HYDERABAD, India
Dr. Reddy’s Laboratories Ltd. (NYSE: RDY) (BSE: 500124) (NSE: DRREDDY) today announced its consolidated financial results for the quarter ended September 30, 2015 under International Financial Reporting Standards (IFRS).
Q2 FY16: Key Highlights
- Consolidated revenues at Rs. 39.9 billion, year-on-year growth of 11%. In constant currency terms the revenue growth is 14%
- Gross Profit Margin at 61.3%, improved by 285 bps over last year
- Research & Development (R&D) spend at Rs. 4.5 billion. Continued focus on building complex generics and differentiated products pipeline
- Selling, general & administrative (SG&A) expenses at Rs. 11.1 billion. Marginal year-on-year increase. Year-on-year drop seen by ~200 bps in percentage to sales
- EBITDA at Rs. 11.4 billion, 28.6% of revenues, strong year-on-year growth of 31%
- Profit after tax at Rs. 7.2 billion, strong year-on-year growth of 26%. Diluted EPS at Rs. 42.2
Commenting on the results, Dr. Reddy’s co-chairman and CEO, GV Prasad said, “I am pleased with our performance for this quarter. We had robust sales growth across our markets of US, India and Europe, supported by new products that were launched in the last twelve months. Our investment in R&D remains at 11%, as we continue on our strategy of building an exciting pipeline of assets across our businesses. While satisfied with our performance, we are intensely focused on enhancing our quality management system and infrastructure to meet evolving global requirements and address the pending cGMP related matters at some of our facilities.”
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All amounts in millions, except EPS |
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All US dollar amounts based on convenience translation rate of 1 USD = Rs. 65.50 |
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| Dr. Reddy’s Laboratories Limited and Subsidiaries | |||||||||||||||||||||||||||
| Consolidated Income Statement | |||||||||||||||||||||||||||
| Particulars | Q2 FY 16 | Q2 FY 15 | Growth % | ||||||||||||||||||||||||
| ($) | (Rs.) | % | ($) | (Rs.) | % | ||||||||||||||||||||||
| Revenues | 609 | 39,890 | 100.0 | 548 | 35,879 | 100.0 | 11 | ||||||||||||||||||||
| Cost of revenues | 235 | 15,421 | 38.7 | 227 | 14,893 | 41.5 | 4 | ||||||||||||||||||||
| Gross profit | 374 | 24,469 | 61.3 | 320 | 20,986 | 58.5 | 17 | ||||||||||||||||||||
| Operating Expenses | |||||||||||||||||||||||||||
| Selling, general & administrative expenses | 169 | 11,058 | 27.7 | 163 | 10,673 | 29.7 | 4 | ||||||||||||||||||||
| Research and development expenses | 68 | 4,473 | 11.2 | 63 | 4,113 | 11.5 | 9 | ||||||||||||||||||||
| Other operating expense / (income) | (5 | ) | (320 | ) | (0.8 | ) | (4 | ) | (265 | ) | (0.7 | ) | 20 | ||||||||||||||
| Results from operating activities | 141 | 9,258 | 23.2 | 99 | 6,465 | 18.0 | 43 | ||||||||||||||||||||
| Finance expense / (income), net | 3 | 216 | 0.5 | (6 | ) | (421 | ) | (1.2 | ) | ||||||||||||||||||
| Share of profit of equity accounted investees, net of income tax | (1 | ) | (56 | ) | (0.1 | ) | (1 | ) | (51 | ) | (0.1 | ) | 10 | ||||||||||||||
| Profit before income tax | 139 | 9,098 | 22.8 | 106 | 6,937 | 19.3 | 31 | ||||||||||||||||||||
| Income tax expense | 29 | 1,879 | 4.7 | 18 | 1,196 | 3.3 | 57 | ||||||||||||||||||||
| Profit for the period | 110 | 7,219 | 18.1 | 88 | 5,741 | 16.0 | 26 | ||||||||||||||||||||
| Diluted EPS | 0.64 | 42.20 | 0.51 | 33.60 | 26 | ||||||||||||||||||||||
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EBITDA Computation |
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| Particulars | Q2 FY 16 | Q2 FY 15 | ||||||||||||||
| ($) | (Rs.) | ($) | (Rs.) | |||||||||||||
| Profit before tax | 139 | 9,098 | 106 | 6,937 | ||||||||||||
| Interest (income) / expense net* | (3 | ) | (172 | ) | (3 | ) | (178 | ) | ||||||||
| Depreciation | 25 | 1,606 | 22 | 1,409 | ||||||||||||
| Amortization | 13 | 860 | 8 | 548 | ||||||||||||
| EBITDA | 174 | 11,392 | 133 | 8,715 | ||||||||||||
| EBITDA (% to sales) | 28.6 | 24.3 | ||||||||||||||
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* Includes dividend and profit on sale of investments |
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All amounts in millions, except EPS |
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All US dollar amounts based on convenience translation rate of 1 USD = Rs. 65.50 |
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| Key Balance Sheet Items | ||||||||||||
| Particulars | As on 30th Sep 15 |
As on 30th Jun 15 |
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| ($) | (Rs.) | ($) | (Rs.) | |||||||||
| Cash and cash equivalents and Other current Investments | 520 | 34,050 | 536 | 35,117 | ||||||||
| Trade receivables | 654 | 42,840 | 642 | 42,030 | ||||||||
| Inventories | 414 | 27,147 | 399 | 26,149 | ||||||||
| Property, plant and equipment | 779 | 51,055 | 754 | 49,386 | ||||||||
| Goodwill and Other Intangible assets | 369 | 24,155 | 368 | 24,106 | ||||||||
| Loans and borrowings (current & non-current) | 566 | 37,072 | 632 | 41,400 | ||||||||
| Trade payables | 195 | 12,766 | 175 | 11,448 | ||||||||
| Equity | 1,855 | 121,499 | 1,815 | 118,885 | ||||||||
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Revenue Mix by Segment |
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| Particulars | Q2 FY 16 | Q2 FY 15 | Growth % | |||||||||||||||||||||
| ($) | (Rs.) | % | ($) | (Rs.) | % | |||||||||||||||||||
| Global Generics | 500 | 32,768 | 82 | 437 | 28,606 | 80 | 15 | |||||||||||||||||
| North America | 18,563 | 14,030 | 32 | |||||||||||||||||||||
| Europe* | 2,124 | |||||||||||||||||||||||
