Full Press Release Details
| CONTACT | |||
| DR. REDDY'S LABORATORIES LTD. | Investor relationS | Media relationS | |
| 8-2-337, Road No. 3, Banjara Hills, | RICHA PERIWAL | USHA iyer | |
| Hyderabad - 500034. Telangana, India. | richaperiwal@drreddys.com | ushaiyer@drreddys.com |
Q1 FY24 Financial Results
July 26, 2023: 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, 2023. The information mentioned in this release is based on consolidated
financial statements under International Financial Reporting Standards (IFRS).
| Revenues | Rs. 67,384 Mn |
| [Up: 29%* YoY; Up: 7%* QoQ] | |
| Gross Margin | 58.7% |
| [Q1 FY23: 49.9%; Q4 FY23: 57.2%] | |
| SG&A Expenses | Rs. 17,702 Mn |
| [Up: 14% YoY; Down: 2% QoQ] | |
| R&D Expenses | Rs. 4,984 Mn |
| [7.4% of Revenues] | |
| EBITDA | Rs. 21,372 Mn |
| [31.7% of Revenues] | |
| Profit before Tax | Rs. 18,463 Mn |
| [Up: 26%^ YoY; Up: 39%^ QoQ] | |
| Profit after Tax | Rs. 14,025 Mn |
| [Up: 18% YoY; Up: 46% QoQ] |
* Excluding brand divestment income
during the previous periods, Q1 FY24 Sales YoY growth is 35% and QoQ growth is 12%
^ Excluding one offs (settlement income
during the current and previous year and brand divestment income during the previous periods), Q1 FY24 PBT YoY growth is 165% and QoQ
the results, Co-Chairman & MD, G V Prasad said: "We delivered strong sales growth and witnessed robust margin expansion
in Q1FY24 driven by market share gains & new product momentum in our US generics business and superior performance in Russia. We
are on track in executing our strategy, delivering growth while continuing to invest in future growth drivers and innovation to
create sustainable value."
Laboratories Limited and Subsidiaries
| Particulars | Q1 FY24 | Q1 FY23 | YoY | Q4 FY23 | QoQ | |||||||||||||||||||||||||||
| ($) | (Rs.) | ($) | (Rs.) | Gr % | ($) | (Rs.) | Gr% | |||||||||||||||||||||||||
| Revenues | 821 | 67,384 | 636 | 52,154 | 29 | 767 | 62,968 | 7 | ||||||||||||||||||||||||
| Cost of Revenues | 339 | 27,831 | 319 | 26,148 | 6 | 329 | 26,971 | 3 | ||||||||||||||||||||||||
| Gross Profit | 482 | 39,553 | 317 | 26,006 | 52 | 439 | 35,997 | 10 | ||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||
| Selling, General & Administrative expenses | 216 | 17,702 | 189 | 15,493 | 14 | 219 | 17,992 | (2 | ) | |||||||||||||||||||||||
| Research and Development expenses | 61 | 4,984 | 53 | 4,325 | 15 | 65 | 5,366 | (7 | ) | |||||||||||||||||||||||
| Impairment of non-current assets | 0 | 11 | 0 | 0 | 7 | 540 | (98 | ) | ||||||||||||||||||||||||
| Other operating (income)/expense | (10 | ) | (780 | ) | (73 | ) | (6024 | ) | (87 | ) | (3 | ) | (281 | ) | 178 | |||||||||||||||||
| Results from operating activities | 215 | 17,636 | 149 | 12,212 | 44 | 151 | 12,380 | 42 | ||||||||||||||||||||||||
| Net finance (income)/expense | (10 | ) | (784 | ) | (29 | ) | (2349 | ) | (67 | ) | (10 | ) | (799 | ) | (2 | ) | ||||||||||||||||
| Share of profit of equity accounted investees | (1 | ) | (43 | ) | (1 | ) | (94 | ) | (54 | ) | (1 | ) | (76 | ) | (43 | ) | ||||||||||||||||
| Profit before income tax | 225 | 18,463 | 179 | 14,655 | 26 | 162 | 13,255 | 39 | ||||||||||||||||||||||||
| Income tax expense | 54 | 4,438 | 34 | 2779 | 60 | 45 | 3,663 | 21 | ||||||||||||||||||||||||
| Profit for the period | 171 | 14,025 | 145 | 11,876 | 18 | 117 | 9,592 | 46 | ||||||||||||||||||||||||
| Diluted Earnings Per Share (EPS) | 1.03 | 84.22 | 0.87 | 71.40 | 18 | 0.70 | 57.62 | 46 |
| As % to revenues | Q1 FY24 | Q1 FY23 | Q4 FY23 | |||||||||
| Gross Profit | 58.7 | 49.9 | 57.2 | |||||||||
| SG&A | 26.3 | 29.7 | 28.6 | |||||||||
| R&D | 7.4 | 8.3 | 8.5 | |||||||||
| EBITDA | 31.7 | 34.1 | 25.9 | |||||||||
| PBT | 27.4 | 28.1 | 21.1 | |||||||||
| PAT | 20.8 | 22.8 | 15.2 |
| Particulars | Q1 FY24 | Q1 FY23 | Q4 FY23 | |||||||||||||||||||||
| ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | |||||||||||||||||||
| Profit before Income Tax | 225 | 18,463 | 179 | 14,655 | 162 | 13,255 | ||||||||||||||||||
| Interest (income) / expense - Net* | (8 | ) | (685 | ) | 1 | 84 | (8 | ) | (673 | ) | ||||||||||||||
| Depreciation | 28 | 2,281 | 25 | 2,050 | 27 | 2,213 | ||||||||||||||||||
| Amortization | 16 | 1,302 | 12 | 1,000 | 12 | 977 | ||||||||||||||||||
| Impairment | 0 | 11 | 0 | 0 | 7 | 540 | ||||||||||||||||||
| EBITDA | 260 | 21,372 | 217 | 17,789 | 199 | 16,312 |
* Includes income from Investments
| Particulars | As on 30 th Jun 2023 | As on 31 st Mar 2023 | As on 30 th Jun 2022 | |||||||||||||||||||||
| ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | |||||||||||||||||||
| Cash and cash equivalents and other investments | 745 | 61,162 | 761 | 62,456 | 432 | 35,468 | ||||||||||||||||||
| Trade receivables | 939 | 77,095 | 883 | 72,486 | 893 | 73,274 | ||||||||||||||||||
| Inventories | 639 | 52,398 | 593 | 48,670 | 631 | 51,810 | ||||||||||||||||||
| Property, plant and equipment | 819 | 67,207 | 810 | 66,462 | 778 | 63,826 | ||||||||||||||||||
| Goodwill and Other Intangible assets | 516 | 42,306 | 428 | 35,094 | 441 | 36,213 | ||||||||||||||||||
| Loans and borrowings (current & non-current) | 153 | 12,520 | 164 | 13,472 | 301 | 24,666 | ||||||||||||||||||
| Trade payables | 337 | 27,682 | 322 | 26,444 | 305 | 25,052 | ||||||||||||||||||
| Equity | 2,989 | 2,45,259 | 2,815 | 2,30,991 | 2,442 | 2,00,389 |
Revenue Mix by Segment
| Segment | Q1 FY24 | Q1 FY23 | YoY | Q4 FY23 | QoQ | |||||||||||||||
| (Rs.) | (Rs.) | Gr % | (Rs.) | Gr % | ||||||||||||||||
| Global Generics | 60,083 | 44,324 | 36 | % | 54,257 | 11 | % | |||||||||||||
| North America | 31,978 | 17,815 | 79 | % | 25,321 | 26 | % | |||||||||||||
| Europe | 5,071 | 4,141 | 22 | % | 4,960 | 2 | % | |||||||||||||
| India | 11,482 | 13,324 | -14 | % | 12,834 | -11 | % | |||||||||||||
| Emerging Markets | 11,552 | 9,043 | 28 | % | 11,142 | 4 | % | |||||||||||||
| Pharmaceutical Services and Active Ingredients (PSAI) | 6,709 | 7,090 | -5 | % | 7,787 | -14 | % | |||||||||||||
| Others | 592 | 740 | -20 | % | 924 | -36 | % | |||||||||||||
| Total | 67,384 | 52,154 | 29 | % | 62,968 | 7 | % |
Services and Active Ingredients (PSAI)
Income Statement Highlights:
and non-GAAP Financial Measures
contains non-GAAP financial measures within the meaning of Regulation G and Item 10(e) of Regulation S-K. Such non-GAAP financial measures
are measures of our historical performance, financial position or cash flows that are adjusted to exclude or include amounts, as the
case may be, from the most directly comparable financial measure calculated and presented in accordance with IFRS.
this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information
prepared and presented in accordance with IFRS. Our non-GAAP financial measures are not based on any comprehensive set of accounting
rules or principles. These measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness
for comparison purposes.
We believe these non-GAAP
financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison
of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency
with respect to key metrics used by management in operating our business.
For more information
on our non-GAAP financial measures and a reconciliation of GAAP to non-GAAP measures, please refer to "Reconciliation of GAAP
to Non-GAAP Results" table in this press release.
Reconciliation of GAAP measures to Non-GAAP
| Three months Ended | ||||
| June 30, 2023 | ||||
| Net cash generated from operating activities | 13,634 | |||
| Less: | ||||
| Taxes | (2,384 | ) | ||
| Investments in PPE and Intangibles | (4,512 | ) | ||
| Free Cash Flow before acquisition | 6,738 | |||
| Less: | ||||
| Acquisitions related pay-out | (7,640 | ) | ||
| Free Cash Flow | (902 | ) |
| Quarter Ended | ||||
| June 30, 2023 | ||||
| Inventories | 52,398 | |||
| Trade Receivables | 77,095 | |||
| Less: | ||||
| Trade Payables | (27,682 | ) | ||
| Operating Working Capital | 101,811 |
| Quarter Ended | ||||
| June 30, 2023 | ||||
| Cash and cash equivalents | 7,228 | |||
| Investments | 53,934 | |||
| Short-term borrowings | (6,468 | ) | ||
| Long-term borrowings, non-current | (4,930 | ) | ||
| Less: | ||||
| Restricted cash balance - Unclaimed dividend | 84 | |||
| Lease liabilities (included in Long-term borrowings, non-current) | (1,130 | ) | ||
| Equity Investments (included in Investments) | 957 | |||
| Net Cash Surplus | 49,853 |
Return on Capital Employed
| Year Ended | ||||
| June 30, 2023 | ||||
| Profit before tax | 18,463 | |||
| Less: | ||||
| Interest and Investment Income (Excluding forex gain/loss) | 685 | |||
| Earnings Before Interest and taxes [A] | 17,778 | |||
| Average Capital Employed [B] | 1,84,327 | |||
| Return on Capital Employed (A/B) (Ratio) | 38.6 | % |
Computation of capital employed
| Year Ended June 30, | Year Ended March 31, | |||||||
| 2023 | 2023 | |||||||
| Property Plant and Equipment | 67,207 | 66,462 | ||||||
| Intangibles | 38,068 | 30,849 | ||||||
| Goodwill | 4,238 | 4,245 | ||||||
| Investment in equity accounted associates | 4,002 | 4,702 | ||||||
| Other Current Assets | 18,511 | 20069 | ||||||
| Other investments | 902 | 660 | ||||||
| Other non-current assets | 821 | 800 | ||||||
| Inventories | 52,398 | 48,670 | ||||||
| Trade Receivables | 77,095 | 72,485 | ||||||
| Derivative Financial Instruments | 1,760 | 1,095 | ||||||
| Less: | ||||||||
| Other Liabilities | 38,973 | 42,320 | ||||||
| Provisions | 5,451 | 5,513 | ||||||
| Trade payables | 27,682 | 26,444 | ||||||
| Operating Capital Employed | 1,92,896 | 1,75,760 | ||||||
| Average Capital Employed | 1,84,327 |
Computation of EBITDA
Refer page no. 2 for EBITDA computations.
Earnings Call Details (07:30 pm IST,
10:00 am EDT, July 26, 2023)
The management of the Company will host
an Earnings call to discuss the Company's financial performance and answer any questions from the participants.
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 Aug 2nd, 2023. For play back dial in phone No: +91 22 7194 5757, and Playback Code
Transcript: Transcript of the Earnings
call will be available on the Company's website: www.drreddys.com
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.
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, 2023. The company assumes no obligation to update any information contained herein."