Full Press Release Details
| CONTACT | ||
| Investor relationS | Media relationS | |
| DR. REDDY'S LABORATORIES LTD. 8-2-337, Road No. 3, Banjara Hills, Hyderabad - 500034. Telangana, India. | AMIT AGARWAL amita@drreddys.com (Ph: +91-40-4900 2135) | MITALI SARKAR mitali.sarkar@drreddys.com (Ph: +91-40-4900 2121) |
Reddy's Q1 FY20 Financial Results
Hyderabad, India, July 29, 2019: Dr. Reddy's Laboratories
Ltd. (BSE: 500124 | NSE: DRREDDY | NYSE: RDY) today announced its consolidated financial results for the quarter ended June 30,
2019 under International Financial Reporting Standards (IFRS).
| Revenues | Rs. 3,844 Cr [YoY: 3% Up, QoQ: 4% Dc] | |
| Gross Margin | 51.7% [Q1 FY19: 55.7%; Q4 FY19: 52.4%] | |
| SG&A expenses | Rs. 1,207 Cr [YoY: Flat; QoQ: 3% Dc] | |
| R&D expenses | Rs. 361 Cr [9.4% of Revenues] | |
| Profit before Tax | Rs. 850 Cr [ 22.1% of Revenues] | |
| Profit after Tax | Rs. 663 Cr [17.2% of Revenues] |
Commenting on the results, CEO and Co-chairman, GV Prasad
said "This quarter, we grew in most of our key markets and hope to continue this momentum with a sharper focus on performance.
We will continue our journey of operational excellence, cost leadership and innovation across our businesses".
Dr. Reddy's Laboratories Limited
Consolidated Income Statement
| Q1 FY20 | Q1 FY19 | YoY | Q4 FY19 | QoQ | ||||||||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | Gr % | ($) | (Rs.) | Gr% | ||||||||||||||||||||||||
| Revenues | 558 | 38,435 | 540 | 37,207 | 3 | 583 | 40,166 | (4 | ) | |||||||||||||||||||||||
| Cost of Revenues | 270 | 18,576 | 239 | 16,479 | 13 | 277 | 19,113 | (3 | ) | |||||||||||||||||||||||
| Gross Profit | 288 | 19,859 | 301 | 20,728 | (4 | ) | 305 | 21,053 | (6 | ) | ||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||
| Selling, General & Administrative expenses | 175 | 12,065 | 176 | 12,106 | (0 | ) | 180 | 12,376 | (3 | ) | ||||||||||||||||||||||
| Research and Development expenses | 52 | 3,609 | 60 | 4,157 | (13 | ) | 53 | 3,662 | (1 | ) | ||||||||||||||||||||||
| Other operating (income) | (55 | ) | (3,759 | ) | (4 | ) | (303 | ) | 1141 | (5 | ) | (330 | ) | 1038 | ||||||||||||||||||
| Results from operating activities | 115 | 7,944 | 69 | 4,768 | 67 | 78 | 5,345 | 49 | ||||||||||||||||||||||||
| Net finance (income) | (6 | ) | (393 | ) | (2 | ) | (156 | ) | 152 | (5 | ) | (349 | ) | 13 | ||||||||||||||||||
| Share of (profit) / loss of equity accounted investees | (2 | ) | (163 | ) | (1 | ) | (83 | ) | 96 | (2 | ) | (157 | ) | 4 | ||||||||||||||||||
| Profit before income tax | 123 | 8,500 | 73 | 5,007 | 70 | 85 | 5,851 | 45 | ||||||||||||||||||||||||
| Income tax expense | 27 | 1,872 | 6 | 446 | 320 | 22 | 1,507 | 24 | ||||||||||||||||||||||||
| Profit for the period | 96 | 6,628 | 66 | 4,561 | 45 | 63 | 4,344 | 53 | ||||||||||||||||||||||||
| - | - | - | ||||||||||||||||||||||||||||||
| Diluted Earnings Per Share (EPS) | 0.58 | 39.91 | 0.40 | 27.45 | 45 | 0.38 | 26.16 | 53 |
| As % to Revenues | Q1 FY20 | Q1 FY19 | Q4 FY19 | |||||||||
| Gross Profit | 51.7 | 55.7 | 52.4 | |||||||||
| SG&A | 31.4 | 32.5 | 30.8 | |||||||||
| R&D | 9.4 | 11.2 | 9.1 | |||||||||
| EBITDA | 29.5 | 21.7 | 22.0 | |||||||||
| PBT | 22.1 | 13.5 | 14.6 | |||||||||
| PAT | 17.2 | 12.3 | 10.8 |
| Q1 FY20 | Q1 FY19 | Q4 FY19 | ||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | ||||||||||||||||||
| Profit before Income Tax | 123 | 8,500 | 73 | 5,007 | 85 | 5,851 | ||||||||||||||||||
| Interest (income) net* | (3 | ) | (239 | ) | (1 | ) | (46 | ) | (3 | ) | (215 | ) | ||||||||||||
| Depreciation # | 31 | 2,124 | 32 | 2,214 | 31 | 2,136 | ||||||||||||||||||
| Amortization # | 14 | 958 | 13 | 896 | 15 | 1,047 | ||||||||||||||||||
| EBITDA | 165 | 11,343 | 117 | 8,071 | 128 | 8,819 |
Key Balance Sheet Items
| As on 30 th June, 2019 | As on 31st March, 2019 | As on 30 th June, 2018 | ||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | ||||||||||||||||||
| Cash and cash equivalents and other investments | 413 | 28,439 | 371 | 25,570 | 247 | 17,047 | ||||||||||||||||||
| Trade receivables (current & non-current) | 551 | 37,961 | 580 | 39,982 | 698 | 48,095 | ||||||||||||||||||
| Inventories | 510 | 35,137 | 487 | 33,579 | 457 | 31,498 | ||||||||||||||||||
| Property, plant and equipment | 785 | 54,083 | 785 | 54,088 | 827 | 57,020 | ||||||||||||||||||
| Goodwill and Other Intangible assets | 694 | 47,821 | 700 | 48,269 | 715 | 49,289 | ||||||||||||||||||
| Loans and borrowings (current & non-current) | 499 | 34,387 | 557 | 38,381 | 787 | 54,273 | ||||||||||||||||||
| Trade payables | 215 | 14,842 | 211 | 14,553 | 215 | 14,816 | ||||||||||||||||||
| Equity | 2,121 | 1,46,208 | 2,034 | 1,40,197 | 1,892 | 1,30,430 |
Revenue Mix by Segment
| Q1 FY20 | Q1 FY19 | YoY | Q4 FY19 | QoQ | ||||||||||||||||
| Particulars | (Rs.) | (Rs.) | Growth % | (Rs.) | Growth % | |||||||||||||||
| Global Generics | 32,982 | 30,636 | 8 | 30,384 | 9 | |||||||||||||||
| North America | 16,322 | 15,903 | 3 | 14,957 | 9 | |||||||||||||||
| Europe | 2,404 | 2,016 | 19 | 1,912 | 26 | |||||||||||||||
| India | 6,960 | 6,074 | 15 | 6,505 | 7 | |||||||||||||||
| Emerging Markets | 7,296 | 6,643 | 10 | 7,010 | 4 | |||||||||||||||
| Pharmaceutical Services and Active Ingredients (PSAI) | 4,539 | 5,409 | (16 | ) | 6,765 | (33 | ) | |||||||||||||
| Proprietary Products & Others | 914 | 1,162 | (21 | ) | 3,017 | (70 | ) | |||||||||||||
| Total | 38,435 | 37,207 | 3 | 40,166 | (4 | ) |
Global Generics (GG)
Revenues from GG segment
at Rs. 33.0 billion. Year-on-year growth of 8%, primarily driven by Emerging Markets, India and Europe. Sequential growth is 9%.
As of 30th June 2019,
cumulatively 107 generic filings are pending for approval with the USFDA (104 ANDAs and 3 NDAs under 505(b)(2) route). Of these
104 ANDAs, 58 are Para IVs out of which we believe 34 have First to File' status.
Pharmaceutical Services and Active Ingredients (PSAI)
Proprietary Products (PP)
Income Statement Highlights:
Organizational Update:
With effect from August 1, 2019, Erez Israeli
will be elevated as Chief Executive Officer (CEO) of Dr. Reddy's Laboratories Limited. GV Prasad will continue as the Co-Chairman
and Managing Director and Erez Israeli will continue to report to him.
Since joining Dr. Reddy's as Chief
Operating Officer (COO) in April 2018, Erez has spear-headed the transformation agenda of the organization by ensuring clear focus
and strategy, setting foundations for a sustainable financial growth and leading business delivery. His appointment will help to
propel the organization's growth agenda forward.
Earnings Call Details (06:30 pm IST, 09:00 am EDT, July 29,
The Company will host an earnings call to discuss
the performance and answer any questions from participants.
Audio conference Participants can dial-in on the
| Universal Access Number: | +91 22 6280 1219 |
| Secondary number: | +91 22 7115 8120 |
| Local Access number: | +91 70456 71221 |
| (Available all over India) |
| International Toll Free Number | USA | 1 866 746 2133 |
| UK | 0 808 101 1573 | |
| Singapore | 800 101 2045 | |
| Hong Kong | 800 964 448 |
| Playback of call: | +91 22 7194 5757, +91 22 6663 5757 |
| Conference ID: | 20718 |
Transcript of the event will be available at www.drreddys.com.
Playback will be available for a few days.
About Dr. Reddy's: Dr.
Reddy's Laboratories Ltd. (BSE: 500124, NSE: DRREDDY, NYSE: RDY) 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
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 reorganisation , including related integration issues.
The company assumes no obligation to update
any information contained herein.