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 Q3 & 9M FY21 Financial Results
Hyderabad, India, January 29, 2021:
Dr. Reddy's Laboratories Ltd. (BSE: 500124 | NSE: DRREDDY | NYSE: RDY | NSEIFSC: DRREDDY) today announced its consolidated
financial results for the quarter and the nine months ended December 31, 2020. The information mentioned in this release is on
the basis of consolidated financial statements under International Financial Reporting Standards (IFRS).
| Q3 Performance Summary | 9M Performance Summary | |
| Rs. 4,930 Cr Revenue [Up: 12% YoY; 1% QoQ] 53.8% Gross Margin [Q3 FY20: 54.1%; Q2 FY21: 53.9%] Rs.1,439 Cr SGNA expenses [Up: 14% YoY; 10% QoQ] Rs. 411 Cr R&D expenses [8.3% of Revenues] Rs. 1,185 Cr EBITDA [24.0% of Revenues] Rs. 284 Cr* Profit before Tax [5.8% of Revenues] Rs. 20 Cr** Profit after Tax [0.4% of Revenues] | Rs. 14,244 Cr Revenue [Up: 9% YoY] 54.6% Gross Margin [9M FY20: 54.7%] Rs. 4,028 Cr SGNA expenses [Up: 6% YoY] Rs. 1,245 Cr R&D expenses [8.7% of Revenues] Rs. 3,615 Cr EBITDA [25.4% of Revenues] Rs. 2,025 Cr Profit before Tax [14.2% of Revenues] Rs. 1,361 Cr Profit after Tax [9.6% of Revenues] |
*Excluding the impairment charge in Q3 FY21, the Profit before
**Q3 FY21 Profit after Tax was impacted primarily due to
non-recognition of deferred tax asset on impairment
Commenting on the results, Co-chairman
& MD, G V Prasad said "We continued with our growth momentum while maintaining EBITDA margins. The profits were impacted
due to trigger based impairment charge taken on a few acquired products including gNuvaring. We are progressing well on the phase
3 clinical trials for Sputnik V vaccine in India. We continue to focus on enhancing our product offerings to our patients to serve
Dr. Reddy's Laboratories Limited
Consolidated Income Statement
| Q3 FY21 | Q3 FY20 | YoY | Q2 FY21 | QoQ | ||||||||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | Gr % | ($) | (Rs.) | Gr % | ||||||||||||||||||||||||
| Revenues | 675 | 49,296 | 600 | 43,838 | 12 | 671 | 48,967 | 1 | ||||||||||||||||||||||||
| Cost of Revenues | 312 | 22,758 | 276 | 20,116 | 13 | 309 | 22,558 | 1 | ||||||||||||||||||||||||
| Gross Profit | 363 | 26,538 | 325 | 23,722 | 12 | 362 | 26,409 | 0 | ||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||
| Selling, General & Administrative expenses | 197 | 14,387 | 174 | 12,670 | 14 | 180 | 13,107 | 10 | ||||||||||||||||||||||||
| Research and Development expenses | 56 | 4,108 | 54 | 3,949 | 4 | 60 | 4,359 | (6 | ) | |||||||||||||||||||||||
| Impairment of non-current assets | 82 | 5,972 | 181 | 13,200 | (55 | ) | 11 | 781 | 665 | |||||||||||||||||||||||
| Other operating income | (2 | ) | (128 | ) | (3 | ) | (228 | ) | (44 | ) | (2 | ) | (149 | ) | (14 | ) | ||||||||||||||||
| Results from operating activities | 30 | 2,199 | (80 | ) | (5,869 | ) | - | 114 | 8,311 | (74 | ) | |||||||||||||||||||||
| Net finance income | (7 | ) | (493 | ) | (6 | ) | (419 | ) | 18 | (3 | ) | (237 | ) | 108 | ||||||||||||||||||
| Share of profit of equity accounted investees | (2 | ) | (151 | ) | (2 | ) | (176 | ) | (14 | ) | (1 | ) | (73 | ) | 107 | |||||||||||||||||
| Profit / (loss) before Income Tax | 39 | 2,843 | (72 | ) | (5,274 | ) | - | 118 | 8,621 | (67 | ) | |||||||||||||||||||||
| Income Tax | 36 | 2,645 | 6 | 423 | 525 | 14 | 998 | 165 | ||||||||||||||||||||||||
| Profit / (loss) for the period | 3 | 198 | (78 | ) | (5,697 | ) | - | 104 | 7,623 | (97 | ) | |||||||||||||||||||||
| Diluted Earnings Per Share (EPS) | 0.02 | 1.19 | (0.47 | ) | (34.37 | ) | - | 0.63 | 45.83 | (97 | ) |
| As % to revenues | Q3 FY21 | Q3 FY20 | Q2 FY21 | |||||||||
| Gross Profit | 53.8 | 54.1 | 53.9 | |||||||||
| SG&A | 29.2 | 28.9 | 26.8 | |||||||||
| R&D | 8.3 | 9.0 | 8.9 | |||||||||
| EBITDA | 24.0 | 24.5 | 25.9 | |||||||||
| PBT | 5.8 | (12.0 | ) | 17.6 | ||||||||
| PAT | 0.4 | (13.0 | ) | 15.6 |
| Q3 FY21 | Q3 FY20 | Q2 FY21 | ||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | ||||||||||||||||||
| Profit before Income Tax | 39 | 2,843 | (72 | ) | (5,274 | ) | 118 | 8,621 | ||||||||||||||||
| Interest income (net)* | (2 | ) | (180 | ) | (4 | ) | (274 | ) | (0 | ) | (1 | ) | ||||||||||||
| Depreciation | 29 | 2,131 | 29 | 2,130 | 30 | 2,188 | ||||||||||||||||||
| Amortization | 15 | 1,086 | 13 | 955 | 15 | 1,084 | ||||||||||||||||||
| Impairment | 82 | 5,972 | 181 | 13,200 | 11 | 781 | ||||||||||||||||||
| EBITDA | 162 | 11,851 | 147 | 10,737 | 174 | 12,673 |
* Includes income from Investments
Key Balance Sheet Items
| As on 31st Dec 2020 | As on 30th Sep 2020 | As on 31st Dec 2019 | ||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | ||||||||||||||||||
| Cash and cash equivalents and current investments | 291 | 21,282 | 357 | 26,074 | 280 | 20,457 | ||||||||||||||||||
| Trade receivables (current & non-current) | 732 | 53,408 | 689 | 50,335 | 631 | 46,095 | ||||||||||||||||||
| Inventories | 607 | 44,309 | 563 | 41,134 | 517 | 37,746 | ||||||||||||||||||
| Property, plant and equipment | 771 | 56,263 | 754 | 55,026 | 722 | 52,709 | ||||||||||||||||||
| Goodwill and Other Intangible assets | 562 | 41,062 | 624 | 45,553 | 423 | 30,847 | ||||||||||||||||||
| Loans and borrowings (current & non-current) | 280 | 20,443 | 376 | 27,429 | 224 | 16,320 | ||||||||||||||||||
| Trade payables | 316 | 23,072 | 313 | 22,833 | 244 | 17,810 | ||||||||||||||||||
| Equity | 2,320 | 1,69,395 | 2,265 | 1,65,337 | 2,036 | 1,48,672 |
Revenue Mix by Segment
| Q3 FY21 | Q3 FY20 | YoY | Q2 FY21 | QoQ | ||||||||||||||||
| Segment | (Rs.) | (Rs.) | Gr % | (Rs.) | Gr % | |||||||||||||||
| Global Generics | 40,751 | 35,927 | 13 | 39,841 | 2 | |||||||||||||||
| North America | 17,394 | 15,999 | 9 | 18,328 | (5 | ) | ||||||||||||||
| Europe | 4,143 | 3,093 | 34 | 3,754 | 10 | |||||||||||||||
| India | 9,591 | 7,636 | 26 | 9,123 | 5 | |||||||||||||||
| Emerging Markets | 9,623 | 9,199 | 5 | 8,636 | 11 | |||||||||||||||
| Pharmaceutical Services and Active Ingredients (PSAI) | 7,009 | 6,906 | 1 | 8,505 | (18 | ) | ||||||||||||||
| Proprietary Products & Others | 1,536 | 1,005 | 53 | 621 | 147 | |||||||||||||||
| Total | 49,296 | 43,838 | 12 | 48,967 | 1 |
segment at Rs. 40.8 billion:
America at Rs. 17.4 billion:
Revenues from Europe at Rs. 4.1
Revenues from India at Rs. 9.6 billion:
Revenues from Emerging Markets at
Rs. 9.6 billion. Year-on-year growth of 5%. Sequential growth of 11%:
Services and Active Ingredients (PSAI)
Proprietary Products (PP) & Others
Revenues from PP & Others at
Income Statement Highlights:
Earnings Call Details (05:30
pm IST, 07:00 am EST, Jan 29, 2021)
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
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| Option 2: Join through below Dial-In Numbers | |
| Universal Access Number: | +91 22 6280 1219 +91 22 7115 8120 |
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| 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
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Play Back: The play back will be available after the
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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