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) |
Reddy's Q2 & H1 FY21 Financial Results
Hyderabad, India, October 28, 2020:
Dr. Reddy's Laboratories Ltd. (BSE: 500124 | NSE: DRREDDY | NYSE: RDY) today announced its consolidated financial results
for the quarter and the half year ended September 30, 2020. The information mentioned in this release is on the basis of consolidated
financial statements under International Financial Reporting Standards (IFRS).
| Q2 Performance Summary | H1 Performance Summary | |
| Rs. 4,897 Cr Revenue [Up: 11% QoQ; 2% YoY] 53.9% Gross Margin [Q1 FY21: 56.0%; Q2 FY20: 57.5%] Rs.1,311 Cr SGNA expenses [Up: 3% QoQ; Down: 1% YoY] Rs. 436 Cr R&D expenses [8.9% of Revenues] Rs. 1,267 Cr EBITDA [Up: 9% QoQ; Down: 12% YoY] Rs. 862 Cr Profit before Tax [Down: 2% QoQ; Up: 12% YoY] Rs. 762 Cr Profit after Tax [Up: 32% QoQ; Down: 30% YoY] | Rs. 9,314 Cr Revenue [Up: 8% YoY] 54.9% Gross Margin [H1 FY20: 54.9%] Rs. 2,589 Cr SGNA expenses [Up: 2% YoY] Rs. 834 Cr R&D expenses [9.0% of Revenues] Rs. 2,430 Cr EBITDA [Down: 5% YoY] Rs. 1,741 Cr Profit before Tax [Up: 8% YoY] Rs. 1,342 Cr Profit after Tax [Down: 24% YoY] |
*Q2 FY21 YoY sales growth of 20% adjusted for proprietary
products out-licensing income in previous year
Commenting on the results, Co-chairman & MD, G V Prasad
said "We are pleased to report continued growth across all the markets and improved productivity which is reflected in the
healthy EBITDA margin and RoCE. Our research teams are working on several potential remedies for COVID in addition to the already
Reddy's Laboratories Limited and Subsidiaries
Consolidated Income Statement
| Q2 FY21 | Q2 FY20 | YoY | Q1 FY21 | QoQ | ||||||||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | Gr % | ($) | (Rs.) | Gr% | ||||||||||||||||||||||||
| Revenues | 666 | 48,967 | 653 | 48,009 | 2 | 601 | 44,175 | 11 | ||||||||||||||||||||||||
| Cost of Revenues | 307 | 22,558 | 277 | 20,389 | 11 | 264 | 19,420 | 16 | ||||||||||||||||||||||||
| Gross Profit | 359 | 26,409 | 376 | 27,620 | (4 | ) | 337 | 24,755 | 7 | |||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||
| Selling, General & Administrative expenses | 178 | 13,107 | 180 | 13,217 | (1 | ) | 174 | 12,786 | 3 | |||||||||||||||||||||||
| Research and Development expenses | 59 | 4,359 | 50 | 3,662 | 19 | 54 | 3,980 | 10 | ||||||||||||||||||||||||
| Impairment of non-current assets | 11 | 781 | 48 | 3,560 | (78 | ) | ||||||||||||||||||||||||||
| Other operating income | (2 | ) | (149 | ) | (2 | ) | (135 | ) | 10 | (2 | ) | (118 | ) | 26 | ||||||||||||||||||
| Results from operating activities | 113 | 8,311 | 99 | 7,316 | 14 | 110 | 8,107 | 3 | ||||||||||||||||||||||||
| Net finance income | (3 | ) | (237 | ) | (3 | ) | (231 | ) | 3 | (8 | ) | (605 | ) | (61 | ) | |||||||||||||||||
| Share of profit of equity accounted investees | (1 | ) | (73 | ) | (2 | ) | (117 | ) | (38 | ) | (1 | ) | (77 | ) | (5 | ) | ||||||||||||||||
| Profit before income tax | 117 | 8,621 | 104 | 7,664 | 12 | 120 | 8,789 | (2 | ) | |||||||||||||||||||||||
| Income tax | 13 | 998 | (44 | ) | (3,261 | ) | (131 | ) | 41 | 2,996 | (67 | ) | ||||||||||||||||||||
| Profit for the period | 104 | 7,623 | 149 | 10,925 | (30 | ) | 79 | 5,793 | 32 | |||||||||||||||||||||||
| Diluted Earnings Per Share (EPS) | 0.62 | 45.83 | 0.90 | 65.82 | (30 | ) | 0.47 | 34.86 | 31 |
| As a % to revenues | Q2 FY21 | Q2 FY20 | Q1 FY21 | |||||||||
| Gross Profit | 53.9 | 57.5 | 56.0 | |||||||||
| SG&A | 26.8 | 27.5 | 28.9 | |||||||||
| R&D | 8.9 | 7.6 | 9.0 | |||||||||
| EBITDA | 25.9 | 29.9 | 26.3 | |||||||||
| PBT | 17.6 | 16.0 | 19.9 | |||||||||
| PAT | 15.6 | 22.8 | 13.1 |
| Q2 FY21 | Q2 FY20 | Q1 FY21 | ||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | ||||||||||||||||||
| Profit before Income Tax | 117 | 8,621 | 104 | 7,664 | 120 | 8,789 | ||||||||||||||||||
| Interest income (net)* | (0 | ) | (1 | ) | (3 | ) | (226 | ) | (4 | ) | (306 | ) | ||||||||||||
| Depreciation | 30 | 2,188 | 31 | 2,306 | 29 | 2,120 | ||||||||||||||||||
| Amortization | 15 | 1,084 | 14 | 1,033 | 14 | 1,020 | ||||||||||||||||||
| Impairment | 11 | 781 | 48 | 3,560 | ||||||||||||||||||||
| EBITDA | 172 | 12,673 | 195 | 14,337 | 158 | 11,622 |
* Includes income from Investments
Key Balance Sheet Items
| As on 30th Sep 2020 | As on 30th Jun 2020 | As on 30th Sep 2019 | ||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | ||||||||||||||||||
| Cash and cash equivalents and other investments | 355 | 26,074 | 384 | 28,227 | 414 | 30,446 | ||||||||||||||||||
| Trade receivables (current & non-current) | 684 | 50,335 | 657 | 48,316 | 573 | 42,153 | ||||||||||||||||||
| Inventories | 559 | 41,134 | 532 | 39,148 | 476 | 35,033 | ||||||||||||||||||
| Property, plant and equipment | 748 | 55,026 | 737 | 54,183 | 721 | 53,008 | ||||||||||||||||||
| Goodwill and Other Intangible assets | 619 | 45,553 | 625 | 45,991 | 603 | 44,340 | ||||||||||||||||||
| Loans and borrowings (current & non-current) | 373 | 27,429 | 429 | 31,582 | 429 | 31,545 | ||||||||||||||||||
| Trade payables | 310 | 22,833 | 259 | 19,038 | 210 | 15,434 | ||||||||||||||||||
| Equity | 2,248 | 1,65,337 | 2,199 | 1,61,748 | 2,092 | 1,53,816 |
Revenue Mix by Segment
| Q2 FY21 | Q2 FY20 | YoY | Q1 FY21 | QoQ | ||||||||||||||||
| Particulars | (Rs.) | (Rs.) | Growth % | (Rs.) | Growth % | |||||||||||||||
| Global Generics | 39,841 | 32,816 | 21 | % | 35,075 | 14 | % | |||||||||||||
| North America | 18,328 | 14,265 | 28 | % | 17,282 | 6 | % | |||||||||||||
| Europe | 3,754 | 2,764 | 36 | % | 3,551 | 6 | % | |||||||||||||
| India | 9,123 | 7,511 | 21 | % | 6,260 | 46 | % | |||||||||||||
| EM | 8,636 | 8,276 | 4 | % | 7,982 | 8 | % | |||||||||||||
| Pharmaceutical Services and Active Ingredients (PSAI) | 8,505 | 7,107 | 20 | % | 8,553 | (1 | %) | |||||||||||||
| Proprietary Products & Others | 621 | 8,086 | (92 | %) | 547 | 14 | % | |||||||||||||
| Total | 48,967 | 48,009 | 2 | % | 44,175 | 11 | % |
On 22nd October 2020, we experienced an information security
incident and consequently isolated the impacted IT services. This incident involved a ransom-ware attack. We promptly engaged leading
outside cybersecurity experts, launched a comprehensive containment and remediation effort and investigation to address the incident.
As of date, our investigation has not ascertained if any data
breaches in the incident pertain to personally identifiable information stored in the Company's systems.
Recovery and restoration of all applications and data is underway.
All critical operations are being enabled in a controlled manner.
We continue our fight against the current
pandemic by ensuring health and safety of our employees and business partners by adopting adequate precautionary measures. We continued
our operations across plants enabling us to serve our patients across markets.
During the quarter we saw gradual recovery
in the market demand across India, Russia and other markets after a low demand in Q1 FY 21, although the demand is yet to fully
recover to pre-covid levels.
We launched COVID-19 treatment drugs Avigan
(Favipiravir) and Remdesivir. We further strengthened our development pipeline for COVID-19 treatment drugs including the vaccine
candidate Sputnik V.
Global Generics (GG)
Revenues from GG segment at Rs.
Revenues from North America at Rs.
Revenues from Europe at Rs. 3.8
Revenues from India at Rs. 9.1 billion:
Revenues from Emerging Markets at
Rs. 8.6 billion. Year-on-year growth of 4%. Sequential growth of 8%:
Pharmaceutical Services and Active Ingredients (PSAI)
Revenues from PSAI at Rs. 8.5 billion:
Proprietary Products (PP) & Others
Revenues from PP & Others at Rs. 622 million:
Income Statement Highlights:
Earnings Call Details (05:30
pm IST, 08:00 am EDT, Oct 28, 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.
Conference Joining Information
Option 1: Express Join with DiamondPass
Pre-register with the below link and join without waiting for
| 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 November 4th, 2020. For play back dial in phone No: +91 22 7194 5757 | +91 22 6663 5757, and Playback
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
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 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