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, 2018 under International Financial Reporting Standards (IFRS).
Q4 Performance Summary |
FY18 Performance Summary |
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Rs.3,535 Cr |
Rs.14,203 Cr |
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Revenue |
Revenue |
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[Down: 7% QoQ; 1% YoY] |
[Up: 1% YoY] |
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53.5% |
53.7% |
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Gross Margin |
Gross Margin |
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[Q3 FY18: 56.3%; Q4 FY17: 51.2%] |
[FY17: 55.6%] |
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Rs.1,207 Cr |
Rs.4,691 Cr |
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SGNA expenses |
SGNA expenses |
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[Up: 10% YoY] |
[Up: 1% YoY] |
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Rs.435 Cr |
Rs.1,826 Cr |
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R&D expenses |
R&D expenses |
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[12.3% of Revenues] |
[12.9% of Revenues] |
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Rs.375 Cr |
Rs.1,434 Cr |
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Profit before Tax |
Profit before Tax |
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[10.6% of Revenues] |
[10.1% of Revenues] |
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Rs.302 Cr |
Rs.981 Cr |
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Profit after Tax |
Profit after Tax |
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[8.5% of Revenues] |
[6.9% of Revenues] |
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Note: During 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 charge of Rs. 130 Crores for the full year.
Commenting on the results, CEO and Co-chairman, G.V. Prasad said, “We concluded a challenging year for Dr. Reddy’s with a relatively muted fourth quarter’s performance. This was mainly on account of continuing headwinds in the U.S markets and a temporary drop in sales in Russia, attributable to a shift in the channel purchasing pattern.
Looking ahead, we will continue to work diligently on resolving pending regulatory issues. We will also focus on accelerating new products to market and improving our approval process.”
All amounts in millions, except EPS
All US dollar amounts based on convenience translation rate of I USD = Rs.65.11
Dr. Reddy’s Laboratories Limited and Subsidiaries | |||||||||||||||
Consolidated Income Statement | |||||||||||||||
Particulars |
Q4 FY18 |
Q4 FY17 | YoY Gr % |
Q3 FY18 | QoQ Gr% |
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($) | (Rs.) | ($) | (Rs.) |
($) |
(Rs.) | ||||||||||
Revenues |
543 | 35,349 | 546 | 35,542 | (1) | 585 | 38,060 | (7) | |||||||
Cost of Revenues | 253 | 16,454 | 267 | 17,360 | (5) | 256 | 16,649 | (1) | |||||||
Gross Profit | 290 | 18,895 | 279 | 18,182 | 4 | 329 | 21,411 | (12) | |||||||
Operating Expenses | |||||||||||||||
Selling, General & Administrative expenses | 185 | 12,067 | 169 | 10,973 | 10 | 185 | 12,048 | 0 | |||||||
Research and Development expenses | 67 | 4,348 | 70 | 4,579 | (5) | 72 | 4,667 | (7) | |||||||
Other operating (income) / expense | (3) | (167) | (8) | (505) | (67) | (5) | (313) | (46) | |||||||
Results from operating activities | 41 | 2,647 | 48 | 3,135 | (16) | 77 | 5,009 | (47) | |||||||
Net finance (income) / expense | (16) | (1,032) | 1 | 48 | (13) | (851) | 21 | ||||||||
Share of (profit) / loss of equity accounted investees | (1) | (69) | (2) | (102) | (32) | (1) | (85) | (18) | |||||||
Profit before income tax | 58 | 3,748 | 49 | 3,189 | 18 | 91 | 5,945 | (37) | |||||||
Income tax expense | 11 | 726 | 1 | 64 | 40 | 2,601 | (72) | ||||||||
Profit for the period | 46 | 3,022 | 48 | 3,125 | (3) | 51 | 3,344 | (10) | |||||||
- | - | - | |||||||||||||
Diluted Earnings Per Share (EPS) | 0.28 | 18.18 | 0.29 | 18.83 | (3) | 0.31 | 20.13 | (10) | |||||||
As % to Revenues | Q4 FY18 | Q4 FY17 | Q3 FY18 | ||||
Gross Profit | 53.5 | 51.2 | 56.3 | ||||
SG&A | 34.1 | 30.9 | 31.7 | ||||
R&D | 12.3 | 12.9 | 12.3 | ||||
PBT | 10.6 | 9.0 | 15.6 | ||||
PAT | 8.5 | 8.8 | 8.8 | ||||
EBITDA Computation |
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Particulars | Q4 FY18 | Q4 FY17 | Q3 FY18 | ||||||||
($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | ||||||
Profit before Income Tax | 58 | 3,748 | 49 | 3,189 | 91 | 5,945 | |||||
Interest (income) net* | (15) | (1,001) | (1) | (90) | (14) | (881) | |||||
Depreciation # | 32 | 2,109 | 36 | 2,338 | 32 | 2,089 | |||||
Amortization # | 14 | 921 | 13 | 866 | 14 | 902 | |||||
EBITDA | 89 | 5,777 | 97 | 6,303 | 124 | 8,055 | |||||
* – Includes income from Investments # includes impairment charge |
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Revenue Mix by Segment |
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Particulars | Q4 FY18 | Q4 FY17 | YoY Growth % |
Q3 FY18 | QoQ Growth % |
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(Rs.) | (Rs.) | (Rs.) | ||||||||
Global Generics | 27,836 | 29,138 | (4) | 30,105 | (8) | |||||
North America | 14,487 | 15,349 | (6) | 16,073 | (10) | |||||
Europe* | 1,711 | 2,066 | (17) | 2,006 | (15) | |||||
India | 6,138 | 5,711 | 7 | 6,126 | 0 | |||||
Emerging Markets # | 5,500 | 6,012 | (9) | 5,900 | (7) | |||||
Pharmaceutical Services and Active Ingredients (PSAI) | 6,251 | 5,401 | 16 | 5,436 | 15 | |||||
Proprietary Products & Others | 1,262 | 1,003 | 26 | 2,519 | (50) | |||||
Total | 35,349 | 35,542 | (1) | 38,060 | (7) | |||||
* Europe primarily includes Germany and UK | ||||||||||
# Emerging Markets refers to Russia, other CIS countries, Romania and Rest of the World markets | ||||||||||
Dr. Reddy’s Laboratories Limited and Subsidiaries | |||||||||||||
Consolidated Income Statement | |||||||||||||
Particulars | FY 18 | FY 17 | Growth % | ||||||||||
($) | (Rs.) | % | ($) | (Rs.) | % | ||||||||
Revenues | 2,181 | 1,42,028 | 100.0 | 2,163 | 1,40,809 | 100.0 | 1 | ||||||
Cost of Revenues | 1,009 | 65,724 | 46.3 | 959 | 62,453 | 44.4 | 5 | ||||||
Gross Profit | 1,172 | 76,304 | 53.7 | 1,203 | 78,356 | 55.6 | (3) | ||||||
Operating Expenses | |||||||||||||