HYDERABAD, India
Dr. Reddy’s Laboratories Ltd. (BSE: 500124 | NSE: DRREDDY | NYSE: RDY) today announced its consolidated financial results for the fourth quarter and full year ended March 31, 2017 under International Financial Reporting Standards (IFRS).
FY17: Key Highlights
- Revenues at Rs. 140.8 billion: YoY decline: 9%
- Gross Profit Margin at 55.6%
- Research & Development (R&D) spend at Rs. 19.6 billion [13.9% of Revenues]
- Selling, general & administrative (SG&A) expenses at Rs. 46.4 billion [YoY increase: 1%]
- EBITDA at Rs. 25.5 billion [18.1% of Revenues]
- Profit after tax at Rs. 12.0 billion [8.5% of Revenues]
Q4 FY17: Key Highlights
- Revenues at Rs. 35.5 billion: QoQ decline: 4%; YoY decline: 5%
- Gross Profit Margin at 51.2%
- R&D spend at Rs. 4.6 billion [12.9% of Revenues]
- SG&A expenses at Rs. 11.0 billion [YoY decline: 6%]
- EBITDA at Rs. 6.3 billion [17.7% of Revenues]
- Profit after tax at Rs. 3.1 billion [8.8% of Revenues]
Commenting on the results, Co-chairman and CEO, G V Prasad said, “FY17 has been a challenging year due to lack of new product approvals for the US market. However, our other geographies delivered good performances, with several new product launches. We are also seeing expanded global access to our Biosimilars, as a result of successful registrations in Emerging Markets. We will continue our focus on rationalisation of cost structures and building a sustainable quality culture across the organisation.”
All amounts in millions, except EPS
All US dollar amounts based on convenience translation rate of I USD = Rs. 64.85
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Dr. Reddy’s Laboratories Limited and Subsidiaries |
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Consolidated Income Statement for Q4 FY 17 |
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| Q4 FY17 | Q4 FY16 | ||||||||||||||||||||||
| Particulars | ($) | (Rs.) | % | ($) | (Rs.) | % | Growth % | ||||||||||||||||
| Revenues | 548 | 35,542 | 100.0 | 579 | 37,562 | 100.0 | (5 | ) | |||||||||||||||
| Cost of revenues | 268 | 17,360 | 48.8 | 251 | 16,286 | 43.4 | 7 | ||||||||||||||||
| Gross profit | 280 | 18,182 | 51.2 | 328 | 21,276 | 56.6 | (15 | ) | |||||||||||||||
| Operating Expenses | |||||||||||||||||||||||
| Selling, general & administrative expenses | 169 | 10,973 | 30.9 | 179 | 11,632 | 31.0 | (6 | ) | |||||||||||||||
| Research and development expenses | 71 | 4,579 | 12.9 | 75 | 4,879 | 13.0 | (6 | ) | |||||||||||||||
| Other operating (income) / expense | (8 | ) | (505 | ) | (1.4 | ) | (5 | ) | (307 | ) | (0.8 | ) | 64 | ||||||||||
| Results from operating activities | 48 | 3,135 | 8.8 | 78 | 5,072 | 13.5 | (38 | ) | |||||||||||||||
| Net finance expense | 1 | 48 | 0.1 | 41 | 2,646 | 7.0 | (98 | ) | |||||||||||||||
| Share of (profit) / loss of equity accounted investees | (2 | ) | (102 | ) | (0.3 | ) | (1 | ) | (59 | ) | (0.2 | ) | 72 | ||||||||||
| Profit before income tax | 49 | 3,189 | 9.0 | 38 | 2,485 | 6.6 | 28 | ||||||||||||||||
| Income tax expense | 1 | 64 | 0.2 | 27 | 1,739 | 4.6 | (96 | ) | |||||||||||||||
| Profit for the period | 48 | 3,125 | 8.8 | 11 | 746 | 2.0 | 319 | ||||||||||||||||
| - | - | ||||||||||||||||||||||
| Diluted EPS | 0.29 | 18.83 | 0.07 | 4.36 | 332 | ||||||||||||||||||
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EBITDA Computation |
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| Particulars | Q4 FY 17 | Q4 FY 16 | ||||||||||||
| $ | Rs. | $ | Rs. | |||||||||||
| Profit before income tax | 49 | 3,189 | 38 | 2,485 | ||||||||||
| Interest income, net* | (1 | ) | (90 | ) | (11 | ) | (713 | ) | ||||||
| Depreciation# | 36 | 2,338 | 32 | 2,062 | ||||||||||
| Amortization | 13 | 866 | 15 | 970 | ||||||||||
| EBITDA | 97 | 6,303 | 74 | 4,804 | ||||||||||
| EBITDA% to Revenues | 17.7 | % | 12.8 | % | ||||||||||
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* Includes income from Investments; # Includes Impairment charge |
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Key Balance Sheet Items |
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| Particulars | As on 31st Mar 17 | As on 31st Dec 16 | ||||||||||||
| ($) | (Rs.) | ($) | (Rs.) | |||||||||||
| Cash and cash equivalents and Other current Investments | 280 | 18,136 | 311 | 20,145 | ||||||||||
| Trade Receivables | 587 | 38,065 | 634 | 41,119 | ||||||||||
| Inventories | 440 | 28,529 | 463 | 30,052 | ||||||||||
| Property, plant and equipment | 881 | 57,160 | 882 | 57,209 | ||||||||||
| Goodwill and Other Intangible assets | 751 | 48,677 | 771 | 49,977 | ||||||||||
| Loans and borrowings (current & non-current) | 758 | 49,185 | 894 | 57,999 | ||||||||||
| Trade & other payables | 207 | 13,417 | 205 | 13,308 | ||||||||||
| Equity | 1,913 | 1,24,044 | 1,866 | 121,040 | ||||||||||
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Dr. Reddy’s Laboratories Limited and Subsidiaries |
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Consolidated Income Statement for FY 17 |
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| FY17 | FY16 | ||||||||||||||||||||||
| Particulars | ($) | (Rs.) | % | ($) | (Rs.) | % | Growth % | ||||||||||||||||
| Revenues | 2,171 | 1,40,809 | 100.0 | 2,386 | 1,54,708 | 100.0 | (9 | ) | |||||||||||||||
| Cost of revenues | 963 | 62,453 | 44.4 | 963 | 62,427 | 40.4 | 0 | ||||||||||||||||
| Gross profit | 1,208 | 78,356 | 55.6 | 1,423 | 92,281 | 59.6 | (15 | ) | |||||||||||||||
| Operating Expenses | |||||||||||||||||||||||
| Selling, general & administrative expenses | 715 | 46,372 | 32.9 | 705 | 45,702 | 29.5 | 1 | ||||||||||||||||
| Research and development expenses | 301 | 19,551 | 13.9 | 275 | 17,834 | 11.5 | 10 | ||||||||||||||||
| Other operating (income) / expense | (16 | ) | (1,065 | ) | (0.8 | ) | (13 | ) | (874 | ) | (0.6 | ) | 22 | ||||||||||
| Results from operating activities | |||||||||||||||||||||||