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
January 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 and nine months ended December 31, 2023.
On January 30, 2024, we announced our results
of operations for the quarter and nine months ended December 31, 2023. 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 and nine
months ended December 31, 2023, 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 and nine months ended December 31, 2023.
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: January 30, 2024 |
By: |
/s/ K Randhir Singh |
|
|
Name: |
K Randhir Singh |
|
|
Title: |
Company Secretary & Compliance Officer |
Exhibit 99.1
|
CONTACT |
DR. REDDY'S
LABORATORIES LTD. |
Investor
relationS |
Media
relationS |
8-2-337,
Road No. 3, Banjara Hills,
Hyderabad
- 500034. Telangana, India. |
Richa
Periwal richaperiwal@drreddys.com
AISHWARYA
SITHARAM aishwaryasitharam@drreddys.com |
USHA
IYER ushaiyer@drreddys.com |
Dr.
Reddy’s Q3 & 9M FY24 Financial Results
Hyderabad,
India, January 30, 2024: Dr. Reddy’s Laboratories Ltd. (BSE: 500124 | NSE: DRREDDY | NYSE: RDY | NSEIFSC: DRREDDY) today announced
its consolidated financial results for the quarter and nine months ended December 31, 2023. The information mentioned in this release
is based on consolidated financial statements under International Financial Reporting Standards (IFRS).
|
Q3FY24 |
9MFY24 |
|
|
|
Revenues |
Rs. 72,148 Mn |
Rs. 208,334 Mn |
|
[Up: 7% YoY; Up: 5% QoQ] |
[Up: 14% YoY; Up] |
|
|
|
Gross Margin |
58.5% |
58.6% |
|
[Q3FY23: 59.2%; Q2FY24: 58.7%] |
[9M FY23: 56.5%] |
|
|
|
SG&A Expenses |
Rs. 20,228 Mn |
Rs. 56,725 Mn |
|
[Up: 12% YoY; 8% QoQ] |
[Up: 13% YoY] |
|
|
|
R&D Expenses |
Rs. 5,565 Mn |
Rs. 15,996 Mn |
|
[7.7% of Revenues] |
[7.7% of Revenues] |
|
|
|
EBITDA |
Rs. 21,107 Mn |
Rs. 64,278 Mn |
|
[29.3% of Revenues] |
[30.9% of Revenues] |
|
|
|
Profit before Tax |
Rs. 18,257 Mn |
Rs. 55,854 Mn |
|
[Up: 12% YoY; Down: 5% QoQ] |
[Up: 19% YoY] |
|
|
|
Profit after Tax |
Rs. 13,789 Mn |
Rs. 42,614 Mn |
|
[Up: 11% YoY; Down: 7% QoQ] |
[Up: 20% YoY] |
Commenting
on the results, Co-Chairman & MD, G V Prasad said: “We delivered another quarter of highest-ever sales and robust
financial performance aided by new products performance and base business market share gain in the U.S., new products launch momentum
and strong performance in Europe. We continue to strengthen our core businesses and invest in innovative products including strategic
collaborations for novel molecules to meet unmet needs of patients.”
All
amounts in millions, except EPS |
All
US dollar amounts based on convenience translation rate of 1 USD = Rs. 83.19 |
Dr.
Reddy’s Laboratories Limited & Subsidiaries
Revenue
Mix by Segment [Q3FY24]
| |
Q3FY24 | | |
Q3FY23 | | |
YoY | | |
Q2FY24 | | |
QoQ | |
Particulars | |
(Rs.) | | |
(Rs.) | | |
Gr
% | | |
(Rs.) | | |
Gr% | |
Global
Generics | |
| 63,095 | | |
| 59,241 | | |
| 7 | % | |
| 61,084 | | |
| 3 | % |
North America | |
| 33,492 | | |
| 30,567 | | |
| 9 | % | |
| 31,700 | | |
| 5 | % |
Europe | |
| 4,970 | | |
| 4,303 | | |
| 15 | % | |
| 5,286 | | |
| -6 | % |
India | |
| 11,800 | | |
| 11,274 | | |
| 5 | % | |
| 11,860 | | |
| -1 | % |
Emerging Markets | |
| 12,833 | | |
| 13,097 | | |
| -2 | % | |
| 12,163 | | |
| 6 | % |
Pharmaceutical
Services and Active Ingredients (PSAI) | |
| 7,839 | | |
| 7,758 | | |
| 1 | % | |
| 7,034 | | |
| 11 | % |
Others | |
| 1,214 | | |
| 701 | | |
| 73 | % | |
| 684 | | |
| 78 | % |
Total | |
| 72,148 | | |
| 67,700 | | |
| 7 | % | |
| 68,802 | | |
| 5 | % |
Revenue Mix by Segment [9M FY24]
| |
9MFY24 | | |
9MFY23 | | |
YoY | |
Particulars | |
(Rs.) | | |
(Rs.) | | |
Gr% | |
Global Generics | |
| 184,262 | | |
| 159,511 | | |
| 16 | % |
North America | |
| 97,245 | | |
| 76,383 | | |
| 27 | % |
Europe | |
| 15,326 | | |
| 12,644 | | |
| 21 | % |
India | |
| 35,141 | | |
| 36,113^ | | |
| -3 | % |
Emerging Markets | |
| 36,550 | | |
| 34,371 | | |
| 6 | % |
Pharmaceutical Services and Active Ingredients (PSAI) | |
| 21,582 | | |
| 21,282 | | |
| 1 | % |
Others | |
| 2,490 | | |
| 2,119 | | |
| 18 | % |
Total | |
| 208,334 | | |
| 182,911 | | |
| 14 | % |
^ includes divestment income in India in Q1FY23, excluding which
India YoY growth is at 4% and total company growth is at 15%
Consolidated Income Statement [Q3FY24]
| |
Q3FY24 | | |
Q3FY23 | | |
YoY | | |
Q2FY24 | | |
QoQ | |
Particulars | |
($) | | |
(Rs.) | | |
($) | | |
(Rs.) | | |
Gr % | | |
($) | | |
(Rs.) | | |
Gr% | |
Revenues | |
| 867 | | |
| 72,148 | | |
| 814 | | |
| 67,700 | | |
| 7 | | |
| 827 | | |
| 68,802 | | |
| 5 | |
Cost of Revenues | |
| 360 | | |
| 29,945 | | |
| 332 | | |
| 27,607 | | |
| 8 | | |
| 342 | | |
| 28,434 | | |
| 5 | |
Gross Profit | |
| 507 | | |
| 42,203 | | |
| 482 | | |
| 40,093 | | |
| 5 | | |
| 485 | | |
| 40,368 | | |
| 5 | |
% of revenues | |
| | | |
| 58.5 | % | |
| | | |
| 59.2 | % | |
| | | |
| | | |
| 58.7 | % | |
| | |
Operating Expenses | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Selling, General & Administrative expenses | |
| 243 | | |
| 20,228 | | |
| 216 | | |
| 17,981 | | |
| 12 | | |
| 226 | | |
| 18,795 | | |
| 8 | |
% of revenues | |
| | | |
| 28.0 | % | |
| | | |
| 26.6 | % | |
| | | |
| | | |
| 27.3 | % | |
| | |
Research & Development expenses | |
| 67 | | |
| 5,565 | | |
| 58 | | |
| 4,821 | | |
| 15 | | |
| 65 | | |
| 5,447 | | |
| 2 | |
% of revenues | |
| | | |
| 7.7 | % | |
| | | |
| 7.1 | % | |
| | | |
| | | |
| 7.9 | % | |
| | |
Impairment of non-current assets | |
| 1 | | |
| 110 | | |
| 2 | | |
| 134 | | |
| (18 | ) | |
| 1 | | |
| 55 | | |
| 100 | |
Other operating (income)/expense | |
| (12 | ) | |
| (967 | ) | |
| 9 | | |
| 732 | | |
| (232 | ) | |
| (22 | ) | |
| (1796 | ) | |
| (46 | ) |
Results from operating activities | |
| 208 | | |
| 17,267 | | |
| 197 | | |
| 16,425 | | |
| 5 | | |
| 215 | | |
| 17,867 | | |
| (3 | ) |
Net finance (income)/expense | |
| (12 | ) | |
| (963 | ) | |
| 2 | | |
| 139 | | |
| (793 | ) | |
| (15 | ) | |
| (1225 | ) | |
| (21 | ) |
Share of profit of equity accounted investees, net of tax | |
| (0 | ) | |
| (27 | ) | |
| (1 | ) | |
| (60 | ) | |
| (55 | ) | |
| (1 | ) | |
| (42 | ) | |
| (36 | ) |
Profit before income tax | |
| 219 | | |
| 18,257 | | |
| 196 | | |
| 16,346 | | |
| 12 | | |
| 230 | | |
| 19,134 | | |
| (5 | ) |
% of revenues | |
| | | |
| 25.3 | % | |
| | | |
| 24.1 | % | |
| | | |
| | | |
| 27.8 | % | |
| | |
Income tax expense | |
| 54 | | |
| 4,468 | | |
| 47 | | |
| 3875 | | |
| 15 | | |
| 52 | | |
| 4,334 | | |
| 3 | |
Profit for the period | |
| 166 | | |
| 13,789 | | |
| 150 | | |
| 12,471 | | |
| 11 | | |
| 178 | | |
| 14,800 | | |
| (7 | ) |
% of revenues | |
| | | |
| 19.1 | % | |
| | | |
| 18.4 | % | |
| | | |
| | | |
| 21.5 | % | |
| | |
|
Diluted Earnings Per Share (EPS) | |
| 0.99 | | |
| 82.68 | | |
| 0.90 | | |
| 74.95 | | |
| 10 | | |
| 1.07 | | |
| 88.78 | | |
| (7 | ) |
EBITDA Computation [Q3FY24] | |
*Includes income from Investments |
| |
Q3FY24 | | |
Q3FY23 | | |
Q2FY24 | |
Particulars | |
($) | | |
(Rs.) | | |
($) | | |
(Rs.) | | |
($) | | |
(Rs.) | |
Profit before Income Tax | |
| 219 | | |
| 18,257 | | |
| 196 | | |
| 16,346 | | |
| 230 | | |
| 19,134 | |
Interest (income) / expense - Net* | |
| (12 | ) | |
| (1,030 | ) | |
| (1 | ) | |
| (93 | ) | |
| (14 | ) | |
| (1,166 | ) |
Depreciation | |
| 29 | | |
| 2,437 | | |
| 27 | | |
| 2,245 | | |
| 29 | | |
| 2,437 | |
Amortization | |
| 16 | | |
| 1,333 | | |
| 12 | | |
| 1,026 | | |
| 16 | | |
| 1,353 | |
Impairment | |
| 1 | | |
| 110 | | |
| 2 | | |
| 134 | | |
| 1 | | |
| 55 | |
EBITDA | |
| 254 | | |
| 21,107 | | |
| 236 | | |
| 19,658 | | |
| 262 | | |
| 21,813 | |
% of revenues | |
| | | |
| 29.3 | % | |
| | | |
| 29.0 | % | |
| | | |
| 31.7 | % |
Consolidated
Income Statement [9MFY24]
| |
9MFY24 | | |
9MFY23 | | |
YoY | |
Particulars | |
($) | | |
(Rs.) | | |
($) | | |
(Rs.) | | |
Gr % | |
Revenues | |
| 2,504 | | |
| 208,334 | | |
| 2,199 | | |
| 182,911 | | |
| 14 | |
Cost of Revenues | |
| 1,036 | | |
| 86,210 | | |
| 956 | | |
| 79,565 | | |
| 8 | |
Gross Profit | |
| 1,468 | | |
| 122,124 | | |
| 1,242 | | |
| 103,346 | | |
| 18 | |
% of revenues | |
| | | |
| 58.6 | % | |
| | | |
| 56.5 | % | |
| | |
Operating Expenses | |
| | | |
| | | |
| | | |
| | | |
| | |
Selling, General & Administrative expenses | |
| 682 | | |
| 56,725 | | |
| 601 | | |
| 50,034 | | |
| 13 | |
% of revenues | |
| | | |
| 27.2 | % | |
| | | |
| 27.4 | % | |
| | |
Research & Development expenses | |
| 192 | | |
| 15,996 | | |
| 168 | | |
| 14,015 | | |
| 14 | |
% of revenues | |
| | | |
| 7.7 | % | |
| | | |
| 7.7 | % | |
| | |
Impairment of non-current assets | |
| 2 | | |
| 176 | | |
| 2 | | |
| 159 | | |
| 11 | |
Other operating (income)/expense | |
| (43 | ) | |
| (3,543 | ) | |
| (68 | ) | |
| (5,626 | ) | |
| (37 | ) |
Results from operating activities | |
| 634 | | |
| 52,770 | | |
| 538 | | |
| 44,764 | | |
| 18 | |
Net finance (income)/expense | |
| (36 | ) | |
| (2,972 | ) | |
| (25 | ) | |
| (2,054 | ) | |
| 45 | |
Share of profit of equity accounted investees | |
| (1 | ) | |
| (112 | ) | |
| (4 | ) | |
| (294 | ) | |
| (62 | ) |
Profit before income tax | |
| 671 | | |
| 55,854 | | |
| 566 | | |
| 47,112 | | |
| 19 | |
% of revenues | |
| | | |
| 26.8 | % | |
| | | |
| 25.8 | % | |
| | |
Income tax expense | |
| 159 | | |
| 13,240 | | |
| 140 | | |
| 11,637 | | |
| 14 | |
Profit for the period | |
| 512 | | |
| 42,614 | | |
| 426 | | |
| 35,475 | | |
| 20 | |
% of revenues | |
| | | |
| 20.5 | % | |
| | | |
| 19.4 | % | |
| | |
Diluted Earnings Per Share (EPS) | |
| 3.07 | | |
| 255.68 | | |
| 2.56 | | |
| 213.24 | | |
| 20 | |
EBITDA Computation [9MFY24] | |
*Includes income from Investments |
| |
9MFY24 | | |
9MFY23 | |
Particulars | |
($) | | |
(Rs.) | | |
($) | | |
(Rs.) | |
Profit before Income Tax | |
| 671 | | |
| 55,854 | | |
| 566 | | |
| 47,112 | |
Interest (income) / expense - Net* | |
| -35 | | |
| -2,881 | | |
| 1 | | |
| 52 | |
Depreciation | |
| 86 | | |
| 7,155 | | |
| 77 | | |
| 6,402 | |
Amortization | |
| 48 | | |
| 3,974 | | |
| 37 | | |
| 3,045 | |
Impairment | |
| 2 | | |
| 176 | | |
| 2 | | |
| 159 | |
EBITDA | |
| 773 | | |
| 64,278 | | |
| 682 | | |
| 56,769 | |
% of revenues | |
| | | |
| 30.9 | % | |
| | | |
| 31.0 | % |
Key Balance Sheet Items
| |
As on 31st Dec
2023 | | |
As on 30th Sep
2023 | | |
As on 31st Dec
2022 | |
Particulars | |
($) | | |
(Rs.) | | |
($) | | |
(Rs.) | | |
($) | | |
(Rs.) | |
Cash and cash equivalents and other investments | |
| 922 | | |
| 76,665 | | |
| 839 | | |
| 69,784 | | |
| 603 | | |
| 50,164 | |
Trade receivables | |
| 943 | | |
| 78,417 | | |
| 838 | | |
| 69,722 | | |
| 902 | | |
| 75,046 | |
Inventories | |
| 731 | | |
| 60,796 | | |
| 680 | | |
| 56,592 | | |
| 593 | | |
| 49,326 | |
Property, plant, and equipment | |
| 875 | | |
| 72,795 | | |
| 847 | | |
| 70,478 | | |
| 781 | | |
| 64,996 | |
Goodwill and Other Intangible assets | |
| 495 | | |
| 41,192 | | |
| 496 | | |
| 41,278 | | |
| 426 | | |
| 35,401 | |
Loans and borrowings (current & non-current) | |
| 239 | | |
| 19,851 | | |
| 159 | | |
| 13,230 | | |
| 212 | | |
| 17,663 | |
Trade payables | |
| 374 | | |
| 31,113 | | |
| 366 | | |
| 30,485 | | |
| 313 | | |
| 26,023 | |
Equity | |
| 3,220 | | |
| 267,850 | | |
| 3,042 | | |
| 253,086 | | |
| 2,648 | | |
| 220,273 | |
Key Business Highlights [Q3FY24]
|
· |
Acquired the MenoLabs branded portfolio of women’s health focused supplements in the U.S. |
|
· |
Exclusive collaboration with Coya Therapeutics for development and commercialization of COYA 302, an Investigational Combination Therapy for treatment of Amyotrophic Lateral Sclerosis (ALS) |
|
· |
Inspections completed by U.S. FDA at Bachupally facility. The response to the observations were submitted within stipulated timelines. |
|
- |
Product specific Pre-Approval Inspection (PAI) at biologics manufacturing facility in October 2023, post which a Form 483 with 9 observations was issued, |
|
- |
Routine cGMP inspection at formulations manufacturing facility (FTO-3) in October 2023, post which a Form 483 with 10 observations was issued and |
|
- |
GMP and Pre-Approval Inspection (PAI) at R&D unit in December 2023, post which a Form 483 with 3 observations was issued. |
ESG & other Highlights [Q3FY24]
|
· |
1st Indian pharma company to be featured in the Dow Jones Sustainability World Index for 2023 and retaining our place in the Emerging Markets Index for the 8th year in a row. |
|
· |
Awarded ‘Gold Medal’ status by EcoVadis. |
|
· |
MSCI ESG ratings upgraded from BB to BBB |
|
· |
Awarded Golden Peacock awards for Corporate Social Responsibility, 2023 and Excellence in Corporate Governance, 2023 |
|
· |
Received ICSI Corporate Social Responsibility Excellence award - 2023, in recognition of our contribution to society through our CSR initiatives. |
|
· |
1st Indian pharma company to pledge towards a plantation initiative covering 2,900 hectares by 2028 as part of the World Economic Forum’s 1t.org. |
Revenue Analysis [Q3FY24]
|
· |
Q3FY24 consolidated revenue at Rs. 72.1 billion, YoY growth of 7% and QoQ growth of 5%. The YoY growth was primarily driven by market share gains for our existing products in North America and continuation of our growth journey in Europe. |
Global Generics (GG)
|
· |
Q3FY24 revenue at Rs. 63.1 billion, YoY growth of 7% and QoQ growth of 3%. YoY growth was primarily driven by increase in volumes of our base business, new product launches, partially offset by price erosion in certain markets. Sequential growth was driven by increase in volumes of our base business, offset partially due to price erosion in certain markets. |
North America
|
· |
Q3FY24 revenue at Rs. 33.5 billion, YoY growth of 9% and QoQ growth of 5%. YoY growth was on account of market share expansion in certain existing key products and revenues from new product launches, partly offset by price erosion. Sequential growth was driven by net increase in volumes of our base business. |
|
· |
During the quarter, we launched 4 new products in the region, of which 2 were launched in the U.S. |
|
· |
During the quarter, we filed 2 new Abbreviated New Drug Applications (ANDAs) with the US Food and Drug Administration (USFDA). As of 31st December 2023, cumulatively 79 generic filings are pending for approval with the USFDA (75 ANDAs and 4 NDAs under 505(b)(2) route). Out of the pending 79 generic filings, 41 are Para IVs, and we believe 21 have ‘First to File’ status. |
Europe
|
· |
Q3FY24 revenue at Rs. 5.0 billion, YoY growth of 15% and QoQ decline of 6%. YoY growth was primarily on account of contribution from new product launches, improvement in base business volumes and favourable currency exchange rate movements, partly offset by price erosion. QoQ decline was primarily on account of price erosion in certain countries, partly offset by increase in volumes of our base business. |
|
- |
Germany at Rs. 2.7 billion, YoY growth of 21% and QoQ growth of 0.1%. |
|
- |
UK/OL at Rs. 1.4 billion, YoY growth of 9% and QoQ decline of 22%. |
|
- |
Rest of Europe at Rs. 0.9 billion, YoY growth of 11% and QoQ growth of 7%. |
|
· |
During the quarter, we launched 6 new products in the region. |
India
|
· |
Q3FY24 revenue at Rs. 11.8 billion, YoY growth of 5% and QoQ decline of 1%. YoY growth was largely attributable to revenues from new products launches while QoQ decline was largely on lower volumes in base business. |
|
· |
During the quarter, we launched 3 new brands in the country. |
Emerging Markets
|
· |
Q3FY24 revenue at Rs. 12.8 billion, YoY decline of 2% and QoQ growth of 6%. YoY decline is attributable to unfavorable forex movement, while QoQ growth was driven by volume gains for few existing products and partially offset by unfavorable currency exchange rate movements. |
|
- |
Revenue from Russia at Rs. 5.9 billion, YoY decline of 14% and QoQ growth of 2%. |
| | YoY decline was majorly due to unfavorable currency exchange
rate movements & high base business. |
| | QoQ growth was largely on account of improved volumes and increase
in certain brand prices, partially offset by unfavorable currency exchange rate movements. |
|
- |
Revenue from other CIS countries and Romania at Rs. 2.3 billion, YoY growth of 4% and QoQ growth of 7%. |
| | YoY growth was primarily on account of increase in price of certain
brands, new product launches and favorable forex. |
| | QoQ growth was driven by increase in base business volumes and
new launches. |
|
- |
Revenue from Rest of World (RoW) territories at Rs. 4.6 billion, YoY growth of 16% and QoQ growth of 10%. |
| | YoY growth was largely attributable to contribution from new
products. |
| | QoQ growth was primarily driven by increase in base business
volumes and new product launches. |
Pharmaceutical Services and Active Ingredients
(PSAI)
|
· |
Q3FY24 revenue at Rs. 7.8 billion, with a growth of 1% YoY and 11% QoQ. YoY growth was mainly driven by revenues from new products, favourable forex, partially offset by price decline and low business volumes. QoQ growth was driven by improved volumes in base business and contributions from new product launches. Excluding revenue in base period from COVID-19 products, PSAI business grew in double-digit. |
|
· |
During the quarter, we filed 38 Drug Master Files (DMFs) globally. |
Income Statement Highlights:
|
· |
Q3FY24 gross margin at 58.5% (GG: 61.9%, PSAI: 29.4%). Gross margin decreased by ~73 bps YoY and 18 bps sequentially. The decline in margin was primarily driven by lower prices for certain products in generic markets, partly offset by improvement in product mix and productivity. |
|
· |
Selling, general & administrative (SG&A) expenses for Q3FY24 at Rs. 20.2 billion, YoY increase of 12% and by 8% QoQ. The YoY SG&A spend increase is largely on account of investments in sales & marketing activities, digitalization capabilities, and new business initiatives. |
|
· |
Research & development (R&D) expenses in Q3FY24 at Rs. 5.6 billion. As % to Revenues – Q3FY24: 7.7% | Q2FY24: 7.9% | Q3FY23: 7.1%. R&D investments are driven by ongoing clinical trials on differentiated assets, as well as other developmental efforts to build a healthy pipeline of new products across our markets for both small molecules and biosimilars. |
|
· |
Other operating income for Q3FY24 at Rs. 0.9 billion compared to other operating expenses of Rs. 0.7 billion in Q3FY23. Other operating income was largely on account of sale of non-current assets. |
|
· |
Net Finance income for Q3FY24 at Rs.0.9 billion compared to net finance expense of Rs. 0.1 billion in Q3FY23. The higher income was primarily on account of profit on sale of units of mutual funds and other investments. |
|
· |
Profit before Tax for Q3FY24 at Rs. 18.3 billion, YoY growth of 12%. QoQ decline of 5%. |
|
· |
Profit after Tax for Q3FY24 at Rs. 13.8 billion, YoY growth of 11%. QoQ decline of 7%. The effective tax rate for the quarter has been 24.5% as compared to 23.7% in Q3FY23. The higher tax rate is mainly due to increase in the proportion of the Company's profits coming from higher tax jurisdictions, partly offset by adoption of corporate tax rate under section 115BAA of the Income Tax Act of India. |
|
· |
Diluted earnings per share for Q3FY24 is Rs. 82.68 |
Other Highlights:
|
· |
EBITDA for Q3FY24 at Rs. 21.1 billion and the EBITDA margin is 29.3%. |
|
· |
Operating Working Capital at Rs. 108.1 billion. |
|
· |
Capital expenditure for Q3FY24 at Rs. 3.1 billion. |
|
· |
Free cash-flow for Q3FY24 at Rs. 0.2 billion. |
|
· |
Net cash surplus at Rs. 59.1 billion as on December 31, 2023. |
|
· |
Debt to Equity is (0.21). |
|
· |
ROCE for the company is 37% (annualized). |
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
Free Cash Flow
| |
Three months ended Dec. 31, 2023 | |
Particulars | |
(Rs.) | |
Net cash generated from operating activities | |
| 10,762 | |
Less: | |
| | |
Taxes | |
| 6027 | |
Investments in PPE and Intangibles | |
| 4518 | |
Free Cash Flow | |
| 217 | |
Operating working capital
| |
As on 31st Dec
2023 | |
Particulars | |
(Rs.) | |
Inventories | |
| 60,796 | |
Trade Receivables | |
| 78,417 | |
Less: | |
| | |
Trade Payables | |
| 31,113 | |
Operating Working Capital | |
| 108,100 | |
Net cash surplus
| |
As on 31st Dec
2023 | |
Particulars | |
(Rs.) | |
Cash and cash equivalents | |
| 7,535 | |
Investments | |
| 69,130 | |
Short-term borrowings | |
| (12,343 | ) |
Long-term borrowings, non-current | |
| (6,152 | ) |
Less: | |
| | |
Restricted cash balance – Unclaimed dividend | |
| 122 | |
Lease liabilities (included in Long-term borrowings, non-current) | |
| (2,352 | ) |
Equity Investments (Included in Investments) | |
| 1328 | |
Net Cash Surplus | |
| 59,072 | |
Computation of Return on Capital Employed
| |
As on 31st Dec
2023 | |
Particulars | |
(Rs.) | |
Profit before tax | |
| 18,257 | |
Less: | |
| | |
Interest and Investment Income (Excluding forex gain/loss) | |
| 1,030 | |
Earnings Before Interest and taxes [A] | |
| 17,227 | |
| |
| | |
Average Capital Employed [B] | |
| 191,125 | |
| |
| | |
Annualized Return on Capital Employed (A/B) (Ratio) | |
| 37 | % |
Computation of capital employed
| |
Year Ended | |
Particulars | |
Dec 31,
2023 | | |
Mar 31,
2023 | |
Property Plant and Equipment | |
| 72,795 | | |
| 66,462 | |
Intangibles | |
| 36,905 | | |
| 30,849 | |
Goodwill | |
| 4,287 | | |
| 4,245 | |
Investment in equity accounted associates | |
| 4,218 | | |
| 4,702 | |
Other Current Assets | |
| 23,512 | | |
| 20,069 | |
Other investments | |
| 4,115 | | |
| 660 | |
Other non-current assets | |
| 1,128 | | |
| 800 | |
Inventories | |
| 60,796 | | |
| 48,670 | |
Trade Receivables | |
| 78,417 | | |
| 72,485 | |
Derivative Financial Instruments | |
| -16 | | |
| 1,095 | |
Less: | |
| | | |
| | |
Other Liabilities | |
| 43,159 | | |
| 42,320 | |
Provisions | |
| 5,394 | | |
| 5,513 | |
Trade payables | |
| 31,113 | | |
| 26,444 | |
Operating Capital Employed | |
| 206,491 | | |
| 175,760 | |
Average Capital Employed | |
| 191,125 | |
Computation of EBITDA
Refer page no. 3 & 4.
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: January 30, 2024
Time: 19:30 pm IST | 10:00 am EDT
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=1745002&linkSecurityString=a262ce748 |
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 February 6th, 2024. For play back dial in phone No: +91 22 7194 5757, and Playback Code is 61003.
Transcript: Transcript of the Earnings call will be available
on the Company’s website: www.drreddys.com
About Dr. Reddy’s: Dr. Reddy’s Laboratories Ltd.
(BSE: 500124, NSE: DRREDDY, NYSE: RDY, NSEIFSC: DRREDDY) is 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, 2023. 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
|
Dr. Reddy’s 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 and nine months ended 31 December 2023 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 | | |
| Nine
months ended | | |
| Year
ended | |
| | | |
| |
| 31.12.2023 | | |
| 30.09.2023 | | |
| 31.12.2022 | | |
| 31.12.2023 | | |
| 31.12.2022 | | |
| 31.03.2023 | |
Sl. No. | | |
Particulars | |
| (Unaudited) | | |
| (Unaudited) | | |
| (Unaudited) | | |
| (Unaudited) | | |
| (Unaudited) | | |
| (Audited) | |
| 1 | | |
Revenues | |
| 72,148 | | |
| 68,802 | | |
| 67,700 | | |
| 208,334 | | |
| 182,911 | | |
| 245,879 | |
| 2 | | |
Cost of revenues | |
| 29,945 | | |
| 28,434 | | |
| 27,607 | | |
| 86,210 | | |
| 79,565 | | |
| 106,536 | |
| 3 | | |
Gross profit (1 - 2) | |
| 42,203 | | |
| 40,368 | | |
| 40,093 | | |
| 122,124 | | |
| 103,346 | | |
| 139,343 | |
| 4 | | |
Selling, general and administrative expenses | |
| 20,228 | | |
| 18,795 | | |
| 17,981 | | |
| 56,725 | | |
| 50,034 | | |
| 68,026 | |
| 5 | | |
Research and development expenses | |
| 5,565 | | |
| 5,447 | | |
| 4,821 | | |
| 15,996 | | |
| 14,015 | | |
| 19,381 | |
| 6 | | |
Impairment of non-current assets | |
| 110 | | |
| 55 | | |
| 134 | | |
| 176 | | |
| 159 | | |
| 699 | |
| 7 | | |
Other (income)/expense,net | |
| (967 | ) | |
| (1,796 | ) | |
| 732 | | |
| (3,543 | ) | |
| (5,626 | ) | |
| (5,907 | ) |
| | | |
Total operating expenses | |
| 24,936 | | |
| 22,501 | | |
| 23,668 | | |
| 69,354 | | |
| 58,582 | | |
| 82,199 | |
| 8 | | |
Results from operating activities [(3) - (4 + 5 + 6 + 7)] | |
| 17,267 | | |
| 17,867 | | |
| 16,425 | | |
| 52,770 | | |
| 44,764 | | |
| 57,144 | |
| | | |
Finance income | |
| 1,357 | | |
| 1,578 | | |
| 279 | | |
| 4,090 | | |
| 3,128 | | |
| 4,281 | |
| | | |
Finance expense | |
| (394 | ) | |
| (353 | ) | |
| (418 | ) | |
| (1,118 | ) | |
| (1,074 | ) | |
| (1,428 | ) |
| 9 | | |
Finance income/(expense),net | |
| 963 | | |
| 1,225 | | |
| (139 | ) | |
| 2,972 | | |
| 2,054 | | |
| 2,853 | |
| 10 | | |
Share of profit of equity accounted investees, net of tax | |
| 27 | | |
| 42 | | |
| 60 | | |
| 112 | | |
| 294 | | |
| 370 | |
| 11 | | |
Profit before tax (8 + 9 + 10) | |
| 18,257 | | |
| 19,134 | | |
| 16,346 | | |
| 55,854 | | |
| 47,112 | | |
| 60,367 | |
| 12 | | |
Tax expense,net | |
| 4,468 | | |
| 4,334 | | |
| 3,875 | | |
| 13,240 | | |
| 11,637 | | |
| 15,300 | |
| 13 | | |
Profit for the period/year (11 -12) | |
| 13,789 | | |
| 14,800 | | |
| 12,471 | | |
| 42,614 | | |
| 35,475 | | |
| 45,067 | |
| 14 | | |
Earnings per share: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | | |
Basic earnings per share of Rs.5/- each | |
| 82.81 | | |
| 88.96 | | |
| 75.09 | | |
| 256.17 | | |
| 213.69 | | |
| 271.43 | |
| | | |
Diluted earnings per share of Rs.5/- each | |
| 82.68 | | |
| 88.78 | | |
| 74.95 | | |
| 255.68 | | |
| 213.24 | | |
| 270.85 | |
| | | |
| |
| (Not annualised) | | |
| (Not annualised) | | |
| (Not annualised) | | |
| (Not annualised) | | |
| (Not annualised) | | |
| | |
Segment information | |
All amounts in Indian Rupees millions | |
| | | |
| |
| Quarter
ended | | |
| Nine
months ended | | |
| Year
ended | |
| | | |
| |
| 31.12.2023 | | |
| 30.09.2023 | | |
| 31.12.2022 | | |
| 31.12.2023 | | |
| 31.12.2022 | | |
| 31.03.2023 | |
Sl. No. | | |
Particulars | |
| (Unaudited) | | |
| (Unaudited) | | |
| (Unaudited) | | |
| (Unaudited) | | |
| (Unaudited) | | |
| (Audited) | |
| | | |
Segment wise revenue and results: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| 1 | | |
Segment revenue: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | | |
a) Pharmaceutical Services and Active Ingredients | |
| 10,390 | | |
| 9,446 | | |
| 10,142 | | |
| 29,054 | | |
| 26,385 | | |
| 36,646 | |
| | | |
b) Global Generics | |
| 63,095 | | |
| 61,084 | | |
| 59,241 | | |
| 184,262 | | |
| 159,511 | | |
| 213,768 | |
| | | |
c) Others | |
| 1,214 | | |
| 684 | | |
| 701 | | |
| 2,490 | | |
| 2,118 | | |
| 3,042 | |
| | | |
Total | |
| 74,699 | | |
| 71,214 | | |
| 70,084 | | |
| 215,806 | | |
| 188,014 | | |
| 253,456 | |
| | | |
Less: Inter-segment revenues | |
| 2,551 | | |
| 2,412 | | |
| 2,384 | | |
| 7,472 | | |
| 5,103 | | |
| 7,577 | |
| | | |
Net revenues | |
| 72,148 | | |
| 68,802 | | |
| 67,700 | | |
| 208,334 | | |
| 182,911 | | |
| 245,879 | |
| | | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| 2 | | |
Segment results: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | | |
Gross profit from each segment | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | | |
a) Pharmaceutical Services and Active Ingredients | |
| 2,306 | | |
| 1,254 | | |
| 1,409 | | |
| 4,569 | | |
| 2,752 | | |
| 4,715 | |
| | | |
b) Global Generics | |
| 39,075 | | |
| 38,873 | | |
| 38,255 | | |
| 116,335 | | |
| 99,221 | | |
| 132,719 | |
| | | |
c) Others | |
| 822 | | |
| 241 | | |
| 429 | | |
| 1,220 | | |
| 1,373 | | |
| 1,909 | |
| | | |
Total | |
| 42,203 | | |
| 40,368 | | |
| 40,093 | | |
| 122,124 | | |
| 103,346 | | |
| 139,343 | |
| | | |
Less: Selling and other un-allocable expenditure, net of other income | |
| 23,946 | | |
| 21,234 | | |
| 23,747 | | |
| 66,270 | | |
| 56,234 | | |
| 78,976 | |
| | | |
Total profit before tax | |
| 18,257 | | |
| 19,134 | | |
| 16,346 | | |
| 55,854 | | |
| 47,112 | | |
| 60,367 | |
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.
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 30
January 2024. The Auditors have carried out a limited review on the unaudited consolidated financial results and issued an unmodified
report thereon. |
| 2 | Revenues for the year ended 31 March 2023 includes: a. Rs.2,640 million from sale of certain
non-core dermatology brands to Eris Lifesciences Limited;
b. Rs.1,399 million from sale of brands Styptovit-E,
Finast, Finast-T and Dynapres to Torrent Pharmaceuticals Limited; and
c. Rs.902 million from sale of brands Z&D, Pedicloryl,
Pecef and Ezinapi to J B Chemicals and Pharmaceuticals Limited.
The amounts recognised above are adjusted for expected
sales returns. These transactions pertain to Company’s Global Generics segment.
|
| 3 | During
the quarter and nine months ended 31 December 2023, an amount of Rs.1,148 million and Rs.3,422 million, respectively, and during the
quarter and nine months ended 31 December 2022, an amount of Rs.435 million and Rs.2,806 million, respectively, representing government
grants have been accounted as a reduction from Cost of revenues. |
| 4 | “Other
(income)/expense, net” for the nine months ended 31 December 2023 includes 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. |
| 5 | “Other
(income)/expense, net” for quarter ended 30 September 2023 includes Rs.984 million recognised 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. |
| 6 | Included
in “Other (income)/expense, net” for the year ended 31 March 2023, is an amount of Rs.991 million representing the Loss on
sale of Assets recognised in December 2022, pursuant to agreement dated 16 December 2022 with Delpharm Development Leiden B.V (Delpharm)
for transfer of its certain assets, liabilities and employees at its site at Leiden, Netherlands.This transaction pertains to Company’s
Global Generics segment. |
| 7 | "Other
(income)/expense, net" for the nine months ended 31 December 2022 includes an amount of Rs.5,638 million (U.S.$71.39 million discounted
to present value) recognised in June 2022 towards the settlement of an ongoing litigation relating to launch of a product with Indivior
Inc., Indivior UK Limited and Aquestive Therapeutics, Inc. |
| 8 | The
Company has considered the impact of recent tax regulations and developments, including updates to its estimate on the impact of adoption
of the Taxation Laws (Amendment) Act 2019, in determining its “Tax expense/(benefit)” for the nine months ended 31 December
2023 and year ended 31 March 2023. |
| 9 | The
Company considered the uncertainties relating to the 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. |
| 10 | 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 made presentations to the SEC and the
DOJ in relation to the investigation with respect to certain countries during the previous fiscal years. The Company also made a presentation
to the SEC and the DOJ in relation to its Global Compliance Framework, including the ongoing enhancement initiatives, during the year
ended 31 March 2023. The Company 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. |
Place: Hyderabad
Date: 30 January 2024 |
|
By order of the Board
For Dr. Reddy's Laboratories Limited
G V Prasad
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 and Year to Date Unaudited Consolidated 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 Consolidated Financial Results for the
quarter and nine months ended December 31, 2023’ (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 associate
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 the 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
| 1. | Aurigene Oncology limited (Formerly, Aurigene Discovery Technologies 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 (Formerly, Imperial Credit Private Limited) |
| 9. | Industrias Quimicas Falcon de Mexico, S.A.de C.V. |
| 10. | Svaas Wellness Limited |
| 11. | Aurigene Discovery Technologies (Malaysia) Sdn. Bhd. |
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 |
|
| 12. | Aurigene Pharmaceutical Services Limited |
| 13. | beta Institut gemeinnützige GmbH |
| 14. | betapharm Arzneimittel GmbH |
| 15. | Chirotech Technology Limited (Under the process of liquidation) |
| 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. |
| 40. | Dr. Reddy’s Laboratories LLC |
| 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 (From 25 September 2023) |
| 1. | O2 Renewable Energy IX Private Limited (From November 10, 2023) |
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 Employees ESOS Trust |
| 3. | Dr. Reddy's Research Foundation |
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: 24213271BKEKYN6989 |
Place: Visakhapatnam |
Date: January 30, 2024 |
|
Dr. Reddy’s 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 AND NINE MONTHS ENDED 31 DECEMBER 2023
| | |
| |
All amounts in Indian Rupees millions | |
| | | |
| |
| Quarter
ended | | |
| Nine
months ended | |
| Year
ended | |
| | | |
| |
| 31.12.2023 | | |
| 30.09.2023 | | |
| 31.12.2022 | | |
| 31.12.2023 | | |
| 31.12.2022 | | |
| 31.03.2023 | |
Sl. No. | | |
Particulars | |
| (Unaudited) | | |
| (Unaudited) | | |
| (Unaudited) | | |
| (Unaudited) | | |
| (Unaudited) | | |
| (Audited) | |
| | | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| 1 | | |
Revenue from operations | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | | |
a) Net sales/income from operations | |
| 69,647 | | |
| 67,348 | | |
| 66,353 | | |
| 203,138 | | |
| 176,165 | | |
| 234,595 | |
| | | |
b) License fees and service income | |
| 2,501 | | |
| 1,454 | | |
| 1,346 | | |
| 5,196 | | |
| 6,745 | | |
| 11,284 | |
| | | |
c) Other operating income | |
| 220 | | |
| 224 | | |
| 199 | | |
| 639 | | |
| 635 | | |
| 818 | |
| | | |
Total revenue from operations | |
| 72,368 | | |
| 69,026 | | |
| 67,898 | | |
| 208,973 | | |
| 183,545 | | |
| 246,697 | |
| 2 | | |
Other income | |
| 2,162 | | |
| 3,150 | | |
| 587 | | |
| 6,984 | | |
| 9,170 | | |
| 10,555 | |
| 3 | | |
Total income (1 + 2) | |
| 74,530 | | |
| 72,176 | | |
| 68,485 | | |
| 215,957 | | |
| 192,715 | | |
| 257,252 | |
| 4 | | |
Expenses | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | | |
a) Cost of materials consumed | |
| 11,412 | | |
| 9,559 | | |
| 12,891 | | |
| 33,939 | | |
| 31,470 | | |
| 42,198 | |
| | | |
b) Purchase of stock-in-trade | |
| 12,083 | | |
| 11,378 | | |
| 9,160 | | |
| 32,232 | | |
| 26,004 | | |
| 33,670 | |
| | | |
c) Changes in inventories of finished goods, work-in-progress and stock-in-trade | |
| (1,735 | ) | |
| (907 | ) | |
| (2,037 | ) | |
| (5,005 | ) | |
| 123 | | |
| 709 | |
| | | |
d) Employee benefits expense | |
| 12,764 | | |
| 12,803 | | |
| 11,732 | | |
| 37,464 | | |
| 33,706 | | |
| 46,466 | |
| | | |
e) Depreciation and amortisation expense | |
| 3,735 | | |
| 3,755 | | |
| 3,237 | | |
| 11,023 | | |
| 9,347 | | |
| 12,502 | |
| | | |
f) Impairment of non-current assets | |
| 110 | | |
| 55 | | |
| 134 | | |
| 176 | | |
| 159 | | |
| 699 | |
| | | |
g) Finance costs | |
| 394 | | |
| 353 | | |
| 418 | | |
| 1,118 | | |
| 1,074 | | |
| 1,428 | |
| | | |
h) Selling and other expenses | |
| 17,503 | | |
| 16,055 | | |
| 16,633 | | |
| 49,164 | | |
| 43,933 | | |
| 59,465 | |
| | | |
Total expenses | |
| 56,266 | | |
| 53,051 | | |
| 52,168 | | |
| 160,111 | | |
| 145,816 | | |
| 197,137 | |
| 5 | | |
Profit before tax and before share of equity accounted investees(3 - 4) | |
| 18,264 | | |
| 19,125 | | |
| 16,317 | | |
| 55,846 | | |
| 46,899 | | |
| 60,115 | |
| | | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| 6 | | |
Share of profit of equity accounted investees, net of tax | |
| 27 | | |
| 42 | | |
| 60 | | |
| 112 | | |
| 294 | | |
| 370 | |
| 7 | | |
Profit before tax (5+6) | |
| 18,291 | | |
| 19,167 | | |
| 16,377 | | |
| 55,958 | | |
| 47,193 | | |
| 60,485 | |
| 8 | | |
Tax expense/(benefit): | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | | |
a) Current tax | |
| 3,538 | | |
| 5,901 | | |
| 3,096 | | |
| 16,636 | | |
| 3,865 | | |
| 8,144 | |
| | | |
b) Deferred tax | |
| 944 | | |
| (1,556 | ) | |
| 842 | | |
| (3,359 | ) | |
| 7,857 | | |
| 7,268 | |
| 9 | | |
Net profit after taxes and share of profit of associates (7 - 8) | |
| 13,809 | | |
| 14,822 | | |
| 12,439 | | |
| 42,681 | | |
| 35,471 | | |
| 45,073 | |
| 10 | | |
Other comprehensive income | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | | |
a) (i) Items that will not be reclassified subsequently to profit or loss | |
| 132 | | |
| (222 | ) | |
| (69 | ) | |
| 16 | | |
| (743 | ) | |
| (660 | ) |
| | | |
(ii) Income tax relating to items that will not be reclassified to profit or loss | |
| - | | |
| - | | |
| (31 | ) | |
| - | | |
| (31 | ) | |
| (43 | ) |
| | | |
b) (i) Items that will be reclassified subsequently to profit or loss | |
| 782 | | |
| (1,113 | ) | |
| 2,404 | | |
| (184 | ) | |
| (920 | ) | |
| 276 | |
| | | |
(ii) Income tax relating to items that will be reclassified to profit or loss | |
| 78 | | |
| 201 | | |
| (600 | ) | |
| 69 | | |
| 648 | | |
| 306 | |
| | | |
Total other comprehensive income | |
| 992 | | |
| (1,134 | ) | |
| 1,704 | | |
| (99 | ) | |
| (1,046 | ) | |
| (121 | ) |
| 11 | | |
Total comprehensive income (9 + 10) | |
| 14,801 | | |
| 13,688 | | |
| 14,143 | | |
| 42,582 | | |
| 34,425 | | |
| 44,952 | |
| 12 | | |
Paid-up equity share capital (face value Rs. 5/- each) | |
| 834 | | |
| 834 | | |
| 833 | | |
| 834 | | |
| 833 | | |
| 833 | |
| 13 | | |
Other equity | |
| | | |
| | | |
| | | |
| | | |
| | | |
| 232,028 | |
| 14 | | |
Earnings per equity share (face value Rs. 5/- each) | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | | |
Basic | |
| 82.94 | | |
| 89.09 | | |
| 74.91 | | |
| 256.57 | | |
| 213.68 | | |
| 271.47 | |
| | | |
Diluted | |
| 82.81 | | |
| 88.91 | | |
| 74.76 | | |
| 256.08 | | |
| 213.23 | | |
| 270.90 | |
| | | |
| |
| (Not annualised) | | |
| (Not annualised) | | |
| (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 | | |
Nine
months ended | | |
Year
ended | |
| | |
| |
31.12.2023 | | |
30.09.2023 | | |
31.12.2022 | | |
31.12.2023 | | |
31.12.2022 | | |
31.03.2023 | |
Sl. No. | | |
Particulars | |
(Unaudited) | | |
(Unaudited) | | |
(Unaudited) | | |
(Unaudited) | | |
(Unaudited) | | |
(Audited) | |
| | | |
Segment wise revenue and results: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| 1 | | |
Segment revenue : | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | | |
a) Pharmaceutical Services and Active Ingredients | |
| 10,580 | | |
| 9,625 | | |
| 10,304 | | |
| 29,570 | | |
| 26,797 | | |
| 37,195 | |
| | | |
b) Global Generics | |
| 63,124 | | |
| 61,130 | | |
| 59,276 | | |
| 184,384 | | |
| 159,656 | | |
| 213,953 | |
| | | |
c) Others | |
| 1,215 | | |
| 683 | | |
| 702 | | |
| 2,491 | | |
| 2,195 | | |
| 3,126 | |
| | | |
Total | |
| 74,919 | | |
| 71,438 | | |
| 70,282 | | |
| 216,445 | | |
| 188,648 | | |
| 254,274 | |
| | | |
Less: Inter-segment revenue | |
| 2,551 | | |
| 2,412 | | |
| 2,384 | | |
| 7,472 | | |
| 5,103 | | |
| 7,577 | |
| | | |
Total revenue from operations | |
| 72,368 | | |
| 69,026 | | |
| 67,898 | | |
| 208,973 | | |
| 183,545 | | |
| 246,697 | |
| 2 | | |
Segment results: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | | |
Gross profit from each segment | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | | |
a) Pharmaceutical Services and Active Ingredients | |
| 2,307 | | |
| 1,260 | | |
| 1,413 | | |
| 4,580 | | |
| 2,763 | | |
| 4,733 | |
| | | |
b) Global Generics | |
| 39,077 | | |
| 38,872 | | |
| 38,254 | | |
| 116,335 | | |
| 99,221 | | |
| 132,719 | |
| | | |
c) Others | |
| 823 | | |
| 242 | | |
| 430 | | |
| 1,221 | | |
| 1,374 | | |
| 1,909 | |
| | | |
Total | |
| 42,207 | | |
| 40,374 | | |
| 40,097 | | |
| 122,136 | | |
| 103,358 | | |
| 139,361 | |
| | | |
Less: Selling and other un-allocable expenditure/(income), net | |
| 23,916 | | |
| 21,207 | | |
| 23,721 | | |
| 66,178 | | |
| 56,166 | | |
| 78,876 | |
| | | |
Total profit before tax | |
| 18,291 | | |
| 19,167 | | |
| 16,377 | | |
| 55,958 | | |
| 47,193 | | |
| 60,485 | |
Global Generics includes operations of Biologics business.
Inter-segment revenue represents sales 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 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 30 January 2024. The Statutory Auditors have carried out a limited review on the
unaudited consolidated financial results and issued an unmodified report thereon. |
| 2 | License
fee and service income for the year ended 31 March 2023 includes: a. Rs. 2,640 million from sale of certain non-core dermatology
brands to Eris Lifesciences Limited; b. Rs. 1,399 million from sale of brands Styptovit-E, Finast, Finast-T and Dynapres to Torrent Pharmaceuticals
Limited; and c. Rs. 902 million from sale of brands Z&D, Pedicloryl, Pecef and Ezinapi to J B Chemicals and Pharmaceuticals Limited.
The amounts recognised above are adjusted for expected sales returns. These transactions pertain to Company’s Global Generics segment. |
| 3 | “Other
income” for the nine months ended 31 December 2023 includes 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. |
| 4 | “Other
income” for quarter ended 30 September 2023 includes Rs.984 million recognised 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. |
| 5 | “Other
income” for the year ended 31 March 2023 includes an amount of Rs.5,638 million (U.S.$71.39 discounted to present value), recognised
in June 2022 towards the settlement of an ongoing litigation relating to launch of a product with Indivior Inc., Indivior UK Limited
and Aquestive Therapeutics, Inc. |
| 6 | During
the quarter and nine months ended 31 December 2023 , an amount of Rs.1,148 million and Rs.3,422 million, respectively and during quarter
and nine months ended 31 December 2022, an amount of Rs.435 million and Rs.2,806 million, respectively, representing government grants
has been accounted as a reduction from Cost of materials consumed. |
| 7 | Included
in “Selling and other expenses” for the year ended 31 March 2023, is an amount of Rs. 991 million representing the Loss on
sale of Assets recognised in December 2022, pursuant to agreement with Delpharm Development Leiden B.V (Delpharm) for transfer of its
certain assets, liabilities and employees at its site at Leiden, Netherlands.This transaction pertains to Company’s Global Generics
segment. |
| 8 | The
Company has considered the impact of recent tax regulations and developments, including updates to its estimate on the impact of adoption
of the Taxation Laws (Amendment) Act 2019, in determining its “Tax expense/(benefit)” for the nine months ended 31 December
2023 and year ended 31 March 2023. |
DR. REDDY'S LABORATORIES LIMITED
| 9 | 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 made presentations to the SEC and the
DOJ in relation to the investigation with respect to certain countries during the previous fiscal years. The Company also made a presentation
to the SEC and the DOJ in relation to its Global Compliance Framework, including the ongoing enhancement initiatives, during the year
ended 31 March 2023. The Company 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. |
| 10 | The
Company considered the uncertainties relating to the 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. |
|
|
|
|
By order of the Board |
|
|
For Dr. Reddy's Laboratories Limited |
|
|
|
|
|
|
Place: |
Hyderabad |
G V Prasad |
Date: |
30 January 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 and Year to Date 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 and nine months ended 31 December 2023’ (the “Statement”) of Dr. Reddy’s
Laboratories Limited (the “Company”) 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
per Shankar Srinivasan |
|
Partner |
Membership No.: 213271 |
|
UDIN: 24213271BKEKYI4480. |
Place: Visakhapatnam |
Date: January 30, 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
|
Dr. Reddy’s 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 AND NINE MONTHS ENDED 31 DECEMBER 2023
All amounts in Indian Rupees millions | |
| | |
| |
Quarter ended | | |
Nine months ended | | |
Year ended | |
| | |
| |
31.12.2023 | | |
30.09.2023 | | |
31.12.2022 | | |
31.12.2023 | | |
31.12.2022 | | |
31.03.2023 | |
Sl. No. | | |
Particulars | |
(Unaudited) | | |
(Unaudited) | | |
(Unaudited) | | |
(Unaudited) | | |
(Unaudited) | | |
(Audited) | |
| 1 | | |
Revenue from operations | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | | |
a) Net sales/income from operations | |
| 40,389 | | |
| 48,037 | | |
| 38,624 | | |
| 142,460 | | |
| 120,498 | | |
| 162,989 | |
| | | |
b) License fees and service income | |
| 442 | | |
| 154 | | |
| 172 | | |
| 763 | | |
| 3,115 | | |
| 6,002 | |
| | | |
c) Other operating income | |
| 199 | | |
| 196 | | |
| 180 | | |
| 567 | | |
| 472 | | |
| 634 | |
| | | |
Total revenue from operations | |
| 41,030 | | |
| 48,387 | | |
| 38,976 | | |
| 143,790 | | |
| 124,085 | | |
| 169,625 | |
| | | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| 2 | | |
Other income | |
| 2,276 | | |
| 2,231 | | |
| 514 | | |
| 6,651 | | |
| 5,343 | | |
| 5,913 | |
| | | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | | |
Total income (1 + 2) | |
| 43,306 | | |
| 50,618 | | |
| 39,490 | | |
| 150,441 | | |
| 129,428 | | |
| 175,538 | |
| | | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| 3 | | |
Expenses | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | | |
a) Cost of materials consumed | |
| 8,187 | | |
| 7,512 | | |
| 8,659 | | |
| 23,838 | | |
| 23,073 | | |
| 31,614 | |
| | | |
b) Purchase of stock-in-trade | |
| 5,569 | | |
| 4,992 | | |
| 4,874 | | |
| 14,403 | | |
| 14,101 | | |
| 17,793 | |
| | | |
c) Changes in inventories of finished goods, work-in-progress and stock-in-trade | |
| (651 | ) | |
| (1,054 | ) | |
| (1,281 | ) | |
| (1,868 | ) | |
| 227 | | |
| 1,295 | |
| | | |
d) Employee benefits expense | |
| 7,823 | | |
| 7,837 | | |
| 7,084 | | |
| 23,062 | | |
| 20,675 | | |
| 28,326 | |
| | | |
e) Depreciation and amortisation expense | |
| 2,464 | | |
| 2,458 | | |
| 2,388 | | |
| 7,294 | | |
| 6,865 | | |
| 9,232 | |
| | | |
f) Impairment of non-current assets | |
| - | | |
| - | | |
| 10 | | |
| - | | |
| 10 | | |
| 51 | |
| | | |
g) Finance costs | |
| 56 | | |
| 58 | | |
| 28 | | |
| 159 | | |
| 143 | | |
| 169 | |
| | | |
h) Selling and other expenses | |
| 13,539 | | |
| 12,809 | | |
| 12,879 | | |
| 39,032 | | |
| 35,040 | | |
| 48,398 | |
| | | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | | |
Total expenses | |
| 36,987 | | |
| 34,612 | | |
| 34,641 | | |
| 105,920 | | |
| 100,134 | | |
| 136,878 | |
| | | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| 4 | | |
Profit before tax (1 + 2 - 3) | |
| 6,319 | | |
| 16,006 | | |
| 4,849 | | |
| 44,521 | | |
| 29,294 | | |
| 38,660 | |
| | | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| 5 | | |
Tax expense/(benefit) | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | | |
a) Current tax | |
| 1,569 | | |
| 3,960 | | |
| 1,988 | | |
| 10,916 | | |
| 6,322 | | |
| 8,641 | |
| | | |
b) Deferred tax | |
| (2 | ) | |
| 120 | | |
| (385 | ) | |
| 533 | | |
| 3,568 | | |
| 3,891 | |
| | | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| 6 | | |
Net profit for the period/year (4 - 5) | |
| 4,752 | | |
| 11,926 | | |
| 3,246 | | |
| 33,072 | | |
| 19,404 | | |
| 26,128 | |
| | | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| 7 | | |
Other comprehensive income | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | | |
a) (i) Items that will not be reclassified to profit or loss | |
| (8 | ) | |
| 1 | | |
| 2 | | |
| (6 | ) | |
| 3 | | |
| 89 | |
| | | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | | |
(ii) Income tax relating to items that will not be reclassified to profit or loss | |
| - | | |
| - | | |
| (31 | ) | |
| - | | |
| (31 | ) | |
| (53 | ) |
| | | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | | |
b) (i) Items that will be reclassified to profit or loss | |
| 24 | | |
| (802 | ) | |
| 1,296 | | |
| (257 | ) | |
| (2,278 | ) | |
| (928 | ) |
| | | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | | |
(ii) Income tax relating to items that will be reclassified to profit or loss | |
| (6 | ) | |
| 201 | | |
| (551 | ) | |
| 65 | | |
| 697 | | |
| 358 | |
| | | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | | |
Total other comprehensive income | |
| 10 | | |
| (600 | ) | |
| 716 | | |
| (198 | ) | |
| (1,609 | ) | |
| (534 | ) |
| | | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| 8 | | |
Total comprehensive income (6 + 7) | |
| 4,762 | | |
| 11,326 | | |
| 3,962 | | |
| 32,874 | | |
| 17,795 | | |
| 25,594 | |
| | | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| 9 | | |
Paid-up equity share capital (face value Rs. 5/- each) | |
| 834 | | |
| 834 | | |
| 833 | | |
| 834 | | |
| 833 | | |
| 833 | |
| | | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| 10 | | |
Other equity | |
| | | |
| | | |
| | | |
| | | |
| | | |
| 203,909 | |
| | | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| 11 | | |
Earnings per equity share (face value Rs. 5/- each) | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | | |
Basic | |
| 28.55 | | |
| 71.68 | | |
| 19.54 | | |
| 198.81 | | |
| 116.88 | | |
| 157.37 | |
| | | |
Diluted | |
| 28.50 | | |
| 71.54 | | |
| 19.50 | | |
| 198.43 | | |
| 116.63 | | |
| 157.03 | |
| | | |
| |
| (Not annualised) | | |
| (Not annualised) | | |
| (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 | | |
Nine months ended | | |
Year ended | |
| | |
| |
31.12.2023 | | |
30.09.2023 | | |
31.12.2022 | | |
31.12.2023 | | |
31.12.2022 | | |
31.03.2023 | |
Sl. No. | | |
Particulars | |
(Unaudited) | | |
(Unaudited) | | |
(Unaudited) | | |
(Unaudited) | | |
(Unaudited) | | |
(Audited) | |
| | | |
Segment wise revenue and results | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| 1 | | |
Segment revenue | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | | |
a) Pharmaceutical Services and Active Ingredients | |
| 7,658 | | |
| 6,357 | | |
| 6,357 | | |
| 20,900 | | |
| 18,785 | | |
| 27,896 | |
| | | |
b) Global Generics | |
| 35,726 | | |
| 43,995 | | |
| 34,298 | | |
| 129,399 | | |
| 109,348 | | |
| 147,999 | |
| | | |
c) Others | |
| 66 | | |
| 128 | | |
| 110 | | |
| 325 | | |
| 368 | | |
| 497 | |
| | | |
Total | |
| 43,450 | | |
| 50,480 | | |
| 40,765 | | |
| 150,624 | | |
| 128,501 | | |
| 176,392 | |
| | | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | | |
Less: Inter-segment revenue | |
| 2,420 | | |
| 2,093 | | |
| 1,789 | | |
| 6,834 | | |
| 4,416 | | |
| 6,767 | |
| | | |
Total revenue from operations | |
| 41,030 | | |
| 48,387 | | |
| 38,976 | | |
| 143,790 | | |
| 124,085 | | |
| 169,625 | |
| | | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| 2 | | |
Segment results | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | | |
Profit/(loss) before tax and interest from each segment | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | | |
a) Pharmaceutical Services and Active Ingredients | |
| (397 | ) | |
| (540 | ) | |
| (671 | ) | |
| (1,533 | ) | |
| (1,822 | ) | |
| (1,336 | ) |
| | | |
b) Global Generics | |
| 6,832 | | |
| 16,174 | | |
| 7,498 | | |
| 45,498 | | |
| 37,662 | | |
| 46,716 | |
| | | |
c) Others | |
| 198 | | |
| 108 | | |
| (97 | ) | |
| 297 | | |
| (103 | ) | |
| (154 | ) |
| | | |
Total | |
| 6,633 | | |
| 15,742 | | |
| 6,730 | | |
| 44,262 | | |
| 35,737 | | |
| 45,226 | |
| | | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | | |
Less: (i) Finance costs | |
| 56 | | |
| 58 | | |
| 28 | | |
| 159 | | |
| 143 | | |
| 169 | |
| | | |
(ii) Other un-allocable expenditure/(income), net | |
| 258 | | |
| (322 | ) | |
| 1,853 | | |
| (418 | ) | |
| 6,300 | | |
| 6,397 | |
| | | |
Total profit before tax | |
| 6,319 | | |
| 16,006 | | |
| 4,849 | | |
| 44,521 | | |
| 29,294 | | |
| 38,660 | |
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 30 January 2024.
The Statutory Auditors have carried out a limited review on the unaudited standalone financial results and issued unmodified report thereon. |
| 2 | License fee and service income for the year ended 31 March 2023
includes:
a. Rs. 2,640 million from sale of certain non-core dermatology brands in India to Eris Lifesciences Limited;
b. Rs. 1,399 million from sale of brands Styptovit-E, Finast, Finast-T and Dynapres to Torrent Pharmaceuticals Limited; and
c. Rs. 902 million from sale of brands Z&D, Pedicloryl, Pecef and Ezinapi to J B Chemicals and Pharmaceuticals Limited;
The amounts recognised above are adjusted for expected sales returns. These transactions pertain to the Company’s Global Generics
segment. |
| 3 | “Other income” for the nine months ended 31 December
2023 includes 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. |
| 4 | “Other income” for the nine months ended 31 December
2023 includes dividend income of Rs. 443 million declared by Kunshan Rotan Reddy Pharmaceutical Company Limited. |
| 5 | During the quarter and nine months ended 31 December 2023, an
amount of Rs. 1,142 million and Rs. 3,405 million respectively and during the quarter and nine months ended 31 December 2022, an amount
of Rs. 435 million and Rs. 2,806 million respectively, representing government grants has been accounted as a reduction from cost of
material consumed. |
| 6 | The Company has considered the impact of recent tax regulations
and developments, including updates to its estimate on the impact of adoption of the Taxation Laws (Amendment) Act 2019, in determining
its “Tax expense/(benefit)” for the nine months ended 31 December 2023 and year ended 31 March 2023. |
| 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 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 made presentations to the SEC and the DOJ in relation to the investigation with respect to certain countries during the previous
fiscal years. The Company also made a presentation to the SEC and the DOJ in relation to its Global Compliance Framework, including the
ongoing enhancement initiatives, during the year ended 31 March 2023. The Company 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. |
|
|
|
|
By order of the Board |
|
|
For Dr. Reddy's Laboratories Limited |
|
|
|
|
|
|
Place: |
Hyderabad |
G V Prasad |
Date: |
30 January 2024 |
Co-Chairman & Managing Director |
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