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 |
Reddy's Q4 & FY22 Financial Results
Hyderabad, India, May 19, 2022: Dr.
Reddy's Laboratories Ltd. (BSE: 500124 | NSE: DRREDDY | NYSE: RDY | NSEIFSC: DRREDDY) today announced its consolidated financial
results for the fourth quarter and full year ended March 31, 2022. The information mentioned in this release is on the basis of
consolidated financial statements under International Financial Reporting Standards (IFRS).
| Q4 Performance Summary | FY22 Performance Summary | |
| Rs. 5,437 Cr Revenue [Up: 15% YoY; 2% QoQ] 52.9% Gross Margin [Q4 FY21: 53.7%; Q3 FY22: 53.8%] Rs.1,567 Cr SGNA expenses [Up: 9% YoY; 2% QoQ] Rs. 433 Cr R&D expenses [8.0% of Revenues] Rs. 1,298 Cr EBITDA [23.9% of Revenues; Up: 15% YoY; 3% QoQ] Rs. 248 Cr* Profit before Tax [Down: 60% YoY; 74% QoQ] Rs. 88 Cr Profit after Tax [Down: 76% YoY; 88% QoQ] | Rs. 21,439 Cr Revenue [Up: 13% YoY] 53.1% Gross Margin [FY21: 54.3%] Rs. 6,208 Cr SGNA expenses [Up: 14% YoY] Rs. 1,748 Cr R&D expenses [8.2% of Revenues] Rs. 5,140 Cr EBITDA [24.0% of Revenues; Up: 8% YoY] Rs. 3,230 Cr* Profit before Tax [Up: 22% YoY] Rs. 2,357 Cr Profit after Tax [Up: 37% YoY] |
* Excluding impairment of non-current assets and provision
related to Texas litigation, Q4 FY 22 PBT is Rs. 1,098 cr (growth of 37%) and FY 22 PBT is Rs. 4,084 cr (growth of 17%)
Commenting on the results, Co-Chairman
& MD, G V Prasad said: "We delivered healthy growth in revenue, though the profits were impacted by impairment charges.
In spite of multiple external challenges, our core businesses performed well driven by an increase in market share, some strong
launches and productivity improvement. We will continue to focus on growing our core businesses, invest in future growth drivers,
and work towards greater integration of Sustainability in our businesses."
Dr. Reddy's Laboratories Limited
Consolidated Income Statement
| Q4 FY22 | Q4 FY21 | YoY | Q3 FY22 | QoQ | ||||||||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | Gr % | ($) | (Rs.) | Gr% | ||||||||||||||||||||||||
| Revenues | 717 | 54,368 | 623 | 47,284 | 15 | 701 | 53,197 | 2 | ||||||||||||||||||||||||
| Cost of Revenues | 338 | 25,625 | 289 | 21,909 | 17 | 324 | 24,585 | 4 | ||||||||||||||||||||||||
| Gross Profit | 379 | 28,743 | 334 | 25,375 | 13 | 377 | 28,612 | 0 | ||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||
| Selling, General & Administrative expenses | 207 | 15,674 | 189 | 14,370 | 9 | 203 | 15,411 | 2 | ||||||||||||||||||||||||
| Research and Development expenses | 57 | 4,326 | 54 | 4,094 | 6 | 55 | 4,159 | 4 | ||||||||||||||||||||||||
| Impairment of non-current assets | 99 | 7,515 | 24 | 1,835 | 310 | 1 | 47 | |||||||||||||||||||||||||
| Other operating income | (4 | ) | (291 | ) | (8 | ) | (587 | ) | (50 | ) | (3 | ) | (240 | ) | 21 | |||||||||||||||||
| Results from operating activities | 20 | 1,519 | 75 | 5,663 | (73 | ) | 122 | 9,235 | (84 | ) | ||||||||||||||||||||||
| Net finance income | (11 | ) | (859 | ) | (4 | ) | (318 | ) | 170 | (4 | ) | (289 | ) | 197 | ||||||||||||||||||
| Share of profit of equity accounted investees | (1 | ) | (105 | ) | (2 | ) | (179 | ) | (41 | ) | (2 | ) | (185 | ) | (43 | ) | ||||||||||||||||
| Profit before income tax | 33 | 2,483 | 81 | 6,160 | (60 | ) | 128 | 9,709 | (74 | ) | ||||||||||||||||||||||
| Income tax expense | 21 | 1,608 | 33 | 2,536 | (37 | ) | 35 | 2,644 | (39 | ) | ||||||||||||||||||||||
| Profit for the period | 12 | 875 | 48 | 3,624 | (76 | ) | 93 | 7,065 | (88 | ) | ||||||||||||||||||||||
| Diluted Earnings Per Share (EPS) | 0.07 | 5.26 | 0.29 | 21.80 | (76 | ) | 0.56 | 42.48 | (88 | ) |
| As % to revenues | Q4 FY22 | Q4 FY21 | Q3 FY22 | |||||||||
| Gross Profit | 52.9 | 53.7 | 53.8 | |||||||||
| SG&A | 28.8 | 30.4 | 29.0 | |||||||||
| R&D | 8.0 | 8.7 | 7.8 | |||||||||
| EBITDA | 23.9 | 23.8 | 23.8 | |||||||||
| PBT | 4.6 | 13.0 | 18.3 | |||||||||
| PAT | 1.6 | 7.7 | 13.3 |
| Q4 FY22 | Q4 FY21 | Q3 FY22 | ||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | ||||||||||||||||||
| Profit before Income Tax | 33 | 2,483 | 81 | 6,160 | 128 | 9,709 | ||||||||||||||||||
| Interest (income) / expense (net)* | 0 | 24 | 1 | 75 | (1 | ) | (72 | ) | ||||||||||||||||
| Depreciation | 27 | 2,039 | 28 | 2,089 | 27 | 2,066 | ||||||||||||||||||
| Amortization | 12 | 920 | 14 | 1,080 | 12 | 910 | ||||||||||||||||||
| Impairment | 99 | 7,515 | 24 | 1,836 | 1 | 47 | ||||||||||||||||||
| EBITDA | 171 | 12,980 | 148 | 11,239 | 167 | 12,659 |
* Includes income from Investments
Revenue Mix by Segment
| Q4 FY22 | Q4 FY21 | YoY | Q3 FY22 | QoQ | ||||||||||||||||
| Segment | (Rs.) | (Rs.) | Gr % | (Rs.) | Gr % | |||||||||||||||
| Global Generics | 46,118 | 38,737 | 19 | 44,508 | 4 | |||||||||||||||
| North America | 19,971 | 17,491 | 14 | 18,645 | 7 | |||||||||||||||
| Europe | 4,444 | 3,956 | 12 | 4,058 | 10 | |||||||||||||||
| India | 9,689 | 8,445 | 15 | 10,266 | (6 | ) | ||||||||||||||
| Emerging Markets | 12,013 | 8,845 | 36 | 11,539 | 4 | |||||||||||||||
| Pharmaceutical Services and Active Ingredients (PSAI) | 7,557 | 7,915 | (5 | ) | 7,271 | 4 | ||||||||||||||
| Proprietary Products & Others | 693 | 632 | 10 | 1,418 | (51 | ) | ||||||||||||||
| Total | 54,368 | 47,284 | 15 | 53,197 | 2 |
Dr. Reddy's Laboratories Limited
Consolidated Income Statement
| FY22 | FY21 | Gr | ||||||||||||||||||||||||||
| Particulars | ($) | (Rs.) | % | ($) | (Rs.) | % | % | |||||||||||||||||||||
| Revenue | 2,826 | 2,14,391 | 100.0 | 2,501 | 1,89,722 | 100.0 | 13 | |||||||||||||||||||||
| Cost of revenues | 1,325 | 1,00,551 | 46.9 | 1,142 | 86,645 | 45.7 | 16 | |||||||||||||||||||||
| Gross profit | 1,500 | 1,13,840 | 53.1 | 1,359 | 1,03,077 | 54.3 | 10 | |||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||
| Selling, General & Administrative expenses | 818 | 62,081 | 29.0 | 720 | 54,650 | 28.8 | 14 | |||||||||||||||||||||
| Research and Development expenses | 230 | 17,482 | 8.2 | 218 | 16,541 | 8.7 | 6 | |||||||||||||||||||||
| Impairment of non-current assets | 100 | 7,562 | 3.5 | 113 | 8,588 | 4.5 | (12 | ) | ||||||||||||||||||||
| Other operating income | (36 | ) | (2,761 | ) | (1.3 | ) | (13 | ) | (982 | ) | (0.5 | ) | 181 | |||||||||||||||
| Results from operating activities | 389 | 29,476 | 13.7 | 320 | 24,280 | 12.8 | 21 | |||||||||||||||||||||
| Net finance income | (28 | ) | (2,119 | ) | (1.0 | ) | (22 | ) | (1,653 | ) | (0.9 | ) | 28 | |||||||||||||||
| Share of profit of equity accounted investees | (9 | ) | (703 | ) | (0.3 | ) | (6 | ) | (480 | ) | (0.3 | ) | 46 | |||||||||||||||
| Profit before income tax | 426 | 32,298 | 15.1 | 348 | 26,413 | 13.9 | 22 | |||||||||||||||||||||
| Income tax expense | 115 | 8,730 | 4.1 | 121 | 9,175 | 4.8 | (5 | ) | ||||||||||||||||||||
| Profit for the period | 311 | 23,568 | 11.0 | 227 | 17,238 | 9.1 | 37 | |||||||||||||||||||||
| Diluted EPS | 1.87 | 141.69 | 1.37 | 103.65 | 37 |
| FY22 | FY21 | |||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | ||||||||||||
| Profit before Income Tax | 426 | 32,298 | 348 | 26,413 | ||||||||||||
| Interest income (net)* | -4 | -284 | -5 | -412 | ||||||||||||
| Depreciation | 107 | 8,152 | 112 | 8,527 | ||||||||||||
| Amortization | 48 | 3,672 | 56 | 4,269 | ||||||||||||
| Impairment | 100 | 7,562 | 113 | 8,589 | ||||||||||||
| EBITDA | 677 | 51,400 | 625 | 47,386 |
* Includes income from Investments
Key Balance Sheet Items
| As on 31st Mar 2022 | As on 31st Dec 2021 | As on 31st Mar 2021 | ||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | ||||||||||||||||||
| Cash and cash equivalents and other investments | 633 | 48,033 | 495 | 37,556 | 521 | 39,531 | ||||||||||||||||||
| Trade receivables (current & non-current) | 881 | 66,818 | 824 | 62,507 | 656 | 49,759 | ||||||||||||||||||
| Inventories | 671 | 50,884 | 655 | 49,675 | 599 | 45,412 | ||||||||||||||||||
| Property, plant and equipment | 819 | 62,169 | 830 | 62,971 | 753 | 57,111 | ||||||||||||||||||
| Goodwill and Other Intangible assets | 417 | 31,664 | 482 | 36,581 | 530 | 40,216 | ||||||||||||||||||
| Loans and borrowings (current & non-current) | 446 | 33,845 | 371 | 28,164 | 399 | 30,308 | ||||||||||||||||||
| Trade payables | 337 | 25,572 | 323 | 24,492 | 313 | 23,744 | ||||||||||||||||||
| Equity | 2,511 | 1,90,527 | 2,504 | 1,90,016 | 2,281 | 1,73,062 |
Revenue Mix by Segment [year on year]
| FY22 | FY21 | Gr | ||||||||||||||||||||||||||
| Segment | ($) | (Rs.) | % | ($) | (Rs.) | % | % | |||||||||||||||||||||
| Global Generics | 2,362 | 1,79,170 | 84 | % | 2,035 | 1,54,404 | 81 | % | 16 | % | ||||||||||||||||||
| North America | 987 | 74,915 | 35 | % | 929 | 70,494 | 37 | % | 6 | % | ||||||||||||||||||
| Europe | 219 | 16,631 | 8 | % | 203 | 15,404 | 8 | % | 8 | % | ||||||||||||||||||
| India | 553 | 41,957 | 20 | % | 440 | 33,419 | 18 | % | 26 | % | ||||||||||||||||||
| Emerging Markets | 602 | 45,667 | 21 | % | 462 | 35,087 | 18 | % | 30 | % | ||||||||||||||||||
| Pharmaceutical Services and Active Ingredients (PSAI) | 405 | 30,740 | 14 | % | 422 | 31,982 | 17 | % | -4 | % | ||||||||||||||||||
| Proprietary Products & Others | 59 | 4,481 | 2 | % | 44 | 3,336 | 2 | % | 34 | % | ||||||||||||||||||
| Total | 2,826 | 2,14,391 | 100 | % | 2,501 | 1,89,722 | 100 | % | 13 | % |
Revenue Analysis [Q4 and full year FY22]
Global Generics (GG)
Pharmaceutical Services and Active Ingredients
Proprietary Products (PP) & Others
Income Statement Highlights:
Gross profit margin for the Q4
at 52.9% (GG: 58.2%, PSAI: 18.4%). Gross margin declined by ~80 bps YoY and by ~90 bps QoQ. The decline was primarily due to price
erosion, an increase in the inventory provisions, which was partly offset by income from divestment of non-core brands.
Earnings Call Details (05:30 pm IST,
08:00 am EDT, May 19, 2022)
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 |
| 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 May 25th, 2022. For play back dial in phone No: +91 22 7194 5757 | +91 22 6663
5757, and Playback Code is 93634.
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 businesses, 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, 2021. The company
assumes no obligation to update any information contained herein.