SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE
13A-16 OR 15D-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
July 2024
Commission File
Number 1-15182
DR.
REDDY’S LABORATORIES LIMITED
(Translation of registrant’s name into English)
8-2-337, Road No. 3, Banjara Hills
Hyderabad, Telangana 500 034, India
+91-40-49002900
______________
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form
20-F x Form
40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(1): ______
Yes
¨ No
x
Note: Regulation S-T Rule 101(b)(1) only permits the submission
in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(7): ______
Yes
¨ No
x
Note: Regulation S-T Rule 101(b)(7) only permits the submission
in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and
make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s
“home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as
long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s
security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing
on EDGAR.
Indicate by check mark whether by furnishing the information
contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.
Yes
¨ No
x
If “Yes” is marked, indicate below the file number assigned
to registrant in connection with Rule 12g3-2(b): 82-________.
DISCLOSURE OF RESULTS OF OPERATIONS AND FINANCIAL
CONDITION
We hereby furnish the United States Securities and
Exchange Commission with copies of the following information about our public disclosures regarding our results of operations and financial
condition for the quarter ended June 30, 2024.
On July 27, 2024, we announced our results of operations
for the quarter ended June 30, 2024. We issued a press release announcing our results under International Financial Reporting Standards
(“IFRS”), IFRS Unaudited Consolidated Financial Results, Ind AS Unaudited Consolidated Financial Results with Limited Review
report and Ind AS Unaudited Standalone Financial Results with Limited Review report for the quarter ended June 30, 2024, a copy of which
is attached to this Form 6-K as Exhibit 99.1 , 99.2 , 99.3 and 99.4 respectively.
We have also made available to the public on our web
site, www.drreddys.com, the following: IFRS Unaudited Consolidated Financial Results, Ind AS Unaudited Consolidated Financial Results
and Ind AS Unaudited Standalone Financial Results for the quarter ended June 30, 2024.
Exhibits
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
|
DR. REDDY’S LABORATORIES LIMITED
(Registrant) |
|
|
|
Date: July 27, 2024 |
By: |
/s/ K Randhir Singh |
|
|
Name: |
K Randhir Singh |
|
|
Title: |
Company Secretary & Compliance Officer |
Exhibit 99.1
![](https://www.sec.gov/Archives/edgar/data/1135951/000157587224000833/drr0646_ex99-1img01.jpg)
|
CONTACT |
DR.
REDDY'S LABORATORIES LTD. |
Investor
relationS |
Media
relationS |
8-2-337,
Road No. 3, Banjara Hills,
Hyderabad - 500034.
Telangana, India. |
Richa
Periwal
AISHWARYA
SITHARAM |
richaperiwal@drreddys.com
aishwaryasitharam@drreddys.com |
USHA
IYER
ushaiyer@drreddys.com |
|
Dr.
Reddy’s Q1FY25 Financial Results
Hyderabad,
India, July 27, 2024: 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, 2024. The information mentioned in this release is based on consolidated
financial statements under International Financial Reporting Standards (IFRS).
Q1FY25 |
|
|
Revenues |
₹
76,727 Mn
[Ut:
14% YoY; 8% QoQ] |
|
|
Gross Margin |
60.4%
[Q1FY24:
58.7%; Q4FY24: 58.6%] |
|
|
SG&A
Expenses |
₹
22,691 Mn
[Up:
28% YoY; 11% QoQ] |
|
|
R&D
Expenses |
₹
6,193 Mn
[8.1%
of Revenues] |
|
|
EBITDA |
₹
21,599 Mn
[28.2%
of Revenues] |
|
|
Profit
before Tax |
₹
18,821 Mn
[Up:
2% YoY; 18% QoQ] |
|
|
Profit
after Tax |
₹
13,920 Mn
[Down: 1%
YoY; Up: 7% QoQ] |
Commenting
on the results, Co-Chairman & MD, G V Prasad said: “We had a good start to the new fiscal year and our growth
& profitability was mainly driven by our generics business. We continue to strengthen our core businesses and have made strategic
investments in biologics, consumer healthcare and innovation to drive patient impact and value creation.”
All
amounts in millions, except EPS |
All
US dollar amounts based on convenience translation rate of 1 USD = ₹ 83.33 |
Dr. Reddy’s
Laboratories Limited & Subsidiaries
Revenue Mix by
Segment for the quarter
| |
Q1FY25 | | |
Q1FY24 | | |
YoY | | |
Q4FY24 | | |
QoQ | |
Particulars | |
(₹) | | |
(₹) | | |
Gr
% | | |
(₹) | | |
Gr% | |
Global Generics | |
| 68,858 | | |
| 60,083 | | |
| 15 | | |
| 61,191 | | |
| 13 | % |
North America | |
| 38,462 | | |
| 32,002 | | |
| 20 | | |
| 32,626 | | |
| 18 | % |
Europe | |
| 5,265 | | |
| 5,047 | | |
| 4 | | |
| 5,208 | | |
| 1 | % |
India | |
| 13,252 | | |
| 11,482 | | |
| 15 | | |
| 11,265 | | |
| 18 | % |
Emerging Markets | |
| 11,878 | | |
| 11,552 | | |
| 3 | | |
| 12,091 | | |
| (2 | %) |
Pharmaceutical Services
and Active Ingredients (PSAI) | |
| 7,657 | | |
| 6,709 | | |
| 14 | | |
| 8,219 | | |
| (7 | %) |
Others | |
| 212 | | |
| 592 | | |
| (64 | ) | |
| 1,420 | | |
| (85 | %) |
Total | |
| 76,727 | | |
| 67,384 | | |
| 14 | | |
| 70,830 | | |
| 8 | % |
Consolidated Income
Statement for the quarter
Particulars |
|
Q1FY25 |
|
|
Q1FY24 |
|
|
YoY |
|
|
Q4FY24 |
|
|
QoQ |
|
|
|
($) |
|
|
(₹) |
|
|
($) |
|
|
(₹) |
|
|
Gr% |
|
|
($) |
|
|
(₹) |
|
|
Gr% |
|
Revenues |
|
|
921 |
|
|
|
76,727 |
|
|
|
809 |
|
|
|
67,384 |
|
|
|
14 |
|
|
|
850 |
|
|
|
70,830 |
|
|
|
8 |
|
Cost of Revenues |
|
|
365 |
|
|
|
30,383 |
|
|
|
334 |
|
|
|
27,831 |
|
|
|
9 |
|
|
|
352 |
|
|
|
29,347 |
|
|
|
4 |
|
Gross Profit |
|
|
556 |
|
|
|
46,344 |
|
|
|
475 |
|
|
|
39,553 |
|
|
|
17 |
|
|
|
498 |
|
|
|
41,483 |
|
|
|
12 |
|
% of Revenues |
|
|
|
|
|
|
60.4% |
|
|
|
|
|
|
|
58.7% |
|
|
|
|
|
|
|
|
|
|
|
58.6% |
|
|
|
|
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, General & Administrative Expenses |
|
|
272 |
|
|
|
22,691 |
|
|
|
212 |
|
|
|
17,702 |
|
|
|
28 |
|
|
|
246 |
|
|
|
20,476 |
|
|
|
11 |
|
% of Revenues |
|
|
|
|
|
|
29.6% |
|
|
|
|
|
|
|
26.3% |
|
|
|
|
|
|
|
|
|
|
|
28.9% |
|
|
|
|
|
Research & Development Expenses |
|
|
74 |
|
|
|
6,193 |
|
|
|
60 |
|
|
|
4,984 |
|
|
|
24 |
|
|
|
83 |
|
|
|
6,877 |
|
|
|
(10 |
) |
% of Revenues |
|
|
|
|
|
|
8.1% |
|
|
|
|
|
|
|
7.4% |
|
|
|
|
|
|
|
|
|
|
|
9.7% |
|
|
|
|
|
Impairment of Non-Current Assets, net |
|
|
0 |
|
|
|
5 |
|
|
|
0 |
|
|
|
11 |
|
|
|
(55 |
) |
|
|
(2 |
) |
|
|
(173 |
) |
|
|
(103 |
) |
Other Operating (Income)/Expense |
|
|
(6 |
) |
|
|
(470 |
) |
|
|
(9 |
) |
|
|
(780 |
) |
|
|
(40 |
) |
|
|
(8 |
) |
|
|
(656 |
) |
|
|
(28 |
) |
Results from Operating Activities |
|
|
215 |
|
|
|
17,925 |
|
|
|
212 |
|
|
|
17,636 |
|
|
|
2 |
|
|
|
180 |
|
|
|
14,959 |
|
|
|
20 |
|
Finance (Income)/Expense, net |
|
|
(10 |
) |
|
|
(837 |
) |
|
|
(9 |
) |
|
|
(784 |
) |
|
|
7 |
|
|
|
(12 |
) |
|
|
(1022 |
) |
|
|
(18 |
) |
Share of Profit of Equity Accounted Investees, net of tax |
|
|
(1 |
) |
|
|
(59 |
) |
|
|
(1 |
) |
|
|
(43 |
) |
|
|
37 |
|
|
|
(0 |
) |
|
|
(35 |
) |
|
|
69 |
|
Profit before Income Tax |
|
|
226 |
|
|
|
18,821 |
|
|
|
222 |
|
|
|
18,463 |
|
|
|
2 |
|
|
|
192 |
|
|
|
16,016 |
|
|
|
18 |
|
% of Revenues |
|
|
|
|
|
|
24.5% |
|
|
|
|
|
|
|
27.4% |
|
|
|
|
|
|
|
|
|
|
|
22.6% |
|
|
|
|
|
Income Tax Expense |
|
|
59 |
|
|
|
4,901 |
|
|
|
53 |
|
|
|
4,438 |
|
|
|
10 |
|
|
|
35 |
|
|
|
2,946 |
|
|
|
66 |
|
Profit for the Period |
|
|
167 |
|
|
|
13,920 |
|
|
|
168 |
|
|
|
14,025 |
|
|
|
(1 |
) |
|
|
157 |
|
|
|
13,070 |
|
|
|
7 |
|
% of Revenues |
|
|
|
|
|
|
18.1% |
|
|
|
|
|
|
|
20.8% |
|
|
|
|
|
|
|
|
|
|
|
18.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings per Share (EPS) |
|
|
1.00 |
|
|
|
83.46 |
|
|
|
1.01 |
|
|
|
84.22 |
|
|
|
(1 |
) |
|
|
0.94 |
|
|
|
78.35 |
|
|
|
7 |
|
EBITDA Computation
for the quarter
Particulars | |
Q1FY25 | | |
Q1FY24 | | |
Q4FY24 | |
| |
($) | | |
(₹) | | |
($) | | |
(₹) | | |
($) | | |
(₹) | |
Profit before Income Tax | |
| 226 | | |
| 18,821 | | |
| 222 | | |
| 18,463 | | |
| 192 | | |
| 16,016 | |
Interest (Income) / Expense, net* | |
| (12 | ) | |
| (1,037 | ) | |
| (8 | ) | |
| (685 | ) | |
| (10 | ) | |
| (835 | ) |
Depreciation | |
| 30 | | |
| 2,508 | | |
| 27 | | |
| 2,281 | | |
| 29 | | |
| 2,421 | |
Amortization | |
| 16 | | |
| 1,302 | | |
| 16 | | |
| 1,302 | | |
| 15 | | |
| 1,291 | |
Impairment | |
| 0 | | |
| 5 | | |
| 0 | | |
| 11 | | |
| (2 | ) | |
| (173 | ) |
EBITDA | |
| 259 | | |
| 21,599 | | |
| 256 | | |
| 21,372 | | |
| 225 | | |
| 18,720 | |
% of Revenues | |
| | | |
| 28.2% | | |
| | | |
| 31.7% | | |
| | | |
| 26.4% | |
*Includes Income from
Investment
Key Balance Sheet
Items
Particulars | |
As
on 30th Jun 2024 | | |
As
on 31st Mar 2024 | | |
As
on 30th Jun 2023 | |
| |
| ($) | | |
| (₹) | | |
| ($) | | |
| (₹) | | |
| ($) | | |
| (₹) | |
Cash and Cash Equivalents and Other Investments | |
| 1,147 | | |
| 95,599 | | |
| 990 | | |
| 82,529 | | |
| 734 | | |
| 61,162 | |
Trade Receivables | |
| 973 | | |
| 81,088 | | |
| 964 | | |
| 80,298 | | |
| 925 | | |
| 77,095 | |
Inventories | |
| 823 | | |
| 68,568 | | |
| 763 | | |
| 63,552 | | |
| 629 | | |
| 52,398 | |
Property, Plant, and Equipment | |
| 964 | | |
| 80,343 | | |
| 923 | | |
| 76,886 | | |
| 807 | | |
| 67,207 | |
Goodwill and Other Intangible Assets | |
| 497 | | |
| 41,374 | | |
| 494 | | |
| 41,204 | | |
| 508 | | |
| 42,306 | |
Loans and Borrowings (Current & Non-Current) | |
| 368 | | |
| 30,675 | | |
| 240 | | |
| 20,020 | | |
| 150 | | |
| 12,520 | |
Trade Payables | |
| 409 | | |
| 34,109 | | |
| 371 | | |
| 30,919 | | |
| 332 | | |
| 27,682 | |
Equity | |
| 3,536 | | |
| 2,94,627 | | |
| 3,367 | | |
| 2,80,550 | | |
| 2,943 | | |
| 2,45,259 | |
Key Business Highlights
| · | Acquired Nicotinell® and related brands in the Nicotine Replacement Therapy category
in markets outside the US from Haleon plc for a total consideration of GBP 500 million, with an upfront cash payment of GBP 458 million
and performance-based contingent payments of up to GBP 42 million, payable in 2025 and 2026. The transaction is expected to close in early
Q4 of calendar year 2024. |
| · | Entered into a joint venture agreement with Nestlé India to bring science-backed
nutritional portfolio to more consumers in India. The JV is expected to become operational in Q2FY25. |
| · | Partnered with Novartis Pharma LLC to distribute two of their leading anti-diabetes brands, Galvus®
and Galvus Met®, in the Russian retail market. |
| · | Received exclusive rights from Ingenus Pharmaceuticals to commercialize Cyclophosphamide Injection
in the US. |
| · | Collaborated with Alvotech for commercialization of their denosumab biosimilar candidate in the
US on an exclusive basis, as well as in Europe and UK. |
| · | Launched drug-free migraine management device, Nerivio®, in Germany, Spain, UK and
South Africa. |
| · | Inaugurated a 70,000 sq.ft. state-of-the-art Biologics facility of Aurigene Pharmaceutical
Services in Genome Valley, Hyderabad, India. The process and analytical development laboratories are operational while the commissioning
of manufacturing capacity will be completed in 2024. |
ESG & other Updates
| · | Only Indian Pharma Company which featured in the 2024 list of Global 500 Most Sustainable Companies
by Time Magazine and Statista. |
| · | Named ‘Asia-Pacific Climate Leader’ by Financial Times for the second consecutive year
in 2024, scoring the highest amongst Indian Pharma peers. |
| · | Won the 'Masters of Risk’ award in ‘Healthcare and Pharma' at the India Risk Management
Awards. |
| · | Improved FTSE Russel’s ESG Score from 3.9 to 4.2 out of 5. |
| · | Received a Form 483 with two observations after the USFDA completed a routine GMP inspection
at two of our formulations manufacturing facilities in Duvvada, Visakhapatnam. |
| · | Received a Form 483 with four observations after the USFDA completed a GMP inspection at
our API manufacturing facility in Srikakulam, Andhra Pradesh. |
Revenue Analysis
| · | Q1FY25 consolidated revenues at ₹ 76.7 billion, YoY growth of 14% and QoQ growth of 8%. The
growth was largely driven by growth in global generics revenues in North America as well as India. |
Global Generics (GG)
| · | Q1FY25 revenues at ₹ 68.9 billion, YoY growth of 15% and QoQ growth of 13%. YoY growth was primarily volume led, aided
by new launches and integration of recently in-licensed vaccine portfolio in India, partially offset by price erosion. Sequential growth
was due to change in product mix partly offset with adverse price erosion. |
North America
| · | Q1FY25 revenues at ₹ 38.5 billion, YoY growth of 20% and QoQ growth of 18%. Our growth was
largely on account of increase in volumes of our base business, contribution from new launches, partly offset by price erosion. |
| · | During the quarter, we launched 3 new products in the U.S. |
| · | During the quarter, we filed one new Abbreviated New Drug Application (ANDA) with the U.S. FDA. As of
June 30, 2024, 80 generic filings were approvals pending from the U.S. FDA. These comprise of 75 ANDAs and five New Drug Applications
(NDAs) filed under the Section 505(b)(2) route of the US Federal Food, Drug, and Cosmetic Act. Of the 75 ANDAs, 45 are Paragraph IV applications,
and we believe that 23 of these have the ‘First to File’ status. |
Europe
| · | Q1FY25 revenues at ₹ 5.3 billion, YoY growth of 4% and sequential growth of 1%. Growth was primarily on account of improvement
in base business volumes, new product launches, partly offset by price erosion. |
| o | Germany at ₹ 2.8 billion, YoY growth of 14% and QoQ decline
of 1%. |
| o | UK at ₹ 1.6 billion, YoY decline of 7% and QoQ growth of 5%. |
| o | Rest of Europe at ₹ 0.9 billion, YoY growth of 1% and flat
QoQ. |
| · | During the quarter, we launched 12 new products across various countries
in the region. |
India
| · | Q1FY25 revenues at ₹ 13.3 billion, YoY growth of 15% and QoQ growth of 18%. YoY growth was
mainly on account of new product launches including the recently in-licensed vaccine portfolio. As per IQVIA, our IPM rank was at 10 for
the quarter. |
| · | During the quarter, we launched 13 new brands in the country, in addition to exclusive
rights to promote and distribute Sanofi’s vaccine brands. |
Emerging Markets
| · | Q1FY25 revenues at ₹ 11.9 billion, YoY growth of 3% and QoQ
decline of 2%. YoY growth is attributable to market share expansion and new product launches, partly
offset by unfavorable forex and price erosion. |
| o | Revenues from Russia at ₹ 5.5 billion, YoY decline of 2% and QoQ growth of 11%. |
| - | YoY decline was majorly due to unfavorable currency exchange rate movements, partially offset by price increases and higher base business
volumes. |
| - | QoQ growth was driven by increase in base business volumes. |
| o | Revenues from other Commonwealth of Independent States (CIS) countries and Romania at ₹ 1.9 billion, decline of 2% YoY
and 11% QoQ. |
| - | YoY decline was primarily on account of decline in base business volumes, partly offset by increase in prices. |
| - | QoQ decline was driven by decline in base business volumes. |
| o | Revenues from Rest of World (RoW) territories at ₹ 4.4 billion, growth of 11% YoY and a decline of 11% QoQ. |
| - | YoY growth was largely attributable to increase in volumes of base business, contribution from new products,
partly offset by price erosion. |
| - | QoQ decline was primarily driven by decline in base business volumes and erosion. |
| · | During the quarter, we launched 17 new products across various countries in the region. |
Pharmaceutical Services and Active Ingredients
(PSAI)
| · | Q1FY25 revenues at ₹ 7.7 billion, with a growth of 14% YoY and a decline of 7% QoQ. YoY
growth was mainly driven by improved volumes in base business, and contribution from new products, QoQ decline was driven by decrease
in volumes of certain existing products. |
| · | During the quarter, we filed 11 Drug Master Files (DMFs) globally. |
Income Statement Highlights:
Gross Margin
| · | Q1FY25 at 60.4% (GG: 64.7%, PSAI: 23.1%), an increase of 170 basis
points (bps) over previous year and 183 bps sequentially. The increase is on account of favourable product mix and overhead leverage,
partially offset by price erosion in generics markets. |
Selling, General & Administrative (SG&A)
Expenses
| · | Q1FY25 at ₹ 22.7 billion, YoY increase of 28% and 11% QoQ. |
The increase is primarily on account
of investment in new business initiatives, higher freight costs, business integration costs, annual merit increases, and building commercial
capabilities to enhance operational efficiencies.
Research & Development (R&D) Expenses
| · | Q1FY25 at ₹ 6.2 billion. As % to Revenues – Q1FY25: 8.1% | Q1FY24: 7.4% | Q4FY24: 9.7%. |
R&D investments is reflecting our biosimilars
pipeline, development efforts across generics as well as our novel oncology assets, which will support future growth.
Other Operating Income
| · | Q1FY25 at ₹ 0.5 billion as compared to ₹ 0.8 billion in Q1FY24. |
Net Finance Income
| · | Q1FY25 at ₹0.8 billion compared to ₹ 0.8 billion in Q1FY24. |
Profit before Tax
| · | Q1FY25 at ₹ 18.8 billion, a YoY growth of 2% and a QoQ growth of 18%. |
As % to Revenues – Q1FY25:
24.5% | Q1FY24: 27.4% | Q4FY24: 22.6%.
Profit after Tax
| · | Q1FY25 at ₹ 13.9 billion, a YoY decline of 1% and a QoQ growth of 7%. |
As % to Revenues – Q1FY25:
18.1% | Q1FY24: 20.8% | Q4FY24: 18.5%.
The Effective Tax Rate (ETR) for the quarter
was 26.0% as compared to 24.0% in Q1FY24.
Diluted Earnings per Share (EPS)
Other Highlights:
Earnings before Interest, Tax, Depreciation
and Amortization (EBITDA)
| · | Q1FY25 at ₹ 21.6 billion, YoY growth of 1% and QoQ growth of 15%. |
As % to Revenues – Q1FY25: 28.2% |
Q1FY24: 31.7% | Q4FY24: 26.4%.
Others:
| · | Operating Working Capital: As on 30th June 2024 at ₹ 115.5 billion. |
| · | Capital Expenditure: Q1FY25 at ₹ 4.9 billion. |
| · | Free Cash Flow: Q1FY25 at ₹ 2.3 billion. |
| · | Net Cash Surplus: As on 30th June 2024 at ₹ 67.3 billion |
| · | Debt to Equity: As on 30th June 2024 is (0.23) |
| · | RoCE: Q1FY25 annualized at 33%. |
About key metrics and non-GAAP Financial Measures
This press release 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 from the most directly comparable financial measure calculated
and presented in accordance with IFRS.
The presentation of 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.
All amounts in millions, except EPS
Reconciliation of GAAP Measures to Non-GAAP Measures
Operating Working Capital
| |
As on 30th Jun 2024 | |
Particulars | |
(₹) | |
Inventories | |
| 68,568 | |
Trade Receivables | |
| 81,088 | |
Less: | |
| | |
Trade Payables | |
| 34,109 | |
Operating Working Capital | |
| 115,547 | |
Free Cash Flow
| |
Three months ended 30th Jun 2024 | |
Particulars | |
(₹) | |
Net cash generated from operating activities | |
| 10,027 | |
Less: | |
| | |
Taxes | |
| (1,531 | ) |
Investments in Property, Plant & Equipment, and Intangibles | |
| (6,224 | ) |
Free Cash Flow | |
| 2,272 | |
Net Cash Surplus and Debt to Equity
| |
As
on 30th
Jun 2024 | |
Particulars | |
(₹) | |
Cash and Cash Equivalents | |
| 4,913 | |
Investments | |
| 90,686 | |
Short-term Borrowings | |
| (23,165 | ) |
Long-term Borrowings, Non-Current | |
| (6,229 | ) |
Less: | |
| | |
Restricted Cash Balance – Unclaimed Dividend | |
| 155 | |
Lease liabilities (included in Long-term Borrowings, Non-Current) | |
| (2,429 | ) |
Equity Investments (Included in Investments) | |
| 1,174 | |
Net Cash Surplus | |
| 67,305 | |
Equity | |
| 2,94,628 | |
Net Debt/Equity | |
| (0.23 | ) |
Computation of Return on Capital Employed
| |
As on 30th Jun 2024 | |
Particulars | |
(₹) | |
Profit before Tax | |
| 18,821 | |
Less: | |
| | |
Interest and Investment Income (Excluding forex gain/loss) | |
| 1,037 | |
Earnings Before Interest and taxes [A] | |
| 17,784 | |
| |
| | |
Average Capital Employed [B] | |
| 215,327 | |
| |
| | |
Annualised Return on Capital Employed (A/B) | |
| 33 | % |
Computation of Capital Employed:
| |
As on | |
Particulars | |
30th Jun, 2024 | | |
31st Mar, 2024 | |
Property Plant and Equipment | |
| 80,343 | | |
| 76,886 | |
Intangibles | |
| 37,131 | | |
| 36,951 | |
Goodwill | |
| 4,243 | | |
| 4,253 | |
Investment in Equity Accounted Associates | |
| 4,236 | | |
| 4,196 | |
Other Current Assets | |
| 24,483 | | |
| 22,560 | |
Other Investments | |
| 973 | | |
| 1,059 | |
Other Non-Current Assets | |
| 1,659 | | |
| 1,632 | |
Inventories | |
| 68,568 | | |
| 63,552 | |
Trade Receivables | |
| 81,088 | | |
| 80,298 | |
Derivative Financial Instruments | |
| 91 | | |
| (299 | ) |
Less: | |
| | | |
| | |
Other Liabilities | |
| 40,379 | | |
| 46,866 | |
Provisions | |
| 5,532 | | |
| 5,444 | |
Trade payables | |
| 34,109 | | |
| 30,919 | |
Operating Capital Employed | |
| 222,795 | | |
| 207,859 | |
Average Capital Employed | |
| 215,327 | |
Computation of EBITDA
Refer page no. 3.
Earnings Call Details
The management of the Company will host an Earnings call to discuss the
Company’s financial performance and answer any questions from the participants.
Date: Saturday, July 27, 2024
Time: 16:30 pm IST | 07:00 am ET
Conference Joining Information |
Option 1: Pre-register with the below link and join without waiting for the operator |
https://services.choruscall.in/DiamondPassRegistration/register?confirmationNumber=9959258&linkSecurityString=3f1c80877a |
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, 2024. For play back dial in phone No: +91 22 7194 5757, and Playback Code is 57537.
Audio and Transcript: Audio and 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 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 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, 2024. The company assumes no obligation to update any information
contained herein.” The company assumes no obligation to update any information contained herein.
Exhibit 99.2
![](https://www.sec.gov/Archives/edgar/data/1135951/000157587224000833/drr0646_ex99-2img01.jpg) |
Dr. Reddys Laboratories Ltd.
8-2-337, Road No. 3, Banjara Hills,
Hyderabad - 500 034, Telangana,
India.
CIN : L85195TG1984PLC004507
Tel : +91 40 4900 2900
Fax : +91 40 4900 2999
Email : mail@drreddys.com
www.drreddys.com |
DR. REDDY'S LABORATORIES LIMITED
Unaudited consolidated financial results of Dr. Reddy's Laboratories
Limited and its subsidiaries for the quarter ended 30 June 2024 prepared in accordance with International Financial Reporting Standards
(IFRS) as issued by the International Accounting Standards Board (IASB)
| |
| |
All amounts in Indian Rupees millions | |
| |
| |
Quarter ended | | |
Year ended | |
Sl. No. | |
Particulars | |
30.06.2024 | | |
31.03.2024 | | |
30.06.2023 | | |
31.03.2024 | |
| |
| |
(Unaudited) | | |
(Audited) | | |
(Unaudited) | | |
(Audited) | |
1 | |
Revenues | |
| 76,727 | | |
| 70,830 | | |
| 67,384 | | |
| 279,164 | |
2 | |
Cost of revenues | |
| 30,383 | | |
| 29,347 | | |
| 27,831 | | |
| 115,557 | |
3 | |
Gross profit (1 - 2) | |
| 46,344 | | |
| 41,483 | | |
| 39,553 | | |
| 163,607 | |
4 | |
Selling, general and administrative expenses | |
| 22,691 | | |
| 20,476 | | |
| 17,702 | | |
| 77,201 | |
5 | |
Research and development expenses | |
| 6,193 | | |
| 6,877 | | |
| 4,984 | | |
| 22,873 | |
6 | |
Impairment of non-current assets, net | |
| 5 | | |
| (173 | ) | |
| 11 | | |
| 3 | |
7 | |
Other income, net | |
| (470 | ) | |
| (656 | ) | |
| (780 | ) | |
| (4,199 | ) |
| |
Total operating expenses | |
| 28,419 | | |
| 26,524 | | |
| 21,917 | | |
| 95,878 | |
8 | |
Results from operating activities [(3) - (4 + 5 + 6 + 7)] | |
| 17,925 | | |
| 14,959 | | |
| 17,636 | | |
| 67,729 | |
| |
Finance income | |
| 1,435 | | |
| 1,615 | | |
| 1,155 | | |
| 5,705 | |
| |
Finance expense | |
| (598 | ) | |
| (593 | ) | |
| (371 | ) | |
| (1,711 | ) |
9 | |
Finance income, net | |
| 837 | | |
| 1,022 | | |
| 784 | | |
| 3,994 | |
10 | |
Share of profit of equity accounted investees, net of tax | |
| 59 | | |
| 35 | | |
| 43 | | |
| 147 | |
11 | |
Profit before tax (8 + 9 + 10) | |
| 18,821 | | |
| 16,016 | | |
| 18,463 | | |
| 71,870 | |
12 | |
Tax expense, net | |
| 4,901 | | |
| 2,946 | | |
| 4,438 | | |
| 16,186 | |
13 | |
Profit for the period/year (11 -12) | |
| 13,920 | | |
| 13,070 | | |
| 14,025 | | |
| 55,684 | |
14 | |
Earnings per share: | |
| | | |
| | | |
| | | |
| | |
| |
Basic earnings per share of Rs.5/- each | |
| 83.59 | | |
| 78.49 | | |
| 84.40 | | |
| 334.65 | |
| |
Diluted earnings per share of Rs.5/- each | |
| 83.46 | | |
| 78.35 | | |
| 84.22 | | |
| 334.02 | |
| |
| |
| (Not annualised) | | |
| (Not annualised) | | |
| (Not annualised) | | |
| | |
![](https://www.sec.gov/Archives/edgar/data/1135951/000157587224000833/drr0646_ex99-2img04.jpg)
Segment information | |
All amounts in Indian Rupees millions | |
| |
| |
Quarter ended | | |
Year ended | |
Sl.
No. | |
Particulars | |
30.06.2024 | | |
31.03.2024 | | |
30.06.2023 | | |
31.03.2024 | |
| |
| |
(Unaudited) | | |
(Audited) | | |
(Unaudited) | | |
(Audited) | |
| |
Segment wise revenue and results: | |
| | | |
| | | |
| | | |
| | |
1 | |
Segment revenue: | |
| | | |
| | | |
| | | |
| | |
| |
a) Pharmaceutical Services and Active Ingredients | |
| 10,309 | | |
| 11,526 | | |
| 9,218 | | |
| 40,580 | |
| |
b) Global Generics | |
| 68,858 | | |
| 61,191 | | |
| 60,083 | | |
| 245,453 | |
| |
c) Others | |
| 212 | | |
| 1,420 | | |
| 592 | | |
| 3,910 | |
| |
Total | |
| 79,379 | | |
| 74,137 | | |
| 69,893 | | |
| 289,943 | |
| |
Less: Inter-segment revenues | |
| 2,652 | | |
| 3,307 | | |
| 2,509 | | |
| 10,779 | |
| |
Net revenues | |
| 76,727 | | |
| 70,830 | | |
| 67,384 | | |
| 279,164 | |
| |
| |
| | | |
| | | |
| | | |
| | |
2 | |
Segment results: | |
| | | |
| | | |
| | | |
| | |
| |
Gross profit from each segment | |
| | | |
| | | |
| | | |
| | |
| |
a) Pharmaceutical Services and Active Ingredients | |
| 1,768 | | |
| 2,350 | | |
| 1,009 | | |
| 6,919 | |
| |
b) Global Generics | |
| 44,518 | | |
| 37,933 | | |
| 38,387 | | |
| 154,268 | |
| |
c) Others | |
| 58 | | |
| 1,200 | | |
| 157 | | |
| 2,420 | |
| |
Total | |
| 46,344 | | |
| 41,483 | | |
| 39,553 | | |
| 163,607 | |
| |
Less: Selling and other un-allocable expenditure, net of other income | |
| 27,523 | | |
| 25,467 | | |
| 21,090 | | |
| 91,737 | |
| |
Total profit before tax | |
| 18,821 | | |
| 16,016 | | |
| 18,463 | | |
| 71,870 | |
Global Generics segment includes operations of Biologics
business. Inter-segment revenues represent sale from Pharmaceutical Services and Active Ingredients to Global Generics and Others at cost.
Segmental capital employed
As certain assets of the Company including manufacturing
facilities, development facilities, treasury assets and liabilities are often deployed interchangeably across segments, it is impractical
to allocate these assets and liabilities to each segment. Hence, the details for capital employed have not been disclosed in the above
table.
Notes:
| 1 | The above statement of unaudited consolidated financial results of Dr.Reddy's Laboratories Limited ("the
Company"), which have been prepared in accordance with recognition and measurement principles of IAS 34 as issued by the International
Accounting Standards Board (IASB) and were reviewed and recommended by Audit Committee and approved by the Board of Directors at their
meetings held on 27 July 2024. The Auditors have carried out a limited review on the unaudited consolidated financial results and issued
an unmodified report thereon. |
| 2 | During the quarter ended 30 June 2024 and 31 March 2024, an amount of Rs.809 million and Rs.810 million
respectively, representing government grants has been accounted for as a reduction from cost of revenues. |
| 3 | “Other income, net” for the year ended 31 March 2024 includes:
a. Rs. 540 million recognised, in April 2023, pursuant to settlement agreement with Janssen Group in settlement of the claim brought in the Federal Court of Canada by the Company and its affiliates for damages under section 8 of the Canadian Patented Medicines (Notice of Compliance) Regulations in regard to the Company’s ANDS for a generic version of Zytiga®(Abiraterone).
b. Rs. 984 million recognised in September 2023 pursuant to settlement of product related litigation by the Company and its affiliates in the United Kingdom. These transactions pertains to the Company's Global Generics segment. |
| 4 | On 25 April 2024, the Company entered into a definitive agreement with Nestlé India Limited (“Nestlé
India”), for manufacturing, developing, promoting, marketing, selling, distributing, and commercializing nutraceutical products
and supplements in India and other geographies as may be agreed by the parties. The aforesaid business activities shall be carried out
through Dr. Reddy’s Nutraceuticals Limited (the “Nutraceuticals subsidiary”) which was incorporated on 14 March 2024.
Subsequently, the Nutraceutical subsidiary’s name was changed to Dr. Reddy’s and Nestlé Health Science Limited on 13
June 2024. |
The aforesaid definitive agreement is subject
to certain closing conditions and is expected to become effective by the quarter ended 30 September 2024, upon infusion of funds and completion
of other closing conditions.
As per terms agreed, the Company will hold
51% and the Nestlé India will hold 49% of the paid-up share capital in the Nutraceuticals subsidiary with shareholder rights to
voting, dividend distribution and other economic rights as agreed in the aforesaid definitive agreement. As per agreed terms, the Company
and Nestlé India will transfer license of its nutraceuticals brands to Nutraceuticals subsidiary.
Further, Nestlé India will have
a call option to increase their shareholding up to 60% in the Nutraceuticals subsidiary after six years from subscription date for a payment
at fair market value. However, the Company shall continue to hold at least 40% of the shareholding after Nestlé India exercises
its call option.
| 5 | On 26 June 2024, the Company entered into definitive agreement with Haleon UK Enterprises Limited (“Haleon”)
to acquire Haleon’s Ex-US global portfolio of consumer healthcare brands in the Nicotine Replacement Therapy category (“NRT
Business”). |
The definitive agreement for the acquisition
of this NRT Business from Haleon includes the transfer of intellectual property, employees, agreements with commercial manufacturing organization,
marketing authorizations and other assets relating to the commercialization of four brands- i.e., Nicotinell, Nicabate, Thrive, and Habitrol.
The proposed acquisition will be inclusive of all formats such as lozenge, patch, spray and/or gum in all applicable global markets outside
of the United States.
Completion of this transaction is subject
to satisfying closing conditions, including the completion of certain reorganization by Haleon Group, and obtaining foreign direct investment
approval in Sweden and merger control approvals in Brazil, Saudi Arabia and the United Arab Emirates. The transaction is expected to close
during the early part of the quarter ended 31 December 2024.
Upon completion of closing conditions,
the Company will acquire this NRT Business by purchasing the shares of Northstar Switzerland SARL (a Haleon Group Company) for a total
consideration of up to GBP 500 million (approximately Rs. 52,739 million as translated based on forex rate as at 30 June 2024), consisting
of an upfront cash payment GBP 458 million (approximately Rs. 48,309 million) and performance-based contingent payments of up to GBP 42
million (approximately Rs. 4,430 million), based on attainment of agreed-upon sales targets in calendar year 2024 and 2025, and meeting
other parameters.
These NRT Business will transition gradually into the Company
in a phased approach between April 2025 and February 2026. During the transition period, Haleon Group will provide distribution and related
services in the markets, facilitating successful integration of the business across various geographies into the Company.
| 6 | The Company considered the uncertainties relating to the escalation of conflict in the middle east, and
duration of military conflict between Russia and Ukraine, in assessing the recoverability of receivables, goodwill, intangible assets,
investments and other assets. For this purpose, the Company considered internal and external sources of information up to the date of
approval of these financial results. Based on its judgments, estimates and assumptions, including sensitivity analysis, the Company expects
to fully recover the carrying amount of receivables, goodwill, intangible assets, investments and other assets. The Company will continue
to closely monitor any material changes to future economic conditions. |
| 7 | The Company received an anonymous complaint in September 2020, alleging that healthcare professionals
in Ukraine and potentially in other countries were provided with improper payments by or on behalf of the Company in violation of U.S.
anti-corruption laws, specifically the U.S. Foreign Corrupt Practices Act. The Company disclosed the matter to the U.S. Department of
Justice (“DOJ”), Securities and Exchange Commission (“SEC”) and Securities Exchange Board of India. The Company
engaged a U.S. law firm to conduct the investigation at the instruction of a committee of the Company’s Board of Directors. On 6
July 2021 the Company received a subpoena from the SEC for the production of related documents, which were provided to the SEC. |
The Company has continued to make presentations
to the SEC and the DOJ in relation to the ongoing investigation and in relation to its Global Compliance Framework, which includes enhancement
initiatives undertaken by the Company. The Company continues to respond to requests made by the SEC and the DOJ and is complying with
its listing obligations as it relates to updating the regulatory agencies. While the findings from the aforesaid investigations could
result in government or regulatory enforcement actions against the Company in the United States and/or foreign jurisdictions which can
lead to civil and criminal sanctions under relevant laws, the outcomes, including liabilities, are not reasonably ascertainable at this
time.
| 8 | The Board of Directors of the Company at their meeting held on 27 July 2024, have approved the sub-division/
split of each equity share of face value of Rs.5/- (Rupees five only) each, fully paid-up, into 5 (Five) equity shares having face value
of Re.1/- (Rupee one only) each, fully paid-up, by alteration of the Capital Clause of the Memorandum of Association of the Company. Further,
each American Depositary Share (ADS) of the Company will continue to represent 1 (One) underlying equity share as at present and therefore,
the number of ADSs held by an American Depositary Receipt holder would consequently increase in proportion to the increase in number of
equity shares. The sub-division/ split will be subject to approval of the shareholders of the Company through postal ballot process. The
record date for the said sub-division/ split will be intimated in due course. |
Pending approval of the shareholders, the
basic and diluted EPS disclosed above have not been adjusted to give effect to such split in accordance with requirements under IAS 33,
Earnings per share.
| 9 | The figures for the quarter ended 31 March 2024 are the balancing figures between audited figures in respect
of the full financial year and the published unaudited year to date figures up to the third quarter of the relevant financial year, which
were subject to limited review. |
By order of the Board
For Dr. Reddy’s Laboratories Limited
Place: Hyderabad |
G V Prasad |
Date: 27 July 2024 |
Co-Chairman & Managing Director |
Exhibit 99.3
S.R. Batliboi
& Associates LLP
Chartered Accountants |
THE SKYVIEW 10
18th Floor, NORTH LOBBY
Survey No. 83/1, Raidurgam
Hyderabad - 500 032, India
Tel : +91 40 6141 6000 |
Independent Auditor’s Review Report on the
Quarterly Unaudited Consolidated Financial Results of Dr. Reddy’s Laboratories Limited Pursuant to the Regulation 33 of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended
Review Report to
The Board of Directors
Dr. Reddy’s Laboratories Limited
| 1. | We have reviewed the accompanying “Statement of Unaudited Consolidated Financial Results for the
Quarter Ended 30 June 2024” (the “Statement”) of Dr. Reddy’s Laboratories Limited (the “Holding Company”)
and its subsidiaries (the Holding Company and its subsidiaries together referred to as “the Group”), its associates and joint
ventures attached herewith, being submitted by the Holding Company pursuant to the requirements of Regulation 33 of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015, as amended (the “Listing Regulations”). |
| 2. | The Holding Company’s Management is responsible for the preparation of the Statement in accordance
with the recognition and measurement principles laid down in Indian Accounting Standard 34, (Ind AS 34) “Interim Financial Reporting”
prescribed under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles
generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. The Statement has been approved by the Holding
Company’s Board of Directors . Our responsibility is to express a conclusion on the Statement based on our review. |
| 3. | We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410,
“Review of Interim Financial Information Performed by the Independent Auditor of the Entity” issued by the Institute of Chartered
Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement
is free of material misstatement. A review of interim financial information consists of making inquiries, primarily of persons responsible
for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than
an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become
aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. |
We also performed procedures in accordance
with the circular issued by SEBI under Regulation 33(8) of the Listing Regulations, to the extent applicable.
| 4. | The Statement includes the results of the following entities: |
Holding Company
Dr. Reddy’s Laboratories Limited
Subsidiaries
| 1. | Aurigene Oncology limited |
| 2. | Cheminor Investments Limited |
| 3. | Dr. Reddy’s Bio-Sciences Limited |
| 4. | Dr. Reddy’s Formulations Limited |
| 5. | Dr. Reddy’s Farmaceutica Do Brasil Ltda. |
| 6. | Dr. Reddy’s Laboratories SA |
| 7. | Idea2Enterprises (India) Private Limited |
| 8. | Imperial Owners and Land Possessions Private Limited |
| 9. | Industrias Quimicas Falcon de Mexico, S.A.de C.V. |
| 10. | Svaas Wellness Limited |
| 11. | Aurigene Discovery Technologies (Malaysia) Sdn. Bhd. |
| 12. | Aurigene Pharmaceutical Services Limited |
| 13. | Beta Institut gemeinmitzige GmbH |
| 14. | betapharm Arzneimittel GmbH |
| 15. | Chirotech Technology Limited |
![](https://www.sec.gov/Archives/edgar/data/1135951/000157587224000833/drr0646_ex99-3img02.jpg) |
S.R. Batliboi & Associates LLP, a Limited Liability
Partnership with LLP Identity No. AAB-4295
Regd. Office : 22, Camac Street, Block B, 3rd Floor,
Kolkata-700 016 |
|
S.R. Batliboi
& Associates LLP
Chartered Accountants
| 17. | Dr. Reddy’s Laboratories (Australia) Pty. Limited |
| 18. | Dr. Reddy’s (Beijing) Pharmaceutical Co. Limited |
| 19. | Dr. Reddy’s Laboratories Canada, Inc. |
| 20. | Dr. Reddy’s Laboratories Chile SPA. |
| 21. | Dr. Reddy’s Laboratories (EU) Limited |
| 22. | Dr. Reddy’s Laboratories Inc. |
| 23. | Dr. Reddy’s Laboratories Japan KK |
| 24. | Dr. Reddy’s Laboratories Kazakhstan LLP |
| 25. | Dr. Reddy’s Laboratories LLC, Ukraine |
| 26. | Dr. Reddy’s Laboratories Louisiana LLC |
| 27. | Dr. Reddy’s Laboratories Malaysia Sdn. Bhd. |
| 28. | Dr. Reddy’s Laboratories New York, LLC |
| 29. | Dr. Reddy’s Laboratories Philippines Inc. |
| 30. | Dr. Reddy’s Laboratories (Proprietary) Limited |
| 31. | Dr. Reddy’s Laboratories Romania S.R.L. |
| 32. | Dr. Reddy’s Laboratories SAS |
| 33. | Dr. Reddy’s Laboratories Taiwan Limited |
| 34. | Dr. Reddy's Laboratories (Thailand) Limited |
| 35. | Dr. Reddy’s Laboratories (UK) Limited |
| 36. | Dr. Reddy’s New Zealand Limited |
| 37. | Dr. Reddy’s Research and Development B.V. |
| 39. | Dr. Reddy’s Venezuela, C.A. (till April 17, 2024) |
| 40. | Dr. Reddy’s Laboratories LLC, Russia |
| 41. | Lacock Holdings Limited |
| 44. | Reddy Netherlands B.V. |
| 45. | Reddy Pharma Iberia SAU |
| 46. | Reddy Pharma Italia S.R.L |
| 49. | Dr. Reddy’s Laboratories Jamaica Limited |
| 50. | Dr. Reddy’s and Nestle Health Science Limited (Formerly, Dr. Reddy’s Nutraceuticals Limited)
India |
Associates:
| 1. | 02 Renewable Energy IX Private Limited |
| 2. | Clean Renewable Energy KK2A Private Limited (From 30 May 2024) |
Joint Ventures:
| 1. | DRES Energy Private Limited |
| 2. | Kunshan Rotam Reddy Pharmaceutical Company Limited |
Other Consolidating Entities:
| 1. | Cheminor Employees Welfare Trust |
| 2. | Dr. Reddy’s Research Foundation |
| 3. | Dr. Reddy’s Employees ESOS Trust |
![](https://www.sec.gov/Archives/edgar/data/1135951/000157587224000833/drr0646_ex99-3img02.jpg)
S.R. Batliboi
& Associates LLP
Chartered Accountants
| 5. | Based on our review conducted and procedures performed as stated in paragraph 3 above, nothing has come
to our attention that causes us to believe that the accompanying Statement, prepared in accordance with recognition and measurement principles
laid down in the aforesaid Indian Accounting Standards (‘Ind AS’) specified under Section 133 of the Companies Act, 2013,
as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India, has not disclosed
the information required to be disclosed in terms of the Listing Regulations, including the manner in which it is to be disclosed, or
that it contains any material misstatement. |
For S.R. Batliboi & Associates LLP
Chartered Accountants
ICAI Firm registration number:
101049W/E300004
per Shankar Srinivasan
Partner
Membership No.: 213271
UDIN: 24213271BKELHF5941
Place: Hyderabad
Date: July 27, 2024
|
Dr. Reddys Laboratories Ltd.
8-2-337, Road No. 3, Banjara Hills,
Hyderabad - 500 034, Telangana,
India.
CIN : L85195TG1984PLC004507
Tel : +91 40
4900 2900
Fax : +91 40
4900 2999
Email : mail@drreddys.com
www.drreddys.com |
DR. REDDY'S LABORATORIES LIMITED
STATEMENT OF UNAUDITED CONSOLIDATED FINANCIAL RESULTS
FOR THE QUARTER ENDED 30 JUNE 2024
| |
| |
All amounts in Indian Rupees millions | |
| |
| |
Quarter ended | | |
Year ended | |
Sl.
No. | |
Particulars | |
30.06.2024 | | |
31.03.2024 | | |
30.06.2023 | | |
31.03.2024 | |
| |
| |
(Unaudited) | | |
(Audited) | | |
(Unaudited) | | |
(Audited) | |
| |
| |
| | |
| | |
| | |
| |
1 | |
Revenue from operations | |
| | | |
| | | |
| | | |
| | |
| |
a) Sales | |
| 75,396 | | |
| 68,258 | | |
| 66,143 | | |
| 271,396 | |
| |
b) License fees and service income | |
| 1,331 | | |
| 2,572 | | |
| 1,241 | | |
| 7,768 | |
| |
c) Other operating income | |
| 234 | | |
| 308 | | |
| 195 | | |
| 947 | |
| |
| |
| | | |
| | | |
| | | |
| | |
| |
Total revenue from operations | |
| 76,961 | | |
| 71,138 | | |
| 67,579 | | |
| 280,111 | |
| |
| |
| | | |
| | | |
| | | |
| | |
2 | |
Other income | |
| 1,872 | | |
| 1,975 | | |
| 1,740 | | |
| 8,943 | |
| |
| |
| | | |
| | | |
| | | |
| | |
3 | |
Total income (1 + 2) | |
| 78,833 | | |
| 73,113 | | |
| 69,319 | | |
| 289,054 | |
| |
| |
| | | |
| | | |
| | | |
| | |
4 | |
Expenses | |
| | | |
| | | |
| | | |
| | |
| |
a) Cost of materials consumed | |
| 12,272 | | |
| 10,962 | | |
| 12,968 | | |
| 44,901 | |
| |
b) Purchase of stock-in-trade | |
| 13,801 | | |
| 11,759 | | |
| 8,771 | | |
| 43,991 | |
| |
c) Changes in inventories of finished goods, work-in-progress and stock-in-trade | |
| (4,256 | ) | |
| (1,800 | ) | |
| (2,363 | ) | |
| (6,805 | ) |
| |
d) Employee benefits expense | |
| 14,137 | | |
| 12,836 | | |
| 11,897 | | |
| 50,301 | |
| |
e) Depreciation and amortisation expense | |
| 3,806 | | |
| 3,677 | | |
| 3,533 | | |
| 14,700 | |
| |
f) Impairment of non-current assets, net | |
| 5 | | |
| (173 | ) | |
| 11 | | |
| 3 | |
| |
g) Finance costs | |
| 598 | | |
| 593 | | |
| 371 | | |
| 1,711 | |
| |
h) Other expenses | |
| 19,703 | | |
| 19,242 | | |
| 15,674 | | |
| 68,389 | |
| |
| |
| | | |
| | | |
| | | |
| | |
| |
Total expenses | |
| 60,066 | | |
| 57,096 | | |
| 50,862 | | |
| 217,191 | |
| |
| |
| | | |
| | | |
| | | |
| | |
5 | |
Profit before tax and before share of equity accounted investees(3 - 4) | |
| 18,767 | | |
| 16,017 | | |
| 18,457 | | |
| 71,863 | |
| |
| |
| | | |
| | | |
| | | |
| | |
6 | |
Share of profit of equity accounted investees, net of tax | |
| 59 | | |
| 35 | | |
| 43 | | |
| 147 | |
| |
| |
| | | |
| | | |
| | | |
| | |
7 | |
Profit before tax (5+6) | |
| 18,826 | | |
| 16,052 | | |
| 18,500 | | |
| 72,010 | |
| |
| |
| | | |
| | | |
| | | |
| | |
8 | |
Tax expense/(benefit): | |
| | | |
| | | |
| | | |
| | |
| |
a) Current tax | |
| 5,215 | | |
| 2,823 | | |
| 7,197 | | |
| 19,459 | |
| |
b) Deferred tax | |
| (313 | ) | |
| 131 | | |
| (2,747 | ) | |
| (3,228 | ) |
| |
| |
| | | |
| | | |
| | | |
| | |
9 | |
Net profit after taxes and share of profit of associates (7 - 8) | |
| 13,924 | | |
| 13,098 | | |
| 14,050 | | |
| 55,780 | |
| |
| |
| | | |
| | | |
| | | |
| | |
10 | |
Other comprehensive income/(loss) | |
| | | |
| | | |
| | | |
| | |
| |
a) (i) Items that will not be reclassified subsequently to profit or loss | |
| (91 | ) | |
| (44 | ) | |
| 106 | | |
| (28 | ) |
| |
(ii) Income tax relating to items that will not be reclassified to profit
or loss | |
| - | | |
| 4 | | |
| - | | |
| 4 | |
| |
b) (i) Items that will be reclassified subsequently to profit or loss | |
| 115 | | |
| (565 | ) | |
| 147 | | |
| (749 | ) |
| |
(ii) Income tax relating to items that will be reclassified to profit or loss | |
| (6 | ) | |
| 48 | | |
| (210 | ) | |
| 117 | |
| |
Total other comprehensive income/(loss) | |
| 18 | | |
| (557 | ) | |
| 43 | | |
| (656 | ) |
| |
| |
| | | |
| | | |
| | | |
| | |
11 | |
Total comprehensive income (9 + 10) | |
| 13,942 | | |
| 12,541 | | |
| 14,093 | | |
| 55,124 | |
| |
| |
| | | |
| | | |
| | | |
| | |
12 | |
Paid-up equity share capital (face value Rs. 5/- each) | |
| 834 | | |
| 834 | | |
| 833 | | |
| 834 | |
| |
| |
| | | |
| | | |
| | | |
| | |
13 | |
Other equity | |
| - | | |
| - | | |
| - | | |
| 281,714 | |
| |
| |
| | | |
| | | |
| | | |
| | |
14 | |
Earnings per equity share (face value Rs. 5/- each) | |
| | | |
| | | |
| | | |
| | |
| |
| |
| | | |
| | | |
| | | |
| | |
| |
Basic | |
| 83.61 | | |
| 78.66 | | |
| 84.55 | | |
| 335.22 | |
| |
Diluted | |
| 83.48 | | |
| 78.53 | | |
| 84.36 | | |
| 334.59 | |
| |
| |
| (Not annualised) | | |
| (Not annualised) | | |
| (Not annualised) | | |
| | |
See accompanying notes to the financial results
![](https://www.sec.gov/Archives/edgar/data/1135951/000157587224000833/drr0646_ex99-3img01.jpg)
DR. REDDY'S LABORATORIES LIMITED
Segment information | |
All amounts in Indian Rupees millions | |
| |
| |
Quarter ended | | |
Year ended | |
Sl.
No. | |
Particulars | |
30.06.2024 | | |
31.03.2024 | | |
30.06.2023 | | |
31.03.2024 | |
| |
| |
(Unaudited) | | |
(Audited) | | |
(Unaudited) | | |
(Audited) | |
| |
Segment wise revenue and results: | |
| | | |
| | | |
| | | |
| | |
1 | |
Segment revenue : | |
| | | |
| | | |
| | | |
| | |
| |
a) Pharmaceutical Services and Active Ingredients | |
| 10,472 | | |
| 11,725 | | |
| 9,365 | | |
| 41,295 | |
| |
b) Global Generics | |
| 68,929 | | |
| 61,289 | | |
| 60,130 | | |
| 245,673 | |
| |
c) Others | |
| 212 | | |
| 1,431 | | |
| 593 | | |
| 3,922 | |
| |
Total | |
| 79,613 | | |
| 74,445 | | |
| 70,088 | | |
| 290,890 | |
| |
Less: Inter-segment revenue | |
| 2,652 | | |
| 3,307 | | |
| 2,509 | | |
| 10,779 | |
| |
Total revenue from operations | |
| 76,961 | | |
| 71,138 | | |
| 67,579 | | |
| 280,111 | |
| |
| |
| | | |
| | | |
| | | |
| | |
2 | |
Segment results: | |
| | | |
| | | |
| | | |
| | |
| |
Gross profit from each segment | |
| | | |
| | | |
| | | |
| | |
| |
a) Pharmaceutical Services and Active Ingredients | |
| 1,772 | | |
| 2,349 | | |
| 1,013 | | |
| 6,929 | |
| |
b) Global Generics | |
| 44,518 | | |
| 37,937 | | |
| 38,386 | | |
| 154,272 | |
| |
c) Others | |
| 58 | | |
| 1,202 | | |
| 156 | | |
| 2,423 | |
| |
Total | |
| 46,348 | | |
| 41,488 | | |
| 39,555 | | |
| 163,624 | |
| |
| |
| | | |
| | | |
| | | |
| | |
| |
Less: Selling and other un-allocable expenditure/(income), net | |
| 27,522 | | |
| 25,436 | | |
| 21,055 | | |
| 91,614 | |
| |
Total profit before tax | |
| 18,826 | | |
| 16,052 | | |
| 18,500 | | |
| 72,010 | |
Global Generics includes operations of Biologics business.
Inter-segment revenue represents sale from Pharmaceutical Services and Active Ingredients to Global Generics and others at cost.
Segmental capital employed
As certain assets of the Company including manufacturing
facilities, development facilities and treasury assets and liabilities are often deployed interchangeably across segments, it is impractical
to allocate these assets and liabilities to each segment. Hence, the details for capital employed have not been disclosed in the above
table.
Notes:
| 1 | The above statement of unaudited consolidated financial results of Dr. Reddy's Laboratories Limited ("the
Company"), which have been prepared in accordance with the Indian Accounting Standards ("Ind AS") prescribed under section
133 of Companies Act,2013 ("the Act") read with relevant rules issues thereunder, other accounting principles generally accepted
in India and guidelines issues by the Securities and Exchange Board of India ("SEBI") were reviewed and recommended by Audit
Committee and approved by the Board of Directors at their meetings held on 27 July 2024. The Statutory Auditors have carried out a limited
review on the unaudited consolidated financial results and issued an unmodified report thereon. |
| 2 | “Other income” for the year ended 31 March 2024 includes : |
a. Rs.540 million recognised in April
2023, pursuant to settlement agreement with Janssen Group, in settlement of the claim brought in the Federal Court of Canada by the Company
and its affiliates for damages under section 8 of the Canadian Patented Medicines (Notice of Compliance) Regulations in regard to the
Company’s ANDS for a generic version of Zytiga®(Abiraterone).This transaction pertains to the Company's Global Generics
segment.
b. Rs.984 million recognised in September
2023, pursuant to settlement of product related litigation by the Company and its affiliates in the United Kingdom. This transaction pertains
to the Company's Global Generics segment.
| 3 | During the quarter ended 30 June 2024 and 31 March 2024, an amount of Rs. 809 million and Rs. 810 million
respectively, representing government grants has been accounted as a reduction from cost of material consumed. |
| 4 | Agreement with Nestlé India: |
On 25 April 2024, the Company entered into
a definitive agreement with Nestlé India Limited (“Nestlé India”), for manufacturing, developing, promoting,
marketing, selling, distributing, and commercializing nutraceutical products and supplements in India and other geographies as may be
agreed by the parties. The aforesaid business activities shall be carried out through Dr. Reddy’s Nutraceuticals Limited (the “Nutraceuticals
subsidiary”) which was incorporated on 14 March 2024. Subsequently, the Nutraceutical subsidiary’s name was changed to Dr.
Reddy’s and Nestlé Health Science Limited on 13 June 2024.
The aforesaid definitive agreement is subject
to certain closing conditions and is expected to become effective by the quarter ended 30 September 2024, upon infusion of funds and completion
of other closing conditions.
As per terms agreed, the Company will hold
51% and the Nestlé India will hold 49% of the paid-up share capital in the Nutraceuticals subsidiary with shareholder rights to
voting, dividend distribution and other economic rights as agreed in the aforesaid definitive agreement. As per agreed terms, the Company
and Nestlé India will transfer license of its nutraceuticals brands to Nutraceuticals subsidiary.
Further, Nestlé India will have
a call option to increase their shareholding up to 60% in the Nutraceuticals subsidiary after six years from subscription date for a payment
at fair market value. However, the Company shall continue to hold at least 40% of the shareholding after Nestlé India exercises
its call option.
![](https://www.sec.gov/Archives/edgar/data/1135951/000157587224000833/drr0646_ex99-3img01.jpg)
DR. REDDY'S LABORATORIES LIMITED
On 26 June 2024, the Company entered into
a definitive agreement with Haleon UK Enterprises Limited (“Haleon”) to acquire Haleon’s Ex-US global portfolio of consumer
healthcare brands in the Nicotine Replacement Therapy category (“NRT Business”).
The definitive agreement for the acquisition
of this NRT Business from Haleon includes the transfer of intellectual property, employees, agreements with commercial manufacturing organization,
marketing authorizations and other assets relating to the commercialization of four brands i.e., Nicotinell, Nicabate, Thrive, and Habitrol.
The proposed acquisition will be inclusive of all formats such as lozenge, patch, spray and/or gum in all applicable global markets outside
of the United States.
Completion of this transaction is subject
to satisfying closing conditions, including the completion of certain reorganization by Haleon Group, and obtaining foreign direct investment
approval in Sweden and merger control approvals in Brazil, Saudi Arabia and the United Arab Emirates. The transaction is expected to close
during the early part of the quarter ended 31 December 2024.
Upon completion of closing conditions,
the Company will acquire this NRT Business by purchasing the shares of Northstar Switzerland SARL (a Haleon Group Company) for a total
consideration of up to GBP 500 (approximately Rs. 52,739 as translated based on forex rate as at 30th June 2024), consisting of an upfront
cash payment GBP 458 (approximately Rs. 48,309) and performance-based contingent payments of up to GBP 42 (approximately Rs. 4,430), based
on attainment of agreed-upon sales targets in calendar year 2024 and 2025, and meeting other parameters.
These NRT Business will transition gradually
into the Company in a phased approach between April 2025 and February 2026. During the transition period, Haleon Group will provide distribution
and related services in the markets, facilitating successful integration of the business across various geographies into the Company.
| 6 | The Company considered the uncertainties relating to the escalation of conflict in the middle east, and
duration of military conflict between Russia and Ukraine, in assessing the recoverability of receivables, goodwill, intangible assets,
investments and other assets. For this purpose, the Company considered internal and external sources of information up to the date of
approval of these financial results. Based on its judgments, estimates and assumptions, including sensitivity analysis, the Company expects
to fully recover the carrying amount of receivables, goodwill, intangible assets, investments and other assets. The Company will continue
to closely monitor any material changes to future economic conditions. |
| 7 | The Company received an anonymous complaint in September 2020, alleging that healthcare professionals
in Ukraine and potentially in other countries were provided with improper payments by or on behalf of the Company in violation of U.S.
anti-corruption laws, specifically the U.S. Foreign Corrupt Practices Act. The Company disclosed the matter to the U.S. Department of
Justice (“DOJ”), Securities and Exchange Commission (“SEC”) and Securities Exchange Board of India. The Company
engaged a U.S. law firm to conduct the investigation at the instruction of a committee of the Company’s Board of Directors. On 6
July, 2021 the Company received a subpoena from the SEC for the production of related documents, which were provided to the SEC. |
The Company has continued to make presentations
to the SEC and the DOJ in relation to the ongoing investigation and in relation to its Global Compliance Framework, which includes enhancement
initiatives undertaken by the Company. The Company continues to respond to requests made by the SEC and the DOJ and is complying with
its listing obligations as it relates to updating the regulatory agencies. While the findings from the aforesaid investigations could
result in government or regulatory enforcement actions against the Company in the United States and/or foreign jurisdictions which can
lead to civil and criminal sanctions under relevant laws, the outcomes, including liabilities, are not reasonably ascertainable at this
time.
| 8 | The Board of Directors of the Company at their meeting held on 27 July 2024, have approved the sub-division/
split of each equity share of face value of Rs.5/- (Rupees five only) each, fully paid-up, into 5 (Five) equity shares having face value
of Re.1/- (Rupee one only) each, fully paid-up, by alteration of the Capital Clause of the Memorandum of Association of the Company. Further,
each American Depositary Share (ADS) of the Company will continue to represent 1 (One) underlying equity share as at present and therefore,
the number of ADSs held by an American Depositary Receipt holder would consequently increase in proportion to the increase in number of
equity shares. The sub-division/ split will be subject to approval of the shareholders of the Company through postal ballot process. The
record date for the said sub-division/ split will be intimated in due course. |
Pending approval of the shareholders, the
basic and diluted EPS disclosed above have not been adjusted to give effect to such split in accordance with requirements under Ind AS
33, Earnings per share.
| 9 | The figures for the quarter ended 31 March 2024 are the balancing figures between audited figures in respect
of the full financial year and the published unaudited year to date figures up to the third quarter of the relevant financial year, which
were subject to limited review. |
By order of the Board
For Dr. Reddy’s Laboratories Limited
Place: Hyderabad |
G V Prasad |
Date: 27 July 2024 |
Co-Chairman & Managing Director |
Exhibit 99.4
S.R. Batliboi & Associates LLP
Chartered Accountants |
THE SKYVIEW 10
18th Floor, NORTH LOBBY
Survey No. 83/1, Raidurgam
Hyderabad - 500 032, India
Tel : +91 40 6141 6000 |
Independent Auditor’s Review Report on the
Quarterly Unaudited Standalone Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, as amended
Review Report to
The Board of Directors
Dr. Reddy’s Laboratories Limited
| 1. | We have reviewed the accompanying “Statement of Unaudited Standalone Financial Results for the Quarter
Ended 30 June 2024” (the “Statement”) of Dr. Reddy’s Laboratories Limited (the “Company”) for the
quarter ended June 30, 2024 attached herewith, being submitted by the Company pursuant to the requirements of Regulation 33 of the
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the “Listing Regulations”). |
| 2. | The Company’s Management is responsible for the preparation of the Statement in accordance with
the recognition and measurement principles laid down in Indian Accounting Standard 34, (Ind AS 34) “Interim Financial Reporting”
prescribed under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles
generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. The Statement has been approved by the Company’s
Board of Directors. Our responsibility is to express a conclusion on the Statement based on our review. |
| 3. | We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410,
“Review of Interim Financial Information Performed by the Independent Auditor of the Entity” issued by the Institute of Chartered
Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement
is free of material misstatement. A review of interim financial information consists of making inquiries, primarily of persons responsible
for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than
an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become
aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. |
| 4. | Based on our review conducted as above, nothing has come to our attention that causes us to believe that
the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting
Standards (‘Ind AS’) specified under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued
thereunder and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in
terms of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement. |
For S.R. BATLIBOI & ASSOCIATES LLP
Chartered Accountants
ICAI Firm registration number:
101049W/E300004
![](https://www.sec.gov/Archives/edgar/data/1135951/000157587224000833/drr0646_ex99-4img02.jpg) |
![](https://www.sec.gov/Archives/edgar/data/1135951/000157587224000833/drr0646_ex99-4img05.jpg) |
per Shankar Srinivasan |
Partner |
Membership No.: 213271 |
UDIN: 24213271BKELHG6789
Place: Hyderabad
Date: July 27, 2024
S.R. Batliboi & Associates LLP, a Limited Liability
Partnership with LLP Identity No. AAB-4295
Regd. Office : 22, Camac Street, Block B, 3rd Floor,
Kolkata-700 016
![](https://www.sec.gov/Archives/edgar/data/1135951/000157587224000833/drr0646_ex99-4img01.jpg) |
Dr. Reddys Laboratories Ltd.
8-2-337, Road No. 3, Banjara Hills,
Hyderabad - 500 034, Telangana,
India.
CIN : L85195TG1984PLC004507
Tel : +91
40 4900 2900
Fax : +91 40
4900 2999
Email : mail@drreddys.com
www.drreddys.com |
DR. REDDY'S LABORATORIES LIMITED
STATEMENT OF UNAUDITED STANDALONE FINANCIAL RESULTS
FOR THE QUARTER ENDED 30 JUNE 2024
| |
| |
| | |
All amounts in Indian Rupees millions | |
| |
| |
Quarter ended | | |
Year ended | |
Sl.
No. | |
Particulars | |
30.06.2024 | | |
31.03.2024 | | |
30.06.2023 | | |
31.03.2024 | |
| |
| |
(Unaudited) | | |
(Audited) | | |
(Unaudited) | | |
(Audited) | |
| |
| |
| | |
| | |
| | |
| |
1 | |
Revenue from operations | |
| | | |
| | | |
| | | |
| | |
| |
a) Sales | |
| 58,076 | | |
| 50,304 | | |
| 54,034 | | |
| 192,764 | |
| |
b) License fees and service income | |
| 163 | | |
| 514 | | |
| 167 | | |
| 1,277 | |
| |
c) Other operating income | |
| 173 | | |
| 230 | | |
| 172 | | |
| 797 | |
| |
Total revenue from operations | |
| 58,412 | | |
| 51,048 | | |
| 54,373 | | |
| 194,838 | |
| |
| |
| | | |
| | | |
| | | |
| | |
2 | |
Other income | |
| 2,178 | | |
| 2,127 | | |
| 2,336 | | |
| 8,623 | |
| |
| |
| | | |
| | | |
| | | |
| | |
| |
Total income (1 + 2) | |
| 60,590 | | |
| 53,175 | | |
| 56,709 | | |
| 203,461 | |
| |
| |
| | | |
| | | |
| | | |
| | |
3 | |
Expenses | |
| | | |
| | | |
| | | |
| | |
| |
a) Cost of materials consumed | |
| 9,111 | | |
| 9,077 | | |
| 8,139 | | |
| 32,915 | |
| |
b) Purchase of stock-in-trade | |
| 7,403 | | |
| 5,463 | | |
| 3,842 | | |
| 19,866 | |
| |
c) Changes in inventories of finished goods, work-in-progress and stock-in-trade | |
| (1,261 | ) | |
| (520 | ) | |
| (163 | ) | |
| (2,388 | ) |
| |
d) Employee benefits expense | |
| 8,559 | | |
| 7,795 | | |
| 7,402 | | |
| 30,857 | |
| |
e) Depreciation and amortisation expense | |
| 2,498 | | |
| 2,462 | | |
| 2,372 | | |
| 9,756 | |
| |
f) Impairment of non current assets, net | |
| - | | |
| 260 | | |
| - | | |
| 260 | |
| |
g) Finance costs | |
| 71 | | |
| 59 | | |
| 45 | | |
| 218 | |
| |
h) Other expenses | |
| 15,070 | | |
| 15,187 | | |
| 12,876 | | |
| 54,064 | |
| |
| |
| | | |
| | | |
| | | |
| | |
| |
Total expenses | |
| 41,451 | | |
| 39,783 | | |
| 34,513 | | |
| 145,548 | |
| |
| |
| | | |
| | | |
| | | |
| | |
4 | |
Profit before tax (1 + 2 - 3) | |
| 19,139 | | |
| 13,392 | | |
| 22,196 | | |
| 57,913 | |
| |
| |
| | | |
| | | |
| | | |
| | |
5 | |
Tax expense | |
| | | |
| | | |
| | | |
| | |
| |
a) Current tax | |
| 4,666 | | |
| 2,702 | | |
| 5,387 | | |
| 13,618 | |
| |
b) Deferred tax | |
| 301 | | |
| 342 | | |
| 415 | | |
| 875 | |
| |
| |
| | | |
| | | |
| | | |
| | |
6 | |
Net profit for the period / year (4 - 5) | |
| 14,172 | | |
| 10,348 | | |
| 16,394 | | |
| 43,420 | |
| |
| |
| | | |
| | | |
| | | |
| | |
7 | |
Other comprehensive income / (loss) | |
| | | |
| | | |
| | | |
| | |
| |
a) (i) Items that will not be reclassified to profit or loss | |
| - | | |
| 27 | | |
| 1 | | |
| 21 | |
| |
(ii) Income tax relating to items that will not be reclassified to profit or loss | |
| - | | |
| (7 | ) | |
| - | | |
| (7 | ) |
| |
| |
| | | |
| | | |
| | | |
| | |
| |
b) (i) Items that will be reclassified subsequently to profit or loss | |
| 55 | | |
| (189 | ) | |
| 521 | | |
| (446 | ) |
| |
(ii) Income tax relating to items that will be reclassified to profit or loss | |
| (14 | ) | |
| 49 | | |
| (130 | ) | |
| 114 | |
| |
| |
| | | |
| | | |
| | | |
| | |
| |
Total other comprehensive income / (loss) | |
| 41 | | |
| (120 | ) | |
| 392 | | |
| (318 | ) |
| |
| |
| | | |
| | | |
| | | |
| | |
8 | |
Total comprehensive income (6 + 7) | |
| 14,213 | | |
| 10,228 | | |
| 16,786 | | |
| 43,102 | |
| |
| |
| | | |
| | | |
| | | |
| | |
9 | |
Paid-up equity share capital (face value Rs. 5/- each) | |
| 834 | | |
| 834 | | |
| 833 | | |
| 834 | |
| |
| |
| | | |
| | | |
| | | |
| | |
10 | |
Other equity | |
| | | |
| | | |
| | | |
| 241,574 | |
| |
| |
| | | |
| | | |
| | | |
| | |
11 | |
Earnings per equity share (face value Rs. 5/- each) | |
| | | |
| | | |
| | | |
| | |
| |
| |
| | | |
| | | |
| | | |
| | |
| |
Basic | |
| 85.10 | | |
| 62.14 | | |
| 98.66 | | |
| 260.95 | |
| |
Diluted | |
| 84.97 | | |
| 62.04 | | |
| 98.45 | | |
| 260.46 | |
| |
| |
| (Not annualised) | | |
| (Not annualised) | | |
| (Not annualised) | | |
| | |
See accompanying notes to the financial results.
DR. REDDY'S LABORATORIES LIMITED
Segment information | |
| | |
All amounts in Indian Rupees millions | |
| |
| |
Quarter ended | | |
Year ended | |
Sl.
No. | |
Particulars | |
30.06.2024 | | |
31.03.2024 | | |
30.06.2023 | | |
31.03.2024 | |
| |
| |
(Unaudited) | | |
(Audited) | | |
(Unaudited) | | |
(Audited) | |
| |
Segment wise revenue and results | |
| | | |
| | | |
| | | |
| | |
1 | |
Segment revenue | |
| | | |
| | | |
| | | |
| | |
| |
a) Pharmaceutical Services and Active Ingredients | |
| 8,520 | | |
| 9,842 | | |
| 6,885 | | |
| 30,742 | |
| |
b) Global Generics | |
| 52,447 | | |
| 44,006 | | |
| 49,678 | | |
| 173,405 | |
| |
c) Others | |
| 61 | | |
| 353 | | |
| 131 | | |
| 678 | |
| |
Total | |
| 61,028 | | |
| 54,201 | | |
| 56,694 | | |
| 204,825 | |
| |
| |
| | | |
| | | |
| | | |
| | |
| |
Less: Inter-segment revenue | |
| 2,616 | | |
| 3,153 | | |
| 2,321 | | |
| 9,987 | |
| |
Total revenue from operations | |
| 58,412 | | |
| 51,048 | | |
| 54,373 | | |
| 194,838 | |
| |
| |
| | | |
| | | |
| | | |
| | |
2 | |
Segment results | |
| | | |
| | | |
| | | |
| | |
| |
Profit / (loss) before tax and interest from each segment | |
| | | |
| | | |
| | | |
| | |
| |
a) Pharmaceutical Services and Active Ingredients | |
| (70 | ) | |
| 1,246 | | |
| (596 | ) | |
| (287 | ) |
| |
b) Global Generics | |
| 19,667 | | |
| 12,172 | | |
| 22,492 | | |
| 57,670 | |
| |
c) Others | |
| 97 | | |
| 239 | | |
| (9 | ) | |
| 536 | |
| |
Total | |
| 19,694 | | |
| 13,657 | | |
| 21,887 | | |
| 57,919 | |
| |
| |
| | | |
| | | |
| | | |
| | |
| |
Less: (i) Finance costs | |
| 71 | | |
| 59 | | |
| 45 | | |
| 218 | |
| |
(ii) Other un-allocable expenditure / (income), net | |
| 484 | | |
| 206 | | |
| (354 | ) | |
| (212 | ) |
| |
Total profit before tax | |
| 19,139 | | |
| 13,392 | | |
| 22,196 | | |
| 57,913 | |
Global Generics includes operations of Biologics business.
Inter-segment revenue represents sale from Pharmaceutical Services and Active Ingredients to Global Generics at cost.
Segmental capital employed
As certain assets of the Company including manufacturing
facilities, development facilities and treasury assets and liabilities are often deployed interchangeably across segments, it is impractical
to allocate these assets and liabilities to each segment. Hence, the details for capital employed have not been disclosed in the above
table.
Notes:
| 1 | The above statement of unaudited standalone financial results of Dr. Reddy's Laboratories Limited ("the
Company"), which have been prepared in accordance with the Indian Accounting Standards (''Ind AS'') prescribed under Section 133
of the Companies Act, 2013 ("the Act'') read with relevant rules issued thereunder, other accounting principles generally accepted
in India and guidelines issued by the Securities and Exchange Board of India ("SEBI'') were reviewed and recommended by the Audit
Committee and approved by the Board of Directors at their meetings held on 27 July 2024. The Statutory Auditors have carried out a limited
review on the unaudited standalone financial results and issued unmodified report thereon. |
| 2 | “Other income” for the year ended 31 March 2024 includes: |
a) Rs.540 million recognised in April 2023,
pursuant to settlement agreement with Janssen Group, in settlement of the claim brought in the Federal Court of Canada by the Company
and its affiliates for damages under section 8 of the Canadian Patented Medicines (Notice of Compliance) Regulations in regard to the
Company’s ANDS for a generic version of Zytiga®(Abiraterone).This transaction pertains to the Company's Global Generics segment.
b) Dividend income of Rs. 445 million recognised
in June 2023, declared by Kunshan Rotan Reddy Pharmaceutical Company Limited, joint venture of the company.
| 3 | During the quarter ended 30 June 2024 and 31 March 2024, an amount of Rs. 804 million and Rs. 806 million,
representing government grants has been accounted as a reduction from cost of material consumed. |
On 25 April 2024, the Company entered into
a definitive agreement with Nestlé India Limited (“Nestlé India”), for manufacturing, developing, promoting,
marketing, selling, distributing, and commercializing nutraceutical products and supplements in India and other geographies as may be
agreed by the parties. The aforesaid business activities shall be carried out through Dr. Reddy’s Nutraceuticals Limited (the “Nutraceuticals
subsidiary”) which was incorporated on 14 March 2024. Subsequently, the Nutraceutical subsidiary’s name was changed to Dr.
Reddy’s and Nestlé Health Science Limited on 13 June 2024.
The aforesaid definitive agreement is subject
to certain closing conditions and is expected to become effective by the quarter ended 30 September 2024, upon infusion of funds and completion
of other closing conditions.
As per terms agreed, the Company will hold
51% and the Nestlé India will hold 49% of the paid-up share capital in the Nutraceuticals subsidiary with shareholder rights to
voting, dividend distribution and other economic rights as agreed in the aforesaid definitive agreement. As per agreed terms, the Company
and Nestlé India will transfer license of its nutraceuticals brands to Nutraceuticals subsidiary.
Further, Nestlé India will have
a call option to increase their shareholding up to 60% in the Nutraceuticals subsidiary after six years from subscription date for a payment
at fair market value. However, the Company shall continue to hold at least 40% of the shareholding after Nestlé India exercises
its call option.
![](https://www.sec.gov/Archives/edgar/data/1135951/000157587224000833/drr0646_ex99-4img01.jpg)
Dr. Reddys Laboratories Limited.
| 5 | The Company considered the uncertainties relating to the escalation of conflict in the middle east, and
duration of military conflict between Russia and Ukraine, in assessing the recoverability of receivables, goodwill, intangible assets,
investments and other assets. For this purpose, the Company considered internal and external sources of information up to the date of
approval of these financial results. Based on its judgments, estimates and assumptions, including sensitivity analysis, the Company expects
to fully recover the carrying amount of receivables, goodwill, intangible assets, investments and other assets. The Company will continue
to closely monitor any material changes to future economic conditions. |
| 6 | The Company received an anonymous complaint in September 2020, alleging that healthcare professionals
in Ukraine and potentially in other countries were provided with improper payments by or on behalf of the Company in violation of U.S.
anti-corruption laws, specifically the U.S. Foreign Corrupt Practices Act. The Company disclosed the matter to the U.S. Department of
Justice (“DOJ”), Securities and Exchange Commission (“SEC”) and Securities Exchange Board of India. The Company
engaged a U.S. law firm to conduct the investigation at the instruction of a committee of the Company’s Board of Directors. On 06
July 2021 the Company received a subpoena from the SEC for the production of related documents, which were provided to the SEC. |
The Company has continued to make presentations
to the SEC and the DOJ in relation to the ongoing investigation and in relation to its Global Compliance Framework, which includes enhancement
initiatives undertaken by the Company. The Company continues to respond to requests made by the SEC and the DOJ and is complying with
its listing obligations as it relates to updating the regulatory agencies. While the findings from the aforesaid investigations could
result in government or regulatory enforcement actions against the Company in the United States and/or foreign jurisdictions which can
lead to civil and criminal sanctions under relevant laws, the outcomes, including liabilities, are not reasonably ascertainable at this
time.
| 7 | The Board of Directors of the Company at their meeting held on 27 July 2024, have approved the sub-division/
split of each equity share of face value of Rs.5/- (Rupees five only) each, fully paid-up, into 5 (Five) equity shares having face value
of Re.1/- (Rupee one only) each, fully paid-up, by alteration of the Capital Clause of the Memorandum of Association of the Company. Further,
each American Depositary Share (ADS) of the Company will continue to represent 1 (One) underlying equity share as at present and therefore,
the number of ADSs held by an American Depositary Receipt holder would consequently increase in proportion to the increase in number of
equity shares. The sub-division/ split will be subject to approval of the shareholders of the Company through postal ballot process. The
record date for the said sub-division/ split will be intimated in due course. |
Pending approval of the shareholders, the
basic and diluted EPS disclosed above have not been adjusted to give effect to such split in accordance with requirements under Ind AS
33, Earnings per share.
| 8 | The figures for the quarter ended 31 March 2024 are the balancing figures between audited figures in respect
of the full financial year and the published unaudited year to date figures up to the third quarter of the relevant financial year, which
were subject to limited review. |
By order of the Board
For Dr. Reddy’s Laboratories Limited
![](https://www.sec.gov/Archives/edgar/data/1135951/000157587224000833/drr0646_ex99-4img03.jpg)
Place: Hyderabad |
G V Prasad |
Date: 27 July 2024 |
Co-Chairman & Managing Director |
Dr Reddys Laboratories (NYSE:RDY)
Gráfica de Acción Histórica
De Jun 2024 a Jul 2024
Dr Reddys Laboratories (NYSE:RDY)
Gráfica de Acción Histórica
De Jul 2023 a Jul 2024