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 | USHA iyer ushaiyer@drreddys.com |
Q2 & H1 FY22 Financial Results
Hyderabad, India, October 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 half year ended September 30, 2021. 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. 5,763 Cr Revenue [Up: 17% QoQ; 18% YoY] | Rs. 10,683 Cr Revenue [Up: 15% YoY] | |
| 53.4% Gross Margin [Q1 FY22: 52.2%; Q2 FY21: 53.9%] | 52.9% Gross Margin [H1 FY21: 54.9%] | |
| Rs.1,595 Cr SGNA expenses [Up: 6% QoQ; 22% YoY] | Rs. 3,100 Cr SGNA expenses [Up: 20% YoY] | |
| Rs. 446 Cr R&D expenses [7.7% of Revenues] | Rs. 900 Cr R&D expenses [8.4% of Revenues] | |
| Rs. 1,557 Cr EBITDA [27.0% of Revenues] | Rs. 2,576 Cr EBITDA [24.1% of Revenues] | |
| Rs. 1,268 Cr Profit before Tax [Up: 71% QoQ; 47% YoY] | Rs. 2,011 Cr Profit before Tax [Up: 15% YoY] | |
| Rs. 992 Cr Profit after Tax [Up: 74% QoQ; 30% YoY] | Rs. 1,563 Cr Profit after Tax [Up: 16% YoY] |
Commenting on the results, Co-Chairman &
MD, G V Prasad said "I am pleased with the improvement in the financial performance across our businesses. While we continue
to strengthen our core businesses of generics and APIs, we are also making investments in our long-term growth drivers and deeper
innovation capabilities. Our focus remains on meeting unmet patient needs around the world in keeping with our purpose".
Laboratories Limited and Subsidiaries
Consolidated Income Statement
| Q2 FY22 | Q2 FY21 | YoY | Q1 FY22 | QoQ | ||||||||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | Gr % | ($) | (Rs.) | Gr% | ||||||||||||||||||||||||
| Revenues | 777 | 57,632 | 660 | 48,967 | 18 | 663 | 49,194 | 17 | ||||||||||||||||||||||||
| Cost of Revenues | 362 | 26,846 | 304 | 22,558 | 19 | 317 | 23,495 | 14 | ||||||||||||||||||||||||
| Gross Profit | 415 | 30,786 | 356 | 26,409 | 17 | 347 | 25,699 | 20 | ||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||
| Selling, General & Administrative expenses | 215 | 15,951 | 177 | 13,107 | 22 | 203 | 15,045 | 6 | ||||||||||||||||||||||||
| Research and Development expenses | 60 | 4,463 | 59 | 4,359 | 2 | 61 | 4,534 | (2 | ) | |||||||||||||||||||||||
| Impairment of non-current assets | - | - | 11 | 781 | (100 | ) | - | - | - | |||||||||||||||||||||||
| Other operating income | (24 | ) | (1,743 | ) | (2 | ) | (149 | ) | 1070 | (7 | ) | (487 | ) | 258 | ||||||||||||||||||
| Results from operating activities | 163 | 12,115 | 112 | 8,311 | 46 | 89 | 6,607 | 83 | ||||||||||||||||||||||||
| Net finance income | (4 | ) | (319 | ) | (3 | ) | (237 | ) | 35 | (9 | ) | (652 | ) | (51 | ) | |||||||||||||||||
| Share of profit of equity accounted investees | (3 | ) | (247 | ) | (1 | ) | (73 | ) | 238 | (2 | ) | (166 | ) | 49 | ||||||||||||||||||
| Profit before income tax | 171 | 12,681 | 116 | 8,621 | 47 | 100 | 7,425 | 71 | ||||||||||||||||||||||||
| Income tax expense | 37 | 2,761 | 13 | 998 | 177 | 23 | 1,717 | 61 | ||||||||||||||||||||||||
| Profit for the period | 134 | 9,920 | 103 | 7,623 | 30 | 77 | 5,708 | 74 | ||||||||||||||||||||||||
| Diluted Earnings Per Share (EPS) | 0.80 | 59.65 | 0.62 | 45.83 | 30 | 0.46 | 34.34 | 74 |
| As % to revenues | Q2 FY22 | Q2 FY21 | Q1 FY22 | |||||||||
| Gross Profit | 53.4 | 53.9 | 52.2 | |||||||||
| SG&A | 27.7 | 26.8 | 30.6 | |||||||||
| R&D | 7.7 | 8.9 | 9.2 | |||||||||
| EBITDA | 27.0 | 25.9 | 20.7 | |||||||||
| PBT | 22.0 | 17.6 | 15.1 | |||||||||
| PAT | 17.2 | 15.6 | 11.6 |
| Q2 FY22 | Q2 FY21 | Q1 FY22 | ||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | ||||||||||||||||||
| Profit before Income Tax | 171 | 12,681 | 116 | 8,621 | 100 | 7,425 | ||||||||||||||||||
| Interest income (net)* | (1 | ) | (93 | ) | (0 | ) | (1 | ) | (2 | ) | (142 | ) | ||||||||||||
| Depreciation | 28 | 2,075 | 30 | 2,188 | 27 | 1,973 | ||||||||||||||||||
| Amortization | 12 | 910 | 15 | 1,084 | 13 | 932 | ||||||||||||||||||
| Impairment | - | - | 11 | 781 | - | - | ||||||||||||||||||
| EBITDA | 210 | 15,572 | 171 | 12,673 | 137 | 10,188 |
Key Balance Sheet Items
| As on 30th Sep 2021 | As on 30th Jun 2021 | As on 30th Sep 2020 | ||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | ||||||||||||||||||
| Cash and cash equivalents and other investments | 380 | 28,188 | 463 | 34,356 | 352 | 26,074 | ||||||||||||||||||
| Trade receivables | 926 | 68,666 | 825 | 61,148 | 679 | 50,335 | ||||||||||||||||||
| Inventories | 670 | 49,700 | 685 | 50,771 | 555 | 41,134 | ||||||||||||||||||
| Property, plant and equipment | 812 | 60,229 | 791 | 58,636 | 742 | 55,026 | ||||||||||||||||||
| Goodwill and Other Intangible assets | 502 | 37,206 | 536 | 39,746 | 614 | 45,553 | ||||||||||||||||||
| Loans and borrowings (current & non-current) | 408 | 30,273 | 450 | 33,373 | 370 | 27,429 | ||||||||||||||||||
| Trade payables | 345 | 25,552 | 386 | 28,607 | 308 | 22,833 | ||||||||||||||||||
| Equity | 2,480 | 1,83,928 | 2,402 | 1,78,114 | 2,229 | 1,65,337 |
Revenue Mix by Segment
| Q2 FY22 | Q2 FY21 | YoY | Q1 FY22 | QoQ | ||||||||||||||||
| Segment | (Rs.) | (Rs.) | Growth % | (Rs.) | Growth % | |||||||||||||||
| Global Generics | 47,431 | 39,841 | 19 | % | 41,113 | 15 | % | |||||||||||||
| North America | 18,909 | 18,328 | 3 | % | 17,390 | 9 | % | |||||||||||||
| Europe | 4,135 | 3,754 | 10 | % | 3,994 | 4 | % | |||||||||||||
| India | 11,402 | 9,123 | 25 | % | 10,600 | 8 | % | |||||||||||||
| Emerging Markets | 12,985 | 8,636 | 50 | % | 9,129 | 42 | % | |||||||||||||
| Pharmaceutical Services and Active Ingredients (PSAI) | 8,372 | 8,505 | -2 | % | 7,540 | 11 | % | |||||||||||||
| Proprietary Products & Others | 1,829 | 621 | 195 | % | 541 | 238 | % | |||||||||||||
| Total | 57,632 | 48,967 | 18 | % | 49,194 | 17 | % |
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. Our major Covid-19
products launched till now include Sputnik V vaccine, Remdesivir, Avigan (Favipiravir) and 2-deoxy-D-glucose (2-DG). We have
commercialized all these products in India and some of these products in overseas markets. Currently, we are conducting clinical
trials for Sputnik Light, Molnupiravir and are also developing several other covid drugs for treatment ranging from mild to severe
Global Generics (GG)
Revenues from GG segment at Rs. 47.4
Revenues from North America at Rs. 18.9
Revenues from Europe at Rs. 4.1 billion.
Year-on-year growth of 10% and sequential quarter growth of 4% 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. 11.4 billion:
Revenues from Emerging Markets at Rs.
13.0 billion. Year-on-year growth of 50% and sequential quarter growth of 42%:
Pharmaceutical Services and Active Ingredients
Revenues from PSAI at Rs. 8.4 billion
with a year-on-year decline of 2% and sequential quarter growth of 11%.
Proprietary Products (PP) & Others
Revenues from PP & Others at Rs.
1.8 billion. Year-on-year growth of 195% and sequential quarter growth of 238% was primarily on account of recognition of a license
fee associated with the sale of our U.S. and Canada territory rights for ELYXYB (celecoxib oral solution) 25 mg/ml, to BioDelivery
Sciences International, Inc.
Income Statement Highlights:
Earnings Call Details (05:30 pm IST, 08:00 am EDT, Oct 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.
Pre-register with the below link and join without waiting for the
| Option 2: Join through below Dial-In Numbers | |
| Universal Access Number: | +91 22 6280 1219 +91 22 7115 8120 |
| 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, 2021. For play back dial in phone No: +91 22 7194 5757 | +91 22 6663 5757, and Playback Code
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
The company assumes no obligation to update
any information contained herein.