HYDERABAD, India
Dr. Reddy’s Laboratories Ltd. (BSE: 500124 | NSE: DRREDDY | NYSE: RDY | NSEIFSC: DRREDDY) today announced its consolidated financial results for the quarter ended June 30, 2024. The information mentioned in this release is based on consolidated financial statements under International Financial Reporting Standards (IFRS).
|
Q1FY25 |
|||
| Revenues |
₹ 76,727 Mn [Up: 14% YoY; 8% QoQ] |
||
| Gross Margin | 60.4%
[Q1FY24: 58.7%; Q4FY24: 58.6%] |
||
| SG&A Expenses |
₹ 22,691 Mn [Up: 28% YoY; 11% QoQ] |
||
| R&D Expenses |
₹ 6,193 Mn [8.1% of Revenues] |
||
| EBITDA |
₹ 21,599 Mn [28.2% of Revenues] |
||
| Profit before Tax |
₹ 18,821 Mn [Up: 2% YoY; 18% QoQ] |
||
| Profit after Tax |
₹ 13,920 Mn [Down: 1% YoY; Up: 7% QoQ] |
Commenting on the results, Co-Chairman & MD, G V Prasad said: “We had a good start to the new fiscal year and our growth & profitability was mainly driven by our generics business. We continue to strengthen our core businesses and have made strategic investments in biologics, consumer healthcare and innovation to drive patient impact and value creation.”
| All amounts in millions, except EPS |
All US dollar amounts based on convenience translation rate of 1 USD = ₹ 83.33 |
Dr. Reddy’s Laboratories Limited & Subsidiaries
|
Revenue Mix by Segment for the quarter |
|||||
|
Particulars |
Q1FY25 |
Q1FY24 |
YoY |
Q4FY24 |
QoQ |
|
(₹) |
(₹) |
(₹) |
|||
|
Global Generics |
68,858 |
60,083 |
15 |
61,191 |
13% |
|
North America |
38,462 |
32,002 |
20 |
32,626 |
18% |
|
Europe |
5,265 |
5,047 |
4 |
5,208 |
1% |
|
India |
13,252 |
11,482 |
15 |
11,265 |
18% |
|
Emerging Markets |
11,878 |
11,552 |
3 |
12,091 |
(2%) |
|
Pharmaceutical Services and Active Ingredients (PSAI) |
7,657 |
6,709 |
14 |
8,219 |
(7%) |
|
Others |
212 |
592 |
(64) |
1,420 |
(85%) |
|
Total |
76,727 |
67,384 |
14 |
70,830 |
8% |
|
Consolidated Income Statement for the quarter |
||||||||
|
Particulars |
Q1FY25 |
Q1FY24 |
YoY |
Q4FY24 |
QoQ |
|||
|
($) |
(₹) |
($) |
(₹) |
($) |
(₹) |
|||
|
Revenues |
921 |
76,727 |
809 |
67,384 |
14 |
850 |
70,830 |
8 |
|
Cost of Revenues |
365 |
30,383 |
334 |
27,831 |
9 |
352 |
29,347 |
4 |
|
Gross Profit |
556 |
46,344 |
475 |
39,553 |
17 |
498 |
41,483 |
12 |
|
% of Revenues |
|
60.4% |
|
58.7% |
|
|
58.6% |
|
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
Selling, General & Administrative Expenses |
272 |
22,691 |
212 |
17,702 |
28 |
246 |
20,476 |
11 |
|
% of Revenues |
|
29.6% |
|
26.3% |
|
|
28.9% |
|
|
Research & Development Expenses |
74 |
6,193 |
60 |
4,984 |
24 |
83 |
6,877 |
(10) |
|
% of Revenues |
|
8.1% |
|
7.4% |
|
|
9.7% |
|
|
Impairment of Non-Current Assets, net |
0 |
5 |
0 |
11 |
(55) |
(2) |
(173) |
(103) |
|
Other Operating (Income)/Expense |
(6) |
(470) |
(9) |
(780) |
(40) |
(8) |
(656) |
(28) |
|
Results from Operating Activities |
215 |
17,925 |
212 |
17,636 |
2 |
180 |
14,959 |
20 |
|
Finance (Income)/Expense, net |
(10) |
(837) |
(9) |
(784) |
7 |
(12) |
(1022) |
(18) |
|
Share of Profit of Equity Accounted Investees, net of tax |
(1) |
(59) |
(1) |
(43) |
37 |
(0) |
(35) |
69 |
|
Profit before Income Tax |
226 |
18,821 |
222 |
18,463 |
2 |
192 |
16,016 |
18 |
|
% of Revenues |
|
24.5% |
|
27.4% |
|
|
22.6% |
|
|
Income Tax Expense |
59 |
4,901 |
53 |
4,438 |
10 |
35 |
2,946 |
66 |
|
Profit for the Period |
167 |
13,920 |
168 |
14,025 |
(1) |
157 |
13,070 |
7 |
|
% of Revenues |
|
18.1% |
|
20.8% |
|
|
18.5% |
|
|
|
||||||||
|
Diluted Earnings per Share (EPS) |
1.00 |
83.46 |
1.01 |
84.22 |
(1) |
0.94 |
78.35 |
7 |
|
EBITDA Computation for the quarter |
||||||
|
Particulars |
Q1FY25 |
Q1FY24 |
Q4FY24 |
|||
|
($) |
(₹) |
($) |
(₹) |
($) |
(₹) |
|
|
Profit before Income Tax |
226 |
18,821 |
222 |
18,463 |
192 |
16,016 |
|
Interest (Income) / Expense, net* |
(12) |
(1,037) |
(8) |
(685) |
(10) |
(835) |
|
Depreciation |
30 |
2,508 |
27 |
2,281 |
29 |
2,421 |
|
Amortization |
16 |
1,302 |
16 |
1,302 |
15 |
1,291 |
|
Impairment |
0 |
5 |
0 |
11 |
(2) |
(173) |
|
EBITDA |
259 |
21,599 |
256 |
21,372 |
225 |
18,720 |
|
% of Revenues |
|
28.2% |
|
31.7% |
|
26.4% |
|
*Includes Income from Investment |
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|
Key Balance Sheet Items |
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|
Particulars |
As on 30th Jun 2024 |
As on 31st Mar 2024 |
As on 30th Jun 2023 |
|||
|
($) |
(₹) |
($) |
(₹) |
($) |
(₹) |
|
|
Cash and Cash Equivalents and Other Investments |
1,147 |
95,599 |
990 |
82,529 |
734 |
61,162 |
|
Trade Receivables |
973 |
81,088 |
964 |
80,298 |
925 |
77,095 |
|
Inventories |
823 |
68,568 |
763 |
63,552 |
629 |
52,398 |
|
Property, Plant, and Equipment |
964 |
80,343 |
923 |
76,886 |
807 |
67,207 |
|
Goodwill and Other Intangible Assets |
497 |
41,374 |
494 |
41,204 |
508 |
42,306 |
|
Loans and Borrowings (Current & Non-Current) |
368 |
30,675 |
240 |
20,020 |
150 |
12,520 |
|
Trade Payables |
409 |
34,109 |
371 |
30,919 |
332 |
27,682 |
|
Equity |
3,536 |
2,94,627 |
3,367 |
2,80,550 |
2,943 |
2,45,259 |
Key Business Highlights
- Acquired Nicotinell® and related brands in the Nicotine Replacement Therapy category in markets outside the US from Haleon plc for a total consideration of GBP 500 million, with an upfront cash payment of GBP 458 million and performance-based contingent payments of up to GBP 42 million, payable in 2025 and 2026. The transaction is expected to close in early Q4 of calendar year 2024.
- Entered into a joint venture agreement with Nestlé India to bring science-backed nutritional portfolio to more consumers in India. The JV is expected to become operational in Q2FY25.
- Partnered with Novartis Pharma LLC to distribute two of their leading anti-diabetes brands, Galvus® and Galvus Met®, in the Russian retail market.
- Received exclusive rights from Ingenus Pharmaceuticals to commercialize Cyclophosphamide Injection in the US.
- Collaborated with Alvotech for commercialization of their denosumab biosimilar candidate in the US on an exclusive basis, as well as in Europe and UK.
- Launched drug-free migraine management device, Nerivio®, in Germany, Spain, UK and South Africa.
- Inaugurated a 70,000 sq.ft. state-of-the-art Biologics facility of Aurigene Pharmaceutical Services in Genome Valley, Hyderabad, India. The process and analytical development laboratories are operational while the commissioning of manufacturing capacity will be completed in 2024.
ESG & other Updates
- Only Indian Pharma Company which featured in the 2024 list of Global 500 Most Sustainable Companies by Time Magazine and Statista.
- Named ‘Asia-Pacific Climate Leader’ by Financial Times for the second consecutive year in 2024, scoring the highest amongst Indian Pharma peers.
- Won the ‘Masters of Risk’ award in ‘Healthcare and Pharma’ at the India Risk Management Awards.
- Improved FTSE Russel’s ESG Score from 3.9 to 4.2 out of 5.
- Received a Form 483 with two observations after the USFDA completed a routine GMP inspection at two of our formulations manufacturing facilities in Duvvada, Visakhapatnam.
- Received a Form 483 with four observations after the USFDA completed a GMP inspection at our API manufacturing facility in Srikakulam, Andhra Pradesh.
Revenue Analysis
- Q1FY25 consolidated revenues at ₹ 76.7 billion, YoY growth of 14% and QoQ growth of 8%. The growth was largely driven by growth in global generics revenues in North America as well as India.
Global Generics (GG)
- Q1FY25 revenues at ₹ 68.9 billion, YoY growth of 15% and QoQ growth of 13%. YoY growth was primarily volume led, aided by new launches and integration of recently in-licensed vaccine portfolio in India, partially offset by price erosion. Sequential growth was due to change in product mix partly offset with adverse price erosion.
North America
- Q1FY25 revenues at ₹ 38.5 billion, YoY growth of 20% and QoQ growth of 18%. Our growth was largely on account of increase in volumes of our base business, contribution from new launches, partly offset by price erosion.
- During the quarter, we launched 3 new products in th