributed to sequential growth in our topline as well as bottom line, with an EBITDA
increase of 105% over the previous quarter.
Looking ahead, we expect
to see results from products launched in the U.S. during the first half of this fiscal. We will continue to focus on the launching
of new products, as well as on improving operational efficiencies and quality management systems across the company."
Dr. Reddy's Laboratories Limited
Consolidated Income Statement
| Particulars | Q2 FY 18 | Q2 FY 17 | Growth | |||||||||||||||||||||||||
| ($) | (Rs.) | % | ($) | (Rs.) | % | % | ||||||||||||||||||||||
| Revenues | 543 | 35,460 | 100.0 | 549 | 35,857 | 100.0 | (1 | ) | ||||||||||||||||||||
| Cost of revenues | 254 | 16,559 | 46.7 | 241 | 15,760 | 44.0 | 5 | |||||||||||||||||||||
| Gross profit | 289 | 18,901 | 53.3 | 308 | 20,097 | 56.0 | (6 | ) | ||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||
| Selling, general & administrative expenses | 169 | 11,032 | 31.1 | 180 | 11,774 | 32.8 | (6 | ) | ||||||||||||||||||||
| Research and development expenses | 64 | 4,175 | 11.8 | 80 | 5,214 | 14.5 | (20 | ) | ||||||||||||||||||||
| Other operating expense / (income) | (2 | ) | (114 | ) | (0.3 | ) | (4 | ) | (277 | ) | (0.8 | ) | (59 | ) | ||||||||||||||
| Results from operating activities | 58 | 3,808 | 10.7 | 52 | 3,386 | 9.4 | 12 | |||||||||||||||||||||
| Finance expense / (income), net | 0 | 24 | 0.1 | (6 | ) | (365 | ) | (1.0 | ) | |||||||||||||||||||
| Share of (profit) of equity accounted investees, net of income tax | (1 | ) | (92 | ) | (0.3 | ) | (1 | ) | (84 | ) | (0.2 | ) | 10 | |||||||||||||||
| Profit before income tax | 59 | 3,876 | 10.9 | 59 | 3,835 | 10.7 | 1 | |||||||||||||||||||||
| Income tax expense | 16 | 1,027 | 2.9 | 14 | 885 | 2.5 | 16 | |||||||||||||||||||||
| Profit for the period | 44 | 2,849 | 8.0 | 45 | 2,950 | 8.2 | (3 | ) | ||||||||||||||||||||
| Diluted EPS | 0.26 | 17.15 | 0.27 | 17.76 | (3 | ) |
| Particulars | Q2 FY 18 | Q2 FY 17 | ||||||||||||||
| ($) | (Rs.) | ($) | (Rs.) | |||||||||||||
| Profit before income tax | 59 | 3,876 | 59 | 3,835 | ||||||||||||
| Interest (income) / expense net* | 1 | 72 | (5 | ) | (329 | ) | ||||||||||
| Depreciation | 32 | 2,078 | 29 | 1,897 | ||||||||||||
| Amortization | 13 | 862 | 15 | 950 | ||||||||||||
| Impairment | - | - | 1 | 67 | ||||||||||||
| EBITDA | 105 | 6,888 | 98 | 6,420 | ||||||||||||
| EBITDA (% to sales) | 19.4 | 17.9 |
* - Includes income from Investments
Key Balance Sheet Items
| Particulars | As on 30 th Sep 17 | As on 30 th June 17 | ||||||||||||||
| ($) | (Rs.) | ($) | (Rs.) | |||||||||||||
| Cash and cash equivalents and Other current Investments | 257 | 16,793 | 223 | 14,572 | ||||||||||||
| Trade receivables | 646 | 42,203 | 630 | 41,140 | ||||||||||||
| Inventories | 413 | 26,998 | 430 | 28,095 | ||||||||||||
| Property, plant and equipment | 887 | 57,905 | 882 | 57,611 | ||||||||||||
| Goodwill and Other Intangible assets | 760 | 49,634 | 744 | 48,564 | ||||||||||||
| Loans and borrowings (current & non-current) | 822 | 53,668 | 773 | 50,462 | ||||||||||||
| Trade payables | 217 | 14,193 | 203 | 13,225 | ||||||||||||
| Equity | 1,866 | 1,21,840 | 1,890 | 1,23,423 |
Revenue Mix by Segment [Year on year]
| Particulars | Q2 FY 18 | Q2 FY 17 | Growth | |||||||||||||||||||||||||
| ($) | (Rs.) | % | ($) | (Rs.) | % | % | ||||||||||||||||||||||
| Global Generics | 438 | 28,618 | 81 | % | 444 | 28,995 | 81 | % | -1 | |||||||||||||||||||
| North America | 14,318 | 16,134 | -11 | |||||||||||||||||||||||||
| Europe* | 2,424 | 1,776 | 36 | |||||||||||||||||||||||||
| India | 6,370 | 6,251 | 2 | |||||||||||||||||||||||||
| Emerging Markets # | 5,506 | 4,834 | 14 | |||||||||||||||||||||||||
| PSAI | 87 | 5,654 | 16 | % | 89 | 5,784 | 16 | % | -2 | |||||||||||||||||||
| North America | 962 | 1,135 | -15 | |||||||||||||||||||||||||
| Europe | 1,938 | 2,095 | -7 | |||||||||||||||||||||||||
| India | 436 | 575 | -24 | |||||||||||||||||||||||||
| Rest of World | 2,318 | 1,979 | 17 | |||||||||||||||||||||||||
| Proprietary Products & Others | 18 | 1,188 | 3 | % | 17 | 1,078 | 3 | % | 10 | |||||||||||||||||||
| Total | 543 | 35,460 | 100 | % | 549 | 35,857 | 100 | % | -1 |
Revenue Mix by Segment [Sequential]
| Particulars | Q2 FY 18 | Q1 FY 18 | Growth | |||||||||||||||||||||||||
| ($) | (Rs.) | % | ($) | (Rs.) | % | % | ||||||||||||||||||||||
| Global Generics | 438 | 28,618 | 81 | 420 | 27,455 | 83 | % | 4 | ||||||||||||||||||||
| North America | 14,318 | 14,946 | -4 | |||||||||||||||||||||||||
| Europe* | 2,424 | 2,075 | 17 | |||||||||||||||||||||||||
| India | 6,370 | 4,687 | 36 | |||||||||||||||||||||||||
| Emerging Markets # | 5,506 | 5,747 | -4 | |||||||||||||||||||||||||
| PSAI | 87 | 5,654 | 16 | 71 | 4,651 | 14 | % | 22 | ||||||||||||||||||||
| North America | 962 | 779 | 23 | |||||||||||||||||||||||||
| Europe | 1,938 | 1,863 | 4 | |||||||||||||||||||||||||
| India | 436 | 288 | 51 | |||||||||||||||||||||||||
| Rest of World | 2,318 | 1,721 | 35 | |||||||||||||||||||||||||
| Proprietary Products & Others | 18 | 1,188 | 3 | 16 | 1,053 | 3 | % | 13 | ||||||||||||||||||||
| Total | 543 | 35,460 | 100 | % | 508 | 33,159 | 100 | % | 7 |
Global Generics (GG)
Revenues from GG segment
at Rs. 28.6 billion, year-on-year marginal decline of 1%; decline primarily on account of lower contribution from North America
offset by increased contribution from Europe, India and Emerging Markets.
During the quarter we launched
4 new products i.e. Sevelamer Carbonate, Cefixime OS, Bupropion XL and Metaxalone tabs. Since Sevelamer carbonate was launched
post the cut-off date for revenue recognition, no sales have been recorded during the quarter.
As of 30th September
2017, cumulatively 103 generic filings are pending for approval with the USFDA (100 ANDAs and 3 NDAs under 505(b)(2) route). Of
these 100 ANDAs, 60 are Para IVs out of which we believe 28 have First to File' status.
Pharmaceutical Services and Active Ingredients
Income Statement Highlights:
Gross profit margins improved
170 bps sequentially, aided by favorable manufacturing overheads leverage (higher revenues and lower overheads).
Earnings Call Details (06:30
pm IST, 09:00 am EDT, October 31, 2017)
The Company will host an earnings
call to discuss the performance and answer any questions from participants. This call will be accessible through an audio dial-in
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.
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 gastro-intestinal, cardiovascular, diabetology, oncology, pain management and dermatology. Dr. Reddy's operates
in markets across the globe. Our major markets include - USA, India, Russia and other CIS countries. 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.