Full Press Release Details
| CONTACT | |||
| DR. REDDY'S LABORATORIES LTD. | Investor relationS | Media relationS | |
| 8-2-337, Road No. 3, Banjara Hills, | AMIT AGARWAL | USHA iyer | |
| Hyderabad - 500034. Telangana, India. | amita@drreddys.com | ushaiyer@drreddys.com |
Reddy's Q1 FY22 Financial Results
Hyderabad, India, July 27, 2021: Dr.
Reddy's Laboratories Ltd. (BSE: 500124 | NSE: DRREDDY | NYSE: RDY | NSEIFSC: DRREDDY) today announced its consolidated financial
results for the quarter ended June 30, 2021. The information mentioned in this release is on the basis of consolidated financial
statements under International Financial Reporting Standards (IFRS).
| Revenues | Rs. 4,919 Cr |
| [Up: 11% YoY; Up: 4% QoQ] | |
| Gross Margin | 52.2% |
| [Q1 FY21: 56.0%; Q4 FY21: 53.7%] | |
| SG&A Expenses | Rs. 1,505 Cr |
| [Up: 18% YoY; Up: 5% QoQ] | |
| R&D Expenses | Rs. 453 Cr |
| [9.2% of Revenues] | |
| EBITDA | Rs. 1,019 Cr |
| [20.7% of Revenues] | |
| Profit before Tax* | Rs. 743 Cr |
| [Down: 16% YoY; Up: 21% QoQ] | |
| Profit after Tax* | Rs. 571 Cr |
| [Down: 1% YoY; Up: 58% QoQ] |
* Q4 FY21 financials have been adjusted
with an additional charge of Rs. 191 Cr ($ 26.25 mn) arising out of the arbitration award in favor of Hatchtech towards the Xeglyze
product as an adjusting subsequent event for filing IFRS financials with US SEC in Form 20F on June 30, 2021.
Commenting on the results, Co-Chairman
& MD, G V Prasad said "The financial performance of the quarter has been driven by healthy sales growth. I am confident
about improving our margins in the upcoming quarters which will be led by the scale up of recent launches, new product launches
and productivity. While we continue to sharpen execution in our core business, we are also conducting pilots in areas such as Nutrition,
Direct-to-Customer, and Digital Health & Wellness, which can be future growth drivers".
Dr. Reddy's Laboratories Limited
Consolidated Income Statement
| Q1 FY22 | Q1 FY21 | YoY | Q4 FY21 | QoQ | ||||||||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | Gr % | ($) | (Rs.) | Gr% | ||||||||||||||||||||||||
| Revenues | 662 | 49,194 | 594 | 44,175 | 11 | 636 | 47,284 | 4 | ||||||||||||||||||||||||
| Cost of Revenues | 316 | 23,495 | 261 | 19,420 | 21 | 295 | 21,909 | 7 | ||||||||||||||||||||||||
| Gross Profit | 346 | 25,699 | 333 | 24,755 | 4 | 341 | 25,375 | 1 | ||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||
| Selling, General & Administrative expenses | 202 | 15,045 | 172 | 12,786 | 18 | 193 | 14,370 | 5 | ||||||||||||||||||||||||
| Research and Development expenses | 61 | 4,534 | 54 | 3,980 | 14 | 55 | 4,094 | 11 | ||||||||||||||||||||||||
| Impairment of non-current assets | - | - | - | - | - | 25 | 1,835 | (100 | ) | |||||||||||||||||||||||
| Other operating income | (7 | ) | (487 | ) | (2 | ) | (118 | ) | 313 | (8 | ) | (587 | ) | (17 | ) | |||||||||||||||||
| Results from operating activities | 89 | 6,607 | 109 | 8,107 | (19 | ) | 76 | 5,663 | 17 | |||||||||||||||||||||||
| Net finance income | (9 | ) | (652 | ) | (8 | ) | (605 | ) | 8 | (4 | ) | (318 | ) | 105 | ||||||||||||||||||
| Share of profit of equity accounted investees | (2 | ) | (166 | ) | (1 | ) | (77 | ) | 116 | (2 | ) | (179 | ) | (7 | ) | |||||||||||||||||
| Profit before income tax | 100 | 7,425 | 118 | 8,789 | (16 | ) | 83 | 6,160 | 21 | |||||||||||||||||||||||
| Income tax (benefit) / expense | 23 | 1,717 | 40 | 2996 | (43 | ) | 34 | 2,536 | (32 | ) | ||||||||||||||||||||||
| Profit for the period | 77 | 5,708 | 78 | 5,793 | (1 | ) | 49 | 3,624 | 58 | |||||||||||||||||||||||
| Diluted Earnings Per Share (EPS) | 0.46 | 34.34 | 0.47 | 34.86 | (1 | ) | 0.29 | 21.80 | 58 |
| As % to revenues | Q1 FY22 | Q1 FY21 | Q4 FY21 | |||||||||
| Gross Profit | 52.2 | 56.0 | 53.7 | |||||||||
| SG&A | 30.6 | 28.9 | 30.4 | |||||||||
| R&D | 9.2 | 9.0 | 8.7 | |||||||||
| EBITDA | 20.7 | 26.3 | 23.8 | |||||||||
| PBT | 15.1 | 19.9 | 13.0 | |||||||||
| PAT | 11.6 | 13.1 | 7.7 |
| Q1 FY22 | Q1 FY21 | Q4 FY21 | ||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | ||||||||||||||||||
| Profit before Income Tax | 100 | 7,425 | 118 | 8,789 | 83 | 6,160 | ||||||||||||||||||
| Interest (income) / expense (net)* | (2 | ) | (142 | ) | (4 | ) | (306 | ) | 1 | 75 | ||||||||||||||
| Depreciation | 27 | 1,973 | 29 | 2,120 | 28 | 2,089 | ||||||||||||||||||
| Amortization | 13 | 932 | 14 | 1,020 | 15 | 1,080 | ||||||||||||||||||
| Impairment | - | - | - | - | 25 | 1,835 | ||||||||||||||||||
| EBITDA | 137 | 10,188 | 156 | 11,622 | 151 | 11,239 |
Key Balance Sheet Items
| As on 30 th Jun 2021 | As on 31 st Mar 2021 | As on 30 th Jun 2020 | ||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | ||||||||||||||||||
| Cash and cash equivalents and other investments | 462 | 34,356 | 532 | 39,531 | 380 | 28,227 | ||||||||||||||||||
| Trade receivables (current & non-current) | 823 | 61,148 | 669 | 49,759 | 650 | 48,316 | ||||||||||||||||||
| Inventories | 683 | 50,771 | 611 | 45,412 | 527 | 39,148 | ||||||||||||||||||
| Property, plant and equipment | 789 | 58,636 | 768 | 57,111 | 729 | 54,183 | ||||||||||||||||||
| Goodwill and Other Intangible assets | 535 | 39,746 | 541 | 40,216 | 619 | 45,991 | ||||||||||||||||||
| Loans and borrowings (current & non-current) | 449 | 33,373 | 408 | 30,308 | 425 | 31,582 | ||||||||||||||||||
| Trade payables | 385 | 28,607 | 319 | 23,744 | 256 | 19,038 | ||||||||||||||||||
| Equity | 2,396 | 1,78,114 | 2,328 | 1,73,062 | 2,176 | 1,61,748 |
Revenue Mix by Segment
| Q1 FY22 | Q1 FY21 | YoY | Q4 FY21 | QoQ | ||||||||||||||||
| Segment | (Rs.) | (Rs.) | Gr % | (Rs.) | Gr % | |||||||||||||||
| Global Generics | 41,113 | 35,075 | 17 | 38,737 | 6 | |||||||||||||||
| North America | 17,390 | 17,282 | 1 | 17,491 | (1 | ) | ||||||||||||||
| Europe | 3,994 | 3,551 | 12 | 3,956 | 1 | |||||||||||||||
| India | 10,600 | 6,260 | 69 | 8,445 | 26 | |||||||||||||||
| Emerging Markets | 9,129 | 7,984 | 14 | 8,845 | 3 | |||||||||||||||
| Pharmaceutical Services and Active Ingredients (PSAI) | 7,540 | 8,553 | (12 | ) | 7,915 | (5 | ) | |||||||||||||
| Proprietary Products & Others | 541 | 547 | (1 | ) | 632 | (14 | ) | |||||||||||||
| Total | 49,194 | 44,175 | 11 | 47,284 | 4 |
We continue to play our role in the fight
against Covid-19 by acting proactively to bring multiple preventive and curative treatment options, including a vaccine. Some of
our major Covid-19 products are:
Sputnik V vaccine: We launched the
vaccine in India in May 2021 after receiving Emergency Use Authorization (EUA) in April 2021. We are working with RDIF for ramping
up supplies. We are also working with six CMOs in India for manufacturing readiness. We have launched it across 80 cities and 2.5+
Lakh people have been vaccinated so far. We are also working on Sputnik Light, for which Russia phase 3 trials will be leveraged
for India approval as per recommendation from SEC.
Remdesivir: We launched it in India
and ramped up our supplies in this quarter to meet with the higher demand due to surge of the COVID cases during the second wave
Avigan (Favipiravir): We launched
it in India and also in few other markets.
2-deoxy-D-glucose (2-DG): We developed
it in collaboration with DRDO lab and received EUA as adjunct therapy for hospitalized moderate to severe Covid-19 patients. We
have launched it in India in June 2021.
Molnupiravir: We are collaborating
with 5 other pharmaceutical companies for the clinical trial of the investigational oral anti-viral drug for the treatment of mild
Covid-19 in an outpatient setting in India.
Other Covid drugs: We are also working
on Baricitinib and several other covid drugs for treatment ranging from mild to severe conditions.
Global Generics (GG)
Revenues from GG segment at Rs.
Revenues from North America at Rs.
Revenues from Europe at Rs. 4.0
billion. Year-on-year growth of 12% and sequential growth of 1% was primarily on account of volume traction in base business and
new product launches across our markets, which was partially offset by price erosion.
Revenues from India at Rs. 10.6
Revenues from Emerging Markets at
Rs. 9.1 billion. Year-on-year growth of 14% and sequential growth of 3%:
Pharmaceutical Services and Active Ingredients
Revenues from PSAI at Rs. 7.5 billion.
Year-on-year decline of 12% and sequential decline of 5%.
Proprietary Products (PP) & Others
Revenues from PP & Others at
Rs. 541 million. Year-on-year growth of 1% and sequential decline of 14%.
Statement Highlights:
Call Details (05:30 pm IST, 08:00 am EDT, July 27, 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.
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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, NSEIFSC: DRREDDY) 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, and (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, 2021. The company assumes no obligation
to update any information contained herein."
The company assumes no obligation to update any information