HYDERABAD, India
Dr. Reddy’s Laboratories Ltd. (BSE: 500124 | NSE: DRREDDY | NYSE: RDY) today announced its consolidated financial results for the third quarter and nine months ended December 31, 2017 under International Financial Reporting Standards (IFRS).
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Q3 Performance Summary |
9M Performance Summary |
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Rs.3,806 Cr |
Rs.10,668 Cr |
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Revenue |
Revenue |
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| [Up: 7% QoQ, Up: 3% YoY] | [Up: 1% YoY] | |||
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56.3% |
53.8% |
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Gross Margin |
Gross Margin |
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| [Q2 FY18: 53.3%; Q3 FY17: 59.1%] | [9M FY17: 57.2%] | |||
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Rs.1,205 Cr |
Rs.3,484 Cr |
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SGNA expenses |
SGNA expenses |
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| [Up: 6% YoY] | [Down: 2% YoY] | |||
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Rs.467 Cr |
Rs.1,392 Cr |
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R&D expenses |
R&D expenses |
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| [12.3% of Revenues] | [13.0% of Revenues] | |||
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Rs.806 Cr |
Rs.1,830 Cr |
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EBITDA |
EBITDA |
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| [21.2% of Revenues] | [17.2% of Revenues] | |||
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Rs.334 Cr* |
Rs.678 Cr* |
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Profit after Tax |
Profit after Tax |
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| [8.8% of Revenues] | [6.4% of Revenues] | |||
* During Q3 FY18, the ‘Tax Cuts and Jobs Act of 2017’ was approved and enacted in the United States. Consequent to this enactment the deferred tax assets and liabilities of the US entity have been re-measured resulting in a one-time charge of Rs. 93 Crores. [Adjusted PAT for Q3 FY 18: Rs.427 Crores and 9M FY 18: Rs.771 Crores]
Commenting on the results, CEO and Co-chairman G.V. Prasad said, “We had a satisfactory third quarter performance, with all our key markets performing well. We recorded sequential revenue growth of 7%, despite continuing challenges such as price erosion in the U.S. Our first-cycle NDA approval of Impoyz™ is a significant milestone in the commercialization of our proprietary products pipeline. We will continue our focus on operational excellence and controlling of SG&A costs across the organisation.”
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All amounts in millions, except EPS |
All US dollar amounts based on convenience translation rate of I USD = Rs. 63.83 |
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Dr. Reddy’s Laboratories Limited and Subsidiaries Consolidated Income Statement |
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| Particulars | Q3 FY 18 | Q3 FY 17 | Growth % | ||||||||||||||||||||
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($) |
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(Rs.) | % |
($) |
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(Rs.) | % | ||||||||||||||||
| Revenues | 596 | 38,060 | 100.0 | 581 | 37,065 | 100.0 | 3 | ||||||||||||||||
| Cost of revenues | 261 | 16,649 | 43.7 | 238 | 15,166 | 40.9 | 10 | ||||||||||||||||
| Gross profit | 335 | 21,411 | 56.3 | 343 | 21,899 | 59.1 | (2 | ) | |||||||||||||||
| Operating Expenses | |||||||||||||||||||||||
| Selling, general & administrative expenses | 189 | 12,048 | 31.7 | 178 | 11,341 | 30.6 | 6 | ||||||||||||||||
| Research and development expenses | 73 | 4,667 | 12.3 | 78 | 4,956 | 13.4 | (6 | ) | |||||||||||||||
| Other operating expense / (income) | (5 | ) | (313 | ) | (0.8 | ) | (3 | ) | (187 | ) | (0.5 | ) | 67 | ||||||||||
| Results from operating activities | 78 | 5,009 | 13.2 | 91 | 5,789 | 15.6 | (13 | ) | |||||||||||||||
| Finance expense / (income), net | (13 | ) | (851 | ) | (2.2 | ) | (1 | ) | (44 | ) | (0.1 | ) | 1850 | ||||||||||
| Share of (profit) of equity accounted investees, net of income tax | (1 | ) | (85 | ) | (0.2 | ) | (1 | ) | (89 | ) | (0.2 | ) | (5 | ) | |||||||||
| Profit before income tax | 93 | 5,945 | 15.6 | 93 | 5,922 | 16.0 | 0 | ||||||||||||||||
| Income tax expense | 41 | 2,601* | 6.8 | 19 | 1,221 | 3.3 | 113 | ||||||||||||||||
| Profit for the period | 52 | 3,344 | 8.8 | 74 | 4,701 | 12.7 | (29 | ) | |||||||||||||||
| Diluted EPS | 0.32 | 20.13 | 0.44 | 28.32 | (29 | ) | |||||||||||||||||
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* ~Rs. 930 million impact on account of reforms in US tax laws |
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EBITDA Computation |
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Particulars |
Q3 FY 18 |
Q3 FY 17 |
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($) |
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(Rs.) |
($) |
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(Rs.) |
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| Profit before income tax | 93 | 5,945 | 93 | 5,922 | ||||||||||
| Interest (income) / expense net* | (14 | ) | (881 | ) | (1 | ) | (53 | ) | ||||||
| Depreciation | 33 | 2,089 | 30 | 1,936 | ||||||||||
| Amortization | 14 | 882 | 15 | 956 | ||||||||||
| Impairment | 0.3 | 20 | 0.5 | 32 | ||||||||||
| EBITDA | 126 | 8,055 | 138 | 8,793 | ||||||||||
| EBITDA (% to revenues) | 21.2 | 23.7 | ||||||||||||
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* – Includes income from Investments |
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Key Balance Sheet Items |
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| Particulars | As on 31st Dec 17 | As on 30th Sep 17 | ||||||||||
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($) |
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(Rs.) |
($) |
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(Rs.) | |||||||
| Cash and cash equivalents and Other current Investments | 344 | 21,958 | 263 | 16,793 | ||||||||
| Trade receivables (current) | 665 | 42,432 | 661 | 42,203 | ||||||||
| Inventories | 420 | 26,825 | 423 | 26,998 | ||||||||
| Property, plant and equipment | 912 | 58,189 | 907 | 57,905 | ||||||||
| Goodwill and Other Intangible assets | 755 | 48,182 | 778 | 49,634 | ||||||||
| Loans and borrowings (current & non-current) | 860 | 54,911 | 841 | 53,668 | ||||||||
| Trade payables | 228 | 14,575 | 222 | 14,193 | ||||||||
| Equity | 1,938 | 1,23,685 | 1,909 | 1,21,840 | ||||||||
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All amounts in millions, except EPS |
All US dollar amounts based on convenience translation rate of I USD = Rs. 63.83 |
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Revenue Mix by Segment [Year on year] |
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| Particulars | Q3 FY 18 | Q3 FY 17 | Growth % | |||||||||||||||
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($) |
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(Rs.) | % |
($) |
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(Rs.) | % | |||||||||||
| Global Generics | 472 | 30,105 | 79 | 480 | ||||||||||||||