Full Press Release Details
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| DR. REDDY'S LABORATORIES LTD. | Investor relationS | Media relationS |
| 8-2-337, Road No. 3, Banjara Hills, | AMIT AGARWAL | CALVIN PRINTER |
| Hyderabad - 500034. Telangana, India. | amita@drreddys.com | calvinprinter@drreddys.com |
| (Ph: +91-40-4900 2135) | (Ph: +91-40-4900 2121) |
Q3 FY19 Financial Results
Hyderabad, India, February 1, 2019: Dr. Reddy's
Laboratories Ltd. (BSE: 500124 | NSE: DRREDDY | NYSE: RDY) today announced its consolidated financial results for the quarter ended
December 31, 2018 under International Financial Reporting Standards (IFRS).
Commenting on the results, CEO and Co-chairman, G.V. Prasad
said "We continued to improve our performance in the third quarter of FY 19, supported by significant growth in emerging markets
and India, pickup in new product launches, and improvements in cost structure. We are on track towards delivering sustainable &
Dr. Reddy's Laboratories Limited
Consolidated Income Statement
| Q3 FY19 | Q3 FY18 | YoY | Q2 FY19 | QoQ | ||||||||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | Gr % | ($) | (Rs.) | Gr% | ||||||||||||||||||||||||
| Revenues | 553 | 38,500 | 547 | 38,060 | 1 | 546 | 37,978 | 1 | ||||||||||||||||||||||||
| Cost of Revenues | 255 | 17,748 | 239 | 16,649 | 7 | 245 | 17,081 | 4 | ||||||||||||||||||||||||
| Gross Profit | 298 | 20,752 | 308 | 21,411 | (3 | ) | 300 | 20,897 | (1 | ) | ||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||
| Selling, General & Administrative expenses | 173 | 12,036 | 173 | 12,048 | (0 | ) | 178 | 12,372 | (3 | ) | ||||||||||||||||||||||
| Research and Development expenses | 53 | 3,668 | 67 | 4,667 | (21 | ) | 59 | 4,120 | (11 | ) | ||||||||||||||||||||||
| Other (income) / expense net | (10 | ) | (681 | ) | (4 | ) | (313 | ) | 118 | (9 | ) | (641 | ) | 6 | ||||||||||||||||||
| Results from operating activities | 82 | 5,729 | 72 | 5,009 | 14 | 73 | 5,046 | 14 | ||||||||||||||||||||||||
| Net finance (income) / expense | 0 | 13 | (12 | ) | (851 | ) | (102 | ) | (9 | ) | (625 | ) | (102 | ) | ||||||||||||||||||
| Share of (profit) / loss of equity accounted investees, net of tax | (1 | ) | (89 | ) | (1 | ) | (85 | ) | 5 | (2 | ) | (109 | ) | (18 | ) | |||||||||||||||||
| Profit before income tax | 83 | 5,805 | 85 | 5,945 | (2 | ) | 83 | 5,780 | 0 | |||||||||||||||||||||||
| Income tax expense | 14 | 953 | 37 | 2,601 | * | (63 | ) | 11 | 742 | 28 | ||||||||||||||||||||||
| Profit for the period | 70 | 4,852 | 48 | 3,344 | 45 | 72 | 5,038 | (4 | ) | |||||||||||||||||||||||
| Diluted Earnings Per Share (EPS) | 0.42 | 29.21 | 0.29 | 20.13 | 45 | 0.44 | 30.31 | (4 | ) |
* ~ Rs. 930 million impact on account of reforms in
| As % to Revenues | Q3 FY19 | Q3 FY18 | Q2 FY19 | |||||||||
| Gross Profit | 53.9 | 56.3 | 55.0 | |||||||||
| SG&A | 31.3 | 31.7 | 32.6 | |||||||||
| R&D | 9.5 | 12.3 | 10.8 | |||||||||
| EBITDA | 22.5 | 21.2 | 22.8 | |||||||||
| PBT | 15.1 | 15.6 | 15.2 | |||||||||
| PAT | 12.6 | 8.8 | 13.3 |
| Q3 FY19 | Q3 FY18 | Q2 FY19 | ||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | ||||||||||||||||||
| Profit before Income Tax | 83 | 5,805 | 85 | 5,945 | 83 | 5,780 | ||||||||||||||||||
| Interest (income) net* | (4 | ) | (260 | ) | (13 | ) | (881 | ) | (2 | ) | (132 | ) | ||||||||||||
| Depreciation | 30 | 2,073 | 30 | 2,089 | 29 | 2,033 | ||||||||||||||||||
| Amortization | 15 | 1,035 | 13 | 902 | 14 | 965 | ||||||||||||||||||
| EBITDA | 124 | 8,653 | 116 | 8,055 | 124 | 8,646 |
* Includes income from Investments
Key Balance Sheet Items
| As on 31 st Dec, 2018 | As on 30 th Sep, 2018 | As on 31 st Dec, 2017 | ||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | ||||||||||||||||||
| Cash and cash equivalents and other investments | 368 | 25,593 | 299 | 20,837 | 360 | 25,032 | ||||||||||||||||||
| Trade receivables (current & non-current) | 536 | 37,302 | 666 | 46,317 | 612 | 42,593 | ||||||||||||||||||
| Inventories | 487 | 33,911 | 467 | 32,490 | 386 | 26,825 | ||||||||||||||||||
| Property, plant and equipment | 795 | 55,344 | 814 | 56,640 | 836 | 58,189 | ||||||||||||||||||
| Goodwill and Other Intangible assets | 707 | 49,205 | 737 | 51,290 | 692 | 48,182 | ||||||||||||||||||
| Loans and borrowings (current & non-current) | 630 | 43,836 | 798 | 55,522 | 789 | 54,911 | ||||||||||||||||||
| Trade payables | 229 | 15,939 | 202 | 14,073 | 209 | 14,575 | ||||||||||||||||||
| Equity | 1,950 | 1,35,708 | 1,889 | 1,31,446 | 1,778 | 1,23,685 |
Revenue Mix by Segment
| Q3 FY19 | Q3 FY18 | YoY | Q2 FY19 | QoQ | ||||||||||||||||
| Particulars | (Rs.) | (Rs.) | Growth % | (Rs.) | Growth % | |||||||||||||||
| Global Generics | 31,347 | 30,105 | 4 | 30,536 | 3 | |||||||||||||||
| North America | 14,832 | 16,073 | (8 | ) | 14,265 | 4 | ||||||||||||||
| Europe | 2,030 | 2,006 | 1 | 1,915 | 6 | |||||||||||||||
| India | 6,741 | 6,126 | 10 | 6,864 | (2 | ) | ||||||||||||||
| Emerging Markets | 7,744 | 5,900 | 31 | 7,492 | 3 | |||||||||||||||
| Pharmaceutical Services and Active Ingredients (PSAI) | 5,937 | 5,436 | 9 | 6,029 | (2 | ) | ||||||||||||||
| Proprietary Products & Others | 1,216 | 2,519 | (52 | ) | 1,413 | (14 | ) | |||||||||||||
| Total | 38,500 | 38,060 | 1 | 37,978 | 1 |
Revenues from GG segment at Rs.
31.3 billion. Year-on-year growth of 4%, primarily driven by contributions from Emerging Markets, India and favorable forex. Sequentially
the sales grew by 3%.
During the quarter, 10 new products were
launched and we have filed 3 ANDAs with the USFDA.
As of 31st Dec 2018, 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, 59
are Para IVs, and we believe 33 have First to File' status.
Pharmaceutical Services and Active Ingredients
Proprietary Products (PP)
Income Statement Highlights:
Earnings Call Details (06:30
pm IST, 08:00 am EST, February 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
| 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 |
| Conference ID: | 37176 |
Playback will be available after the earnings call, through
Transcript of the call will be available at 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
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