Full Press Release Details
| CONTACT | ||
| DR. REDDY'S LABORATORIES LTD. | Investor relationS | Media relationS |
| 8-2-337, Road No. 3, Banjara Hills, | AMIT AGARWAL | APARNA TEKURI |
| Hyderabad - 500034. Telangana, India. | amita@drreddys.com | aparnatekuri@drreddys.com |
| (P h : +91-40-4900 2135) | (P h : +91-40-4900 2446) |
Q1 FY21 Financial Results
Hyderabad, India, July 29, 2020: Dr.
Reddy's Laboratories Ltd. (BSE: 500124 | NSE: DRREDDY | NYSE: RDY) today announced its consolidated financial results for
the quarter ended June 30, 2020. The information mentioned in this release is on the basis of consolidated financial statements
under International Financial Reporting Standards (IFRS).
| Revenues | Rs. 4,418 Cr [YoY: Up 15%; QoQ: Down 0.3%] |
| Gross Margin | 56.0% [Q1 FY20: 51.7%; Q4 FY20: 51.5%] |
| SG&A Expenses | Rs. 1,279 Cr [YoY: Up 6%; QoQ: Up 5%] |
| R&D Expenses | Rs. 398 Cr [9.0% of Revenues] |
| EBITDA* | Rs. 1,162 Cr [YoY: Up 2%; QoQ: Up 16%] |
| Profit before Tax | Rs. 879 Cr [19.9% of Revenues] |
| Profit after Tax | Rs. 579 Cr [13.1% of Revenues] |
* Q1 FY20 includes a settlement income of Rs. 346 Cr, adjusted
for which the EBITDA YoY growth is 47%
Commenting on the results, Co-chairman &
MD, G V Prasad said "the current quarter's financial performance has been strong across all parameters. I am glad that
we have been able to serve our patients well and ensured continuity of business operations despite the challenging times. We have
started integration of the acquired business from Wockhardt and executed two important licencing arrangements for treatment options
for COVID-19. Currently, we are working towards bringing both these drugs to multiple markets".
Dr. Reddy's Laboratories Limited
Consolidated Income Statement
| Q1 FY21 | Q1 FY20 | YoY | Q4 FY20 | QoQ | ||||||||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | Gr % | ($) | (Rs.) | Gr% | ||||||||||||||||||||||||
| Revenues | 585 | 44,175 | 509 | 38,435 | 15 | 587 | 44,318 | (0 | ) | |||||||||||||||||||||||
| Cost of Revenues | 257 | 19,420 | 246 | 18,576 | 5 | 285 | 21,510 | (10 | ) | |||||||||||||||||||||||
| Gross Profit | 328 | 24,755 | 263 | 19,859 | 25 | 302 | 22,808 | 9 | ||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||
| Selling, General & Administrative expenses | 169 | 12,786 | 160 | 12,065 | 6 | 161 | 12,177 | 5 | ||||||||||||||||||||||||
| Research and Development expenses | 53 | 3,980 | 48 | 3,609 | 10 | 55 | 4,190 | (5 | ) | |||||||||||||||||||||||
| Impairment of non-current assets | 0 | 7 | (100 | ) | ||||||||||||||||||||||||||||
| Other operating income | (2 | ) | (118 | ) | (50 | ) | (3,759 | ) | (97 | ) | (2 | ) | (168 | ) | (30 | ) | ||||||||||||||||
| Results from operating activities | 107 | 8,107 | 105 | 7,944 | 2 | 87 | 6,602 | 23 | ||||||||||||||||||||||||
| Net finance income | (8 | ) | (605 | ) | (5 | ) | (393 | ) | 54 | (6 | ) | (435 | ) | 39 | ||||||||||||||||||
| Share of profit of equity accounted investees | (1 | ) | (77 | ) | (2 | ) | (163 | ) | (53 | ) | (1 | ) | (105 | ) | (27 | ) | ||||||||||||||||
| Profit before Income Tax | 116 | 8,789 | 113 | 8,500 | 3 | 95 | 7,142 | 23 | ||||||||||||||||||||||||
| Income tax | 40 | 2,996 | 25 | 1,872 | 60 | (7 | ) | (500 | ) | (699 | ) | |||||||||||||||||||||
| Profit for the period | 77 | 5,793 | 88 | 6,628 | (13 | ) | 101 | 7,642 | (24 | ) | ||||||||||||||||||||||
| Diluted Earnings Per Share (EPS) | 0.46 | 34.86 | 0.53 | 39.91 | (13 | ) | 0.61 | 46.01 | (24 | ) |
| As a % to Revenues | Q1 FY21 | Q1 FY20 | Q4 FY20 | |||||||||
| Gross Profit | 56.0 | 51.7 | 51.5 | |||||||||
| SG&A | 28.9 | 31.4 | 27.5 | |||||||||
| R&D | 9.0 | 9.4 | 9.5 | |||||||||
| EBITDA | 26.3 | 29.5 | 22.6 | |||||||||
| PBT | 19.9 | 22.1 | 16.1 | |||||||||
| PAT | 13.1 | 17.2 | 17.2 |
| Q1 FY21 | Q1 FY20 | Q4 FY20 | ||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | ||||||||||||||||||
| Profit before Income Tax | 116 | 8,789 | 113 | 8,500 | 95 | 7,142 | ||||||||||||||||||
| Interest income (net)* | (4 | ) | (306 | ) | (3 | ) | (239 | ) | (1 | ) | (100 | ) | ||||||||||||
| Depreciation | 28 | 2,120 | 28 | 2,124 | 28 | 2,080 | ||||||||||||||||||
| Amortization | 14 | 1,020 | 13 | 958 | 12 | 885 | ||||||||||||||||||
| Impairment | 0 | 0 | 0 | 0 | 0 | 7 | ||||||||||||||||||
| EBITDA | 154 | 11,622 | 150 | 11,343 | 133 | 10,013 |
* Includes income from Investments
Key Balance Sheet Items
| As on 30th Jun 2020 | As on 31st Mar 2020 | As on 30th Jun 2019 | ||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | ||||||||||||||||||
| Cash and cash equivalents and other investments | 374 | 28,227 | 345 | 26,068 | 377 | 28,439 | ||||||||||||||||||
| Trade receivables (current & non-current) | 640 | 48,316 | 689 | 52,015 | 503 | 37,961 | ||||||||||||||||||
| Inventories | 518 | 39,148 | 464 | 35,066 | 465 | 35,137 | ||||||||||||||||||
| Property, plant and equipment* | 717 | 54,183 | 693 | 52,332 | 716 | 54,083 | ||||||||||||||||||
| Goodwill and Other Intangible assets* | 609 | 45,991 | 419 | 31,653 | 633 | 47,821 | ||||||||||||||||||
| Loans and borrowings (current & non-current) | 418 | 31,582 | 293 | 22,102 | 455 | 34,389 | ||||||||||||||||||
| Trade payables | 252 | 19,038 | 221 | 16,659 | 197 | 14,842 | ||||||||||||||||||
| Equity | 2,142 | 1,61,748 | 2,052 | 1,54,988 | 1,936 | 1,46,209 |
*On the basis of provisional allocation of purchase price for
the business acquired from Wockhardt
Revenue Mix by Segment
| Q1 FY21 | Q1 FY20 | YoY | Q4 FY20 | QoQ | ||||||||||||||||
| Particulars | (Rs.) | (Rs.) | Growth % | (Rs.) | Growth % | |||||||||||||||
| Global Generics | 35,075 | 32,982 | 6 | % | 36,398 | (4 | %) | |||||||||||||
| North America | 17,282 | 16,323 | 6 | % | 18,072 | (4 | %) | |||||||||||||
| Europe | 3,551 | 2,404 | 48 | % | 3,446 | 3 | % | |||||||||||||
| India | 6,260 | 6,960 | (10 | %) | 6,839 | (8 | %) | |||||||||||||
| Emerging Markets | 7,982 | 7,296 | 9 | % | 8,042 | (1 | %) | |||||||||||||
| Pharmaceutical Services and Active Ingredients (PSAI) | 8,553 | 4,539 | 88 | % | 7,195 | 19 | % | |||||||||||||
| Proprietary Products & Others | 547 | 914 | (40 | %) | 725 | (25 | %) | |||||||||||||
| Total | 44,175 | 38,435 | 15 | % | 44,318 | 0 | % |
In the current challenging times due to the
COVID-19 pandemic, we are undertaking reasonable precautions to ensure the health and safety of our employees, including adhering
to the social distancing norms, sanitization of our premises, usage of masks, gloves and other protective wears.
Our operations have continued without much
impact. We continued our engagement with doctors through digital channels, ensured regular supplies of our products to meet with
the market demand and continued our R&D activities including few projects pertaining to COVID-19.
While the sales volume were impacted in some
of our markets due to lower prescriptions generated and fall in patient footfalls in pharmacies / clinics due to Covid-19, the
pricing environment was relatively stable, new products launches continued and depreciation of rupee against the US dollar and
Euro supported the business.
Global Generics (GG)
Revenues from GG segment at Rs. 35.1
from North America at Rs. 17.3 billion:
Revenues from Emerging Markets at
Rs. 8.0 billion. Year-on-year growth of 9%. Sequential decline of 1%:
Revenues from India at Rs. 6.3 billion:
Revenues from Europe at Rs. 3.6
Pharmaceutical Services and Active Ingredients
Revenues from PSAI at Rs. 8.6 billion:
Proprietary Products (PP)
Revenues from PP at Rs. 56 million:
Income Statement Highlights:
Earnings Call Details (05:30 pm
IST, 08:00 am EDT, July 29, 2020)
The management of the Company will host
an earnings call to discuss the Company's financial performance and answer any questions from the participants.
Pre-register with the below link and join
without waiting for the operator.
| Option 2: Join through below Dial-In Numbers | |
| Universal Access Number: | +91 22 6280 1219 +91 22 7115 8120 |
| Local Access Number: Available all over India | +91 70456 71221 |
| International Toll Free Number: | USA: 1 866 746 2133 UK: 0 808 101 1573 Singapore: 800 101 2045 Hong Kong: 800 964 448 |
No password/pin number is necessary to
dial in to any of the above numbers. The operator will provide instructions on asking questions before and during the call.
Play Back: The play back will be
available after the earnings call, till August 6th, 2020. For play back dial in phone No: +91 22 7194 5757 | +91 22
6663 5757, and Playback Code is 58336.
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.
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 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.