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 |
Dr. Reddy's Q2 & H1 FY23 Financial
India, October 28, 2022: 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, 2022. 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. 6,306 Cr Revenue [Up: 21% QoQ; 9% YoY] | Rs. 11,521 Cr Revenue [Up: 8% YoY] | |
| 59.1% Gross Margin [Q1 FY23: 49.9%; Q2 FY22: 53.4%] | 54.9% Gross Margin [H1 FY22: 52.9%] | |
| Rs. 1,656 Cr SGNA expenses [Up: 7% QoQ; 4% YoY] | Rs. 3,205 Cr SGNA expenses [Up: 3% YoY] | |
| Rs. 487 Cr R&D expenses [7.7% of Revenues] | Rs. 919 Cr R&D expenses [8.0% of Revenues] | |
| Rs. 1,932 Cr EBITDA [30.6% of Revenues] | Rs. 3,711 Cr EBITDA [32.2% of Revenues] | |
| Rs. 1,611 Cr Profit before Tax [Up: 10% QoQ; 27% YoY] | Rs. 3,077 Cr Profit before Tax [Up: 53% YoY] | |
| Rs. 1,113 Cr Profit after Tax [Down: 6% QoQ; Up: 12% YoY] | Rs. 2,300 Cr Profit after Tax [Up: 47% YoY] |
on the results, Co-Chairman & MD, G V Prasad said "We are pleased with the strong financial performance in the current
quarter, driven by the launch of Lenalidomide capsules in the US market. Our focus is to build a robust pipeline with products that improve
affordablity and access to patients globally. We continue to progress well in our productivity, innovation and sustainability agenda."
Reddy's Laboratories Limited and Subsidiaries
| Q2 FY23 | Q2 FY22 | YoY | Q1 FY23 | QoQ | ||||||||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | Gr % | ($) | (Rs.) | Gr% | ||||||||||||||||||||||||
| Revenues | 775 | 63,057 | 708 | 57,632 | 9 | 641 | 52,154 | 21 | ||||||||||||||||||||||||
| Cost of Revenues | 317 | 25,810 | 330 | 26,846 | (4 | ) | 321 | 26,148 | (1 | ) | ||||||||||||||||||||||
| Gross Profit | 458 | 37,247 | 378 | 30,786 | 21 | 320 | 26,006 | 43 | ||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||
| Selling, General & Administrative expenses | 204 | 16,560 | 196 | 15,951 | 4 | 190 | 15,493 | 7 | ||||||||||||||||||||||||
| Research and Development expenses | 60 | 4,869 | 55 | 4,463 | 9 | 53 | 4,325 | 13 | ||||||||||||||||||||||||
| Impairment of non-current assets | 0 | 25 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||
| Other operating income | (4 | ) | (334 | ) | (21 | ) | (1743 | ) | (81 | ) | (74 | ) | (6,024 | ) | (94 | ) | ||||||||||||||||
| Results from operating activities | 198 | 16,127 | 149 | 12,115 | 33 | 150 | 12,212 | 32 | ||||||||||||||||||||||||
| Net finance income | 2 | 156 | (4 | ) | (319 | ) | (149 | ) | (29 | ) | (2,349 | ) | (107 | ) | ||||||||||||||||||
| Share of profit of equity accounted investees | (2 | ) | (140 | ) | (3 | ) | (247 | ) | (43 | ) | (1 | ) | (94 | ) | 49 | |||||||||||||||||
| Profit before income tax | 198 | 16,111 | 156 | 12,681 | 27 | 180 | 14,655 | 10 | ||||||||||||||||||||||||
| Income tax expense | 61 | 4,983 | 34 | 2761 | 80 | 34 | 2,779 | 79 | ||||||||||||||||||||||||
| Profit for the period | 137 | 11,128 | 122 | 9,920 | 12 | 146 | 11,876 | (6 | ) | |||||||||||||||||||||||
| Diluted Earnings Per Share (EPS) | 0.82 | 66.89 | 0.73 | 59.65 | 12 | 0.88 | 71.40 | (6 | ) |
| As % to revenues | Q2 FY23 | Q2 FY22 | Q1 FY23 | |||||||||
| Gross Profit | 59.1 | 53.4 | 49.9 | |||||||||
| SG&A | 26.3 | 27.7 | 29.7 | |||||||||
| R&D | 7.7 | 7.7 | 8.3 | |||||||||
| EBITDA | 30.6 | 27.0 | 34.1 | |||||||||
| PBT | 25.5 | 22.0 | 28.1 | |||||||||
| PAT | 17.6 | 17.2 | 22.8 |
| Q2 FY23 | Q2 FY22 | Q1 FY23 | ||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | ||||||||||||||||||
| Profit before Income Tax | 198 | 16,111 | 156 | 12,681 | 180 | 14,655 | ||||||||||||||||||
| Interest income (net)* | 1 | 61 | (1 | ) | (93 | ) | 1 | 84 | ||||||||||||||||
| Depreciation | 26 | 2,107 | 25 | 2,075 | 25 | 2,050 | ||||||||||||||||||
| Amortization | 13 | 1,018 | 11 | 910 | 12 | 1,000 | ||||||||||||||||||
| Impairment | 0 | 25 | 0 | 0 | 0 | 0 | ||||||||||||||||||
| EBITDA | 237 | 19,322 | 191 | 15,572 | 219 | 17,789 |
Key Balance Sheet Items
| As on 30th Sep 2022 | As on 30th Jun 2022 | As on 30th Sep 2021 | ||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | ||||||||||||||||||
| Cash and cash equivalents and other investments | 360 | 29,306 | 436 | 35,468 | 346 | 28,188 | ||||||||||||||||||
| Trade receivables | 946 | 76,987 | 901 | 73,274 | 844 | 68,666 | ||||||||||||||||||
| Inventories | 603 | 49,042 | 637 | 51,810 | 611 | 49,700 | ||||||||||||||||||
| Property, plant and equipment | 784 | 63,817 | 784 | 63,826 | 740 | 60,229 | ||||||||||||||||||
| Goodwill and Other Intangible assets | 443 | 36,084 | 445 | 36,213 | 457 | 37,206 | ||||||||||||||||||
| Loans and borrowings (current & non-current) | 212 | 17,289 | 303 | 24,666 | 372 | 30,273 | ||||||||||||||||||
| Trade payables | 280 | 22,778 | 308 | 25,052 | 314 | 25,552 | ||||||||||||||||||
| Equity | 2,534 | 2,06,225 | 2,463 | 2,00,389 | 2,260 | 1,83,928 |
Revenue Mix by Segment
| Q2 FY23 | Q2 FY22 | YoY | Q1 FY23 | QoQ | ||||||||||||||||
| Segment | (Rs.) | (Rs.) | Growth % | (Rs.) | Growth % | |||||||||||||||
| Global Generics | 55,946 | 47,431 | 18 | 44,324 | 26 | |||||||||||||||
| North America | 28,001 | 18,909 | 48 | 17,815 | 57 | |||||||||||||||
| Europe | 4,199 | 4,135 | 2 | 4,141 | 1 | |||||||||||||||
| India | 11,500 | 11,402 | 1 | 13,339 | (14 | ) | ||||||||||||||
| Emerging Markets | 12,246 | 12,985 | (6 | ) | 9,028 | 36 | ||||||||||||||
| Pharmaceutical Services and Active Ingredients (PSAI) | 6,434 | 8,372 | (23 | ) | 7,090 | (9 | ) | |||||||||||||
| Others | 677 | 1,829 | (63 | ) | 740 | (9 | ) | |||||||||||||
| Total | 63,057 | 57,632 | 9 | 52,154 | 21 |
Global Generics (GG)
Revenues from GG segment at Rs. 55.9
Revenues from North America at Rs. 28.0
Revenues from Europe at Rs. 4.2 billion, with year-on-year growth of 2%
and sequential quarter growth of 1%. This was driven by volume traction in base business and new product launches across our markets,
however, it was partially offset by price erosion in some molecules and the impact of adverse forex rates during the quarter. We launched
ten new products across countries during this quarter.
Revenues from India at Rs. 11.5 billion:
| Year-on-year growth of 1% impacted due to higher base of Q1 FY22, which included contribution from covid product sales. Adjusted for this, we have grown in double digit. | ||
| Sequential quarter declined by 14% primarily on account of high base impact, as we had recognized divestment income of a few non-core brands in Q1 FY23. |
Revenues from Emerging Markets at Rs. 12.2 billion. Year-on-year decline
of 6% and sequential quarter growth of 36%:
Pharmaceutical Services and Active Ingredients
Revenues from PSAI at Rs. 6.4 billion with a year-on-year decline of 23%
and sequential decline of 9%.
| Year-on-year decline was primarily on account lower volumes due to higher base in Q2 FY22 which had covid product sales, partly offset by new product sales and favorable forex rates. | ||
| Sequential decline was majorly due to lower traction in the volumes for some of our products, partly offset by new product sales. |
Income Statement Highlights:
Earnings Call Details (06:30 pm IST, 09:00 am EDT, October 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.
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 3rd, 2022. 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
Dr. Reddy's: Dr. Reddy's Laboratories Ltd. (BSE: 500124, NSE: DRREDDY, NYSE: RDY, NSEIFSC: DRREDDY) is a global pharmaceutical
company headquartered in Hyderabad, India. Established in 1984, we are committed to providing access to affordable and innovative medicines.
Driven by our purpose of Good Health Can't Wait', we offer a portfolio of products and services including APIs, generics,
branded generics, biosimilars and OTC. Our major therapeutic areas of focus are gastrointestinal, cardiovascular, diabetology, oncology,
pain management and dermatology. Our major markets include - USA, India, Russia & CIS countries, China, Brazil, and Europe.
As a company with a history of deep science that has led to several industry firsts, we continue to plan ahead and invest in businesses
of the future. As an early adopter of sustainability and ESG actions, we released our first Sustainability Report in 2004. Our current
ESG goals aim to set the bar high in environmental stewardship; access and affordability for patients; diversity; and governance. 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