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 |
Dr. Reddy's Q1 FY23 Financial Results
Hyderabad, India, July 28, 2022: 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, 2022. The information mentioned in this release is on the basis of consolidated financial statements
under International Financial Reporting Standards (IFRS).
| Revenues | Rs. 5,215 Cr |
| [Up: 6% YoY; Down: 4% QoQ] | |
| Gross Margin | 49.9% |
| [Q1 FY22: 52.2%; Q4 FY22: 52.9%] | |
| SG&A Expenses | Rs. 1,549 Cr |
| [Up: 3% YoY; Down: 1% QoQ] | |
| R&D Expenses | Rs. 433 Cr |
| [8.3% of Revenues] | |
| EBITDA | Rs. 1,779 Cr |
| [34.1% of Revenues] | |
| Profit before Tax | Rs. 1,466 Cr |
| [Up: 97% YoY; Up: 490% QoQ] | |
| Profit after Tax | Rs. 1,188 Cr |
| [Up: 108% YoY; Up: 1,257% QoQ] |
Commenting on the results, Co-Chairman & MD, G V Prasad
said "Our underlying business revenues adjusted for covid products contribution during last year have grown well. The profits were
aided by a few non-recurring incomes, offsetting the near term headwinds. We continue to improve the health of our core businesses through
productivity improvement and robust product pipelines".
Dr. Reddy's Laboratories Limited and Subsidiaries
Consolidated Income Statement
| Q1 FY23 | Q1 FY22 | YoY | Q4 FY22 | QoQ | ||||||||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | Gr % | ($) | (Rs.) | Gr% | ||||||||||||||||||||||||
| Revenues | 660 | 52,154 | 623 | 49,194 | 6 | 688 | 54,368 | (4 | ) | |||||||||||||||||||||||
| Cost of Revenues | 331 | 26,148 | 297 | 23,495 | 11 | 324 | 25,625 | 2 | ||||||||||||||||||||||||
| Gross Profit | 329 | 26,006 | 325 | 25,699 | 1 | 364 | 28,743 | (10 | ) | |||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||
| Selling, General & Administrative expenses | 196 | 15,493 | 190 | 15,045 | 3 | 198 | 15,674 | (1 | ) | |||||||||||||||||||||||
| Research and Development expenses | 55 | 4,325 | 57 | 4,534 | (5 | ) | 55 | 4,326 | (0 | ) | ||||||||||||||||||||||
| Impairment of non-current assets | - | - | - | - | 95 | 7,515 | (100 | ) | ||||||||||||||||||||||||
| Other operating income | (76 | ) | (6,024 | ) | (6 | ) | (487 | ) | 1,137 | (4 | ) | (291 | ) | 1,970 | ||||||||||||||||||
| Results from operating activities | 155 | 12,212 | 84 | 6,607 | 85 | 19 | 1,519 | 704 | ||||||||||||||||||||||||
| Net finance income | (30 | ) | (2,349 | ) | (8 | ) | (652 | ) | 260 | (11 | ) | (859 | ) | 173 | ||||||||||||||||||
| Share of profit of equity accounted investees | (1 | ) | (94 | ) | (2 | ) | (166 | ) | (43 | ) | (1 | ) | (105 | ) | (10 | ) | ||||||||||||||||
| Profit before income tax | 185 | 14,655 | 94 | 7,425 | 97 | 31 | 2,483 | 490 | ||||||||||||||||||||||||
| Income tax expense | 35 | 2,779 | 22 | 1,717 | 62 | 20 | 1,608 | 73 | ||||||||||||||||||||||||
| Profit for the period | 150 | 11,876 | 72 | 5,708 | 108 | 11 | 875 | 1,257 | ||||||||||||||||||||||||
| Diluted Earnings Per Share (EPS) | 0.90 | 71.40 | 0.43 | 34.34 | 109 | 0.07 | 5.26 | 1,261 |
| As % to revenues | Q1 FY23 | Q1 FY22 | Q4 FY22 | |||||||||
| Gross Profit | 49.9 | 52.2 | 52.9 | |||||||||
| SG&A | 29.7 | 30.6 | 28.8 | |||||||||
| R&D | 8.3 | 9.2 | 8.0 | |||||||||
| EBITDA | 34.1 | 20.7 | 23.9 | |||||||||
| PBT | 28.1 | 15.1 | 4.6 | |||||||||
| PAT | 22.8 | 11.6 | 1.6 |
| Q1 FY23 | Q1 FY22 | Q4 FY22 | ||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | ||||||||||||||||||
| Profit before Income Tax | 185 | 14,655 | 94 | 7,425 | 31 | 2,483 | ||||||||||||||||||
| Interest (income) / expense (net)* | 1 | 84 | (2 | ) | (142 | ) | 0 | 24 | ||||||||||||||||
| Depreciation | 26 | 2,050 | 25 | 1,973 | 26 | 2,039 | ||||||||||||||||||
| Amortization | 13 | 1,000 | 12 | 932 | 12 | 920 | ||||||||||||||||||
| Impairment | - | - | - | - | 95 | 7,515 | ||||||||||||||||||
| EBITDA | 225 | 17,789 | 129 | 10,188 | 164 | 12,980 |
* Includes income from Investments
Key Balance Sheet Items
| As on 30 th Jun 2022 | As on 31 st Mar 2022 | As on 30 th Jun 2021 | ||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | ||||||||||||||||||
| Cash and cash equivalents and other investments | 449 | 35,467 | 608 | 48,033 | 435 | 34,356 | ||||||||||||||||||
| Trade receivables | 927 | 73,274 | 846 | 66,818 | 774 | 61,148 | ||||||||||||||||||
| Inventories | 656 | 51,810 | 644 | 50,884 | 643 | 50,771 | ||||||||||||||||||
| Property, plant and equipment | 808 | 63,826 | 787 | 62,169 | 742 | 58,636 | ||||||||||||||||||
| Goodwill and Other Intangible assets | 458 | 36,213 | 401 | 31,664 | 503 | 39,746 | ||||||||||||||||||
| Loans and borrowings (current & non-current) | 312 | 24,666 | 428 | 33,845 | 422 | 33,373 | ||||||||||||||||||
| Trade payables | 317 | 25,052 | 324 | 25,572 | 362 | 28,607 | ||||||||||||||||||
| Equity | 2,531 | 2,00,039 | 2,411 | 1,90,527 | 2,254 | 1,78,114 |
Revenue Mix by Segment
| Q1 FY23 | Q1 FY22 | YoY | Q4 FY22 | QoQ | ||||||||||||||||
| Segment | (Rs.) | (Rs.) | Gr % | (Rs.) | Gr % | |||||||||||||||
| Global Generics | 44,324 | 41,113 | 8 | 46,118 | (4 | ) | ||||||||||||||
| North America | 17,815 | 17,390 | 2 | 19,971 | (11 | ) | ||||||||||||||
| Europe | 4,141 | 3,994 | 4 | 4,444 | (7 | ) | ||||||||||||||
| India | 13,339 | 10,600 | 26 | 9,689 | 38 | |||||||||||||||
| Emerging Markets | 9,028 | 9,129 | (1 | ) | 12,013 | (25 | ) | |||||||||||||
| Pharmaceutical Services and Active Ingredients (PSAI) | 7,090 | 7,540 | (6 | ) | 7,557 | (6 | ) | |||||||||||||
| Others | 740 | 541 | 37 | 693 | 7 | |||||||||||||||
| Total | 52,154 | 49,194 | 6 | 54,368 | (4 | ) |
Global Generics (GG)
Revenues from GG segment at Rs. 44.3 billion:
Revenues from North America at Rs. 17.8 billion:
Revenues from Europe at Rs. 4.1 billion:
Revenues from India at Rs. 13.3 billion:
Revenues from Emerging Markets at Rs. 9.0 billion.
Year-on-year decline of 1% and sequential decline of 25%:
Pharmaceutical Services and Active Ingredients (PSAI)
Revenues from PSAI at Rs. 7.1 billion. Year-on-year
and sequential decline of 6% each.
Income Statement Highlights:
Earnings Call Details (06:30 pm IST, 09:00 am EDT, July 28, 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.
Conference Joining Information
Option 1: Express Join with DiamondPass
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 August 3rd, 2022. For play back dial in phone No: +91 22 7194 5757 | +91 22 6663 5757, and Playback Code is 96436.
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
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, 2022. The company assumes no obligation to update any information contained herein."