Full Press Release Details
| CONTACT | ||
| DR. REDDY'S LABORATORIES LTD. | Investor relationS | Media relationS |
| 8-2-337, Road No. 3, Banjara Hills, Hyderabad - 500034. Telangana, India. | AMIT AGARWAL amita@drreddys.com (Ph: +91-40-4900 2135) | APARNA TEKURI aparnatekuri@drreddys.com (Ph: +91-40-4900 2446) |
Q4 & FY20 Financial Results
Hyderabad, India, May 20, 2020: Dr.
Reddy's Laboratories Ltd. (BSE: 500124 | NSE: DRREDDY | NYSE: RDY) today announced its consolidated financial results for
the fourth quarter and full year ended March 31, 2020 under International Financial Reporting Standards (IFRS).
| Q4 Performance Summary | FY20 Performance Summary | |
| Rs. 4,432 Cr Revenue [Up: 1% QoQ; Up: 10% YoY] 51.5% Gross Margin [Q3 FY20: 54.1%; Q4 FY19: 52.4%] Rs. 1,218 Cr SGNA expenses [Down: 4% QoQ, Down: 1% YoY] Rs. 419 Cr R&D expenses [9.5% of Revenues] Rs. 1,001 Cr EBITDA [Down: 7% QoQ; Up: 14% YoY] Rs. 714 Cr Profit before Tax [16.1% of Revenues] | Rs. 17,460 Cr Revenue [Up: 13% YoY] 53.8% Gross Margin [FY19: 54.2%] Rs. 5,013 Cr SGNA expenses [Up: 3% YoY] Rs. 1,541 Cr R&D expenses [8.8% of Revenues] Rs. 4,643 Cr EBITDA [Up: 36% YoY] Rs. 1,803 Cr * Profit before Tax [10.3% of Revenues] |
* Excluding intangibles impairment of Rs. 1,677 Cr; Adjusted
Profit before tax is Rs. 3,480 Cr (55% growth YoY)
Commenting on the results, Co-Chairman and MD, GV
Prasad said "FY 20 has been a very positive year for the company. Progress made during the year includes VAI status for
CTO 6, healthy product pipeline build up, productivity improvement, and strong financial performance across our businesses".
Dr. Reddy's Laboratories Limited
Consolidated Income Statement
| Q4 FY20 | Q4 FY19 | YoY | Q3 FY20 | QoQ | ||||||||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | Gr % | ($) | (Rs.) | Gr% | ||||||||||||||||||||||||
| Revenues | 588 | 44,318 | 533 | 40,166 | 10 | 581 | 43,838 | 1 | ||||||||||||||||||||||||
| Cost of Revenues | 285 | 21,510 | 254 | 19,113 | 13 | 267 | 20,116 | 7 | ||||||||||||||||||||||||
| Gross Profit | 303 | 22,808 | 279 | 21,053 | 8 | 315 | 23,722 | (4 | ) | |||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||
| Selling, General & Administrative expenses | 162 | 12,177 | 163 | 12,294 | (1 | ) | 168 | 12,670 | (4 | ) | ||||||||||||||||||||||
| Research and Development expenses | 56 | 4,190 | 49 | 3,662 | 14 | 52 | 3,949 | 6 | ||||||||||||||||||||||||
| Impairment of non-current assets | 0 | 7 | 1 | 82 | (91 | ) | 175 | 13,200 | (100 | ) | ||||||||||||||||||||||
| Other operating income | (2 | ) | (168 | ) | (4 | ) | (330 | ) | (49 | ) | (3 | ) | (228 | ) | (26 | ) | ||||||||||||||||
| Results from operating activities | 88 | 6,602 | 71 | 5,345 | 24 | (78 | ) | (5,869 | ) | (212 | ) | |||||||||||||||||||||
| Net finance income | (6 | ) | (435 | ) | (5 | ) | (349 | ) | 25 | (6 | ) | (419 | ) | 4 | ||||||||||||||||||
| Share of profit of equity accounted investees | (1 | ) | (105 | ) | (2 | ) | (157 | ) | (33 | ) | (2 | ) | (176 | ) | (40 | ) | ||||||||||||||||
| Profit before income tax | 95 | 7,142 | 78 | 5,851 | 22 | (70 | ) | (5,274 | ) | (235 | ) | |||||||||||||||||||||
| Income tax | (7 | ) | (500 | ) | 20 | 1,507 | (133 | ) | 6 | 423 | (218 | ) | ||||||||||||||||||||
| Profit for the period | 101 | 7,642 | 58 | 4,344 | 76 | (76 | ) | (5,697 | ) | (234 | ) | |||||||||||||||||||||
| Diluted Earnings Per Share (EPS) | 0.61 | 46.01 | 0.35 | 26.16 | 76 | (0.46 | ) | (34.37 | ) | (234 | ) |
| As % to Revenues | Q4 FY20 | Q4 FY19 | Q3 FY20 | |||||||||
| Gross Profit | 51.5 | 52.4 | 54.1 | |||||||||
| SG&A | 27.5 | 30.6 | 28.9 | |||||||||
| R&D | 9.5 | 9.1 | 9.0 | |||||||||
| EBITDA | 22.6 | 22.0 | 24.5 | |||||||||
| PBT | 16.1 | 14.6 | (12.0 | ) | ||||||||
| PAT | 17.2 | 10.8 | (13.0 | ) |
| Q4 FY20 | Q4 FY19 | Q3 FY20 | ||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | ||||||||||||||||||
| Profit before Income Tax | 95 | 7,142 | 78 | 5,851 | (70 | ) | (5,274 | ) | ||||||||||||||||
| Interest (income) net* | (1 | ) | (100 | ) | (3 | ) | (215 | ) | (4 | ) | (274 | ) | ||||||||||||
| Depreciation | 28 | 2,080 | 28 | 2,136 | 28 | 2,130 | ||||||||||||||||||
| Amortization | 12 | 885 | 13 | 965 | 13 | 955 | ||||||||||||||||||
| Impairment | 0 | 7 | 1 | 82 | 175 | 13,200 | ||||||||||||||||||
| EBITDA | 133 | 10,013 | 117 | 8,819 | 142 | 10,737 |
* Includes income from Investments
Revenue Mix by Segment
| Q4 FY20 | Q4 FY19 | YoY | Q3 FY20 | QoQ | ||||||||||||||||
| Particulars | (Rs.) | (Rs.) | Growth % | (Rs.) | Growth % | |||||||||||||||
| Global Generics | 36,398 | 30,384 | 20 | 35,927 | 1 | |||||||||||||||
| North America | 18,072 | 14,957 | 21 | 15,999 | 13 | |||||||||||||||
| Europe | 3,446 | 1,912 | 80 | 3,093 | 11 | |||||||||||||||
| India | 6,839 | 6,505 | 5 | 7,636 | (10 | ) | ||||||||||||||
| Emerging Markets | 8,042 | 7,010 | 15 | 9,199 | (13 | ) | ||||||||||||||
| Pharmaceutical Services and Active Ingredients (PSAI) | 7,195 | 6,765 | 6 | 6,906 | 4 | |||||||||||||||
| Proprietary Products & Others | 725 | 3,017 | (76 | ) | 1,005 | (28 | ) | |||||||||||||
| Total | 44,318 | 40,166 | 10 | 43,838 | 1 |
Dr. Reddy's Laboratories Limited
Consolidated Income Statement
| FY 20 | FY 19 | Growth | ||||||||||||||||||||||||||
| Particulars | ($) | (Rs.) | % | ($) | (Rs.) | % | % | |||||||||||||||||||||
| Revenues | 2,316 | 1,74,600 | 100.0 | 2,041 | 1,53,851 | 100.0 | 13 | |||||||||||||||||||||
| Cost of Revenues | 1,069 | 80,591 | 46.2 | 934 | 70,421 | 45.8 | 14 | |||||||||||||||||||||
| Gross Profit | 1,247 | 94,009 | 53.8 | 1,107 | 83,430 | 54.2 | 13 | |||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||
| Selling, General & Administrative expenses | 665 | 50,129 | 28.7 | 646 | 48,680 | 31.6 | 3 | |||||||||||||||||||||
| Research and Development expenses | 204 | 15,410 | 8.8 | 207 | 15,607 | 10.1 | (1 | ) | ||||||||||||||||||||
| Impairment of non-current assets | 222 | 16,767 | 9.6 | 3 | 210 | 0.1 | 7884 | |||||||||||||||||||||
| Other operating income | (57 | ) | (4,290 | ) | (2.5 | ) | (26 | ) | (1,955 | ) | (1.3 | ) | 119 | |||||||||||||||
| Results from operating activities | 212 | 15,993 | 9.2 | 277 | 20,888 | 13.6 | (23 | ) | ||||||||||||||||||||
| Net finance income | (20 | ) | (1,478 | ) | (0.8 | ) | (15 | ) | (1,117 | ) | (0.7 | ) | 32 | |||||||||||||||
| Share of profit of equity accounted investees | (7 | ) | (561 | ) | (0.3 | ) | (6 | ) | (438 | ) | (0.3 | ) | 28 | |||||||||||||||
| Profit before income tax | 239 | 18,032 | 10.3 | 298 | 22,443 | 14.6 | (20 | ) | ||||||||||||||||||||
| Income tax | (19 | ) | (1,466 | ) | (0.8 | ) | 48 | 3,648 | 2.4 | (140 | ) | |||||||||||||||||
| Profit for the period | 259 | 19,498 | 11.2 | 249 | 18,795 | 12.2 | 4 | |||||||||||||||||||||
| Diluted Earnings Per Share (EPS) | 1.56 | 117.40 | 1.50 | 113.09 | 4 |
| FY 20 | FY 19 | |||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | ||||||||||||
| Profit before Income Tax | 239 | 18,032 | 298 | 22,443 | ||||||||||||
| Interest (income) net* | (11 | ) | (839 | ) | (9 | ) | (654 | ) | ||||||||
| Depreciation | 115 | 8,640 | 111 | 8,362 | ||||||||||||
| Amortization | 51 | 3,832 | 51 | 3,828 | ||||||||||||
| Impairment | 222 | 16,767 | 3 | 210 | ||||||||||||
| EBITDA | 616 | 46,431 | 453 | 34,189 | ||||||||||||
| EBITDA (% to revenues) | 26.6 | 22.2 |
* Includes income from Investments
Key Balance Sheet Items
| As on 31 st Mar, 2020 | As on 31st Dec 2019 | As on 31 st Mar 2019 | ||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | ||||||||||||||||||
| Cash and cash equivalents and other investments | 346 | 26,068 | 271 | 20,457 | 339 | 25,570 | ||||||||||||||||||
| Trade receivables (current & non-current) | 690 | 52,015 | 611 | 46,095 | 530 | 39,982 | ||||||||||||||||||
| Inventories | 465 | 35,066 | 501 | 37,746 | 445 | 33,579 | ||||||||||||||||||
| Property, plant and equipment | 694 | 52,332 | 699 | 52,709 | 717 | 54,088 | ||||||||||||||||||
| Goodwill and Other Intangible assets | 420 | 31,653 | 409 | 30,847 | 640 | 48,269 | ||||||||||||||||||
| Loans and borrowings (current & non-current) | 293 | 22,102 | 216 | 16,320 | 509 | 38,381 | ||||||||||||||||||
| Trade payables | 221 | 16,659 | 236 | 17,810 | 193 | 14,553 | ||||||||||||||||||
| Equity | 2,056 | 1,54,988 | 1,972 | 1,48,672 | 1,860 | 1,40,197 |
Revenue Mix by Segment [Year on year]
| FY 20 | FY 19 | Growth | ||||||||||||||||||||||||||
| Particulars | ($) | (Rs.) | % | ($) | (Rs.) | % | % | |||||||||||||||||||||
| Global Generics | 1,832 | 1,38,123 | 79.1 | 1,630 | 1,22,903 | 79.9 | 12 | |||||||||||||||||||||
| North America | 64,659 | 59,957 | 8 | |||||||||||||||||||||||||
| Europe | 11,707 | 7,873 | 49 | |||||||||||||||||||||||||
| India | 28,946 | 26,179 | 11 | |||||||||||||||||||||||||
| Emerging Markets | 32,811 | 28,894 | 14 | |||||||||||||||||||||||||
| Pharmaceutical Services and Active Ingredients (PSAI) | 342 | 25,747 | 14.7 | 320 | 24,140 | 15.7 | 7 | |||||||||||||||||||||
| Proprietary Products & Others | 142 | 10,730 | 6.1 | 90 | 6,808 | 4.4 | 58 | |||||||||||||||||||||
| Total | 2,316 | 1,74,600 | 100.0 | 2,041 | 1,53,851 | 100.0 | 13 |
Response to COVID-19
We are taking all the protective measures
in terms of ensuring the health and safety of our employees by following the physical distance norms, using protective gears, and
other appropriate measures. Various initiatives have been undertaken to ensure that our manufacturing related operations continue
unabated enabling us to serve our patients. A few products related to COVID-19 are under development. We are using digital channels
for enabling work from home and reaching out to doctors, customers and vendors. We are also playing our part of contributing to
the society by extending support through various CSR initiatives such as supporting the health care professionals and others with
the PPE kits, masks, sanitizers, gloves besides providing food assistance to the marginal sections & migrant families.
Revenue Analysis [Q4 and full
Global Generics (GG)
North America Generics (NAG)
Emerging Markets (EM)
Pharmaceutical Services and Active Ingredients
Proprietary Products (PP)
Income Statement Highlights:
Earnings Call Details (05:15
pm IST, 07:45 am EDT, May 20, 2020)
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: | 74886 |
Transcript of the event will be available at www.drreddys.com.
The play back will be available after the earnings call, till May 27th, 2020.
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, (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, 2019. The company assumes no obligation to update any information
The company assumes no obligation to update any information