HYDERABAD, India
Dr. Reddy’s Laboratories Ltd. (BSE: 500124 | NSE: DRREDDY | NYSE: RDY) today announced its consolidated financial results for the quarter ended June 30, 2018 under International Financial Reporting Standards (IFRS).
|
Revenues |
Rs.3,721 Cr | |||
| [YoY: 12% Up, QoQ: 5% Up] | ||||
|
Gross Margin |
55.7% | |||
| [Q1 FY18: 51.6%; Q4 FY18: 53.5%] | ||||
|
SG&A expenses |
Rs.1,211 Cr | |||
| [YoY: 3% Up, QoQ: Flat] | ||||
|
R&D expenses |
Rs.416 Cr | |||
| [11.2% of Revenues] | ||||
|
Profit before Tax |
Rs.501 Cr | |||
| [13.5% of Revenues] | ||||
|
Profit after Tax |
Rs.456 Cr | |||
| [12.3% of Revenues] | ||||
Commenting on the results, Co-chairman and CEO, GV Prasad said “I am pleased with our first quarter results, aided by the launch of gSuboxone. Our focus on operational efficiencies has helped in significantly improving our margin profile. Looking ahead, while we may continue to experience price erosion in the North America Generics market, we will also continue to drive growth and cost efficiencies, at the same time, enhancing our quality management systems and building healthy portfolios across the markets we serve”.
All amounts in millions, except EPS
All US dollar amounts based on convenience translation rate of I USD = Rs.68.46
| Dr. Reddy’s Laboratories Limited and Subsidiaries | ||||||||||||||||
| Consolidated Income Statement | ||||||||||||||||
| Particulars | Q1 FY19 | Q1 FY18 |
YoY |
Q4 FY18 | QoQ Gr% |
|||||||||||
| ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | |||||||||||
| Revenues | 543 | 37,207 | 484 | 33,159 | 12 | 516 | 35,349 | 5 | ||||||||
|
Cost of Revenues |
241 |
16,479 |
235 |
16,062 |
3 |
240 |
16,454 |
0 |
||||||||
| Gross Profit | 303 | 20,728 | 250 | 17,097 | 21 | 276 | 18,895 | 10 | ||||||||
| Operating Expenses | ||||||||||||||||
|
Selling, General & Administrative expenses |
177 | 12,106 | 172 | 11,763 | 3 | 176 | 12,067 | 0.3 | ||||||||
|
Research and Development expenses |
61 | 4,157 | 74 | 5,075 | (18) | 63 | 4,348 | (4) | ||||||||
|
Other operating (income) / expense |
(4) | (303) | (3) | (194) | 56 | (2) | (167) | 80 | ||||||||
| Results from operating activities | 70 | 4,768 | 7 | 453 | 952 | 39 | 2,647 | 80 | ||||||||
|
Net finance (income) / expense |
(2) |
(156) |
(3) |
(221) |
(30) |
(15) |
(1,032) |
(85) |
||||||||
|
Share of (profit) / loss of equity accounted investees |
(1) |
(83) |
(1) |
(98) |
(15) |
(1) |
(69) |
20 |
||||||||
| Profit before income tax | 73 | 5,007 | 11 | 772 | 548 | 55 | 3,748 | 34 | ||||||||
|
Income tax expense |
7 | 446 | 3 | 181 | 146 | 11 | 726 | (39) | ||||||||
| Profit for the period | 67 | 4,561 | 9 | 591 | 672 | 44 | 3,022 | 51 | ||||||||
| - | - | - | ||||||||||||||
| Diluted Earnings Per Share (EPS) | 0.40 | 27.45 | 0.05 | 3.56 | 672 | 0.27 | 18.18 | 51 | ||||||||
| As % to Revenues | Q1 FY19 | Q1 FY18 | Q4 FY18 | ||||
| Gross Profit | 55.7 | 51.6 | 53.5 | ||||
| SG&A | 32.5 | 35.5 | 34.1 | ||||
| R&D | 11.2 | 15.3 | 12.3 | ||||
| PBT | 13.5 | 2.3 | 10.6 | ||||
| PAT | 12.3 | 1.8 | 8.5 | ||||
|
EBITDA Computation |
|||||||||||
| Particulars | Q1 FY19 | Q1 FY18 | Q4 FY18 | ||||||||
| ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | ||||||
| Profit before Income Tax | 73 | 5,007 | 11 | 772 | 55 | 3,748 | |||||
| Interest (income) net* | (1) | (46) | (3) | (211) | (15) | (1,001) | |||||
| Depreciation# | 32 | 2,214 | 29 | 2,008 | 31 | 2,109 | |||||
| Amortization# | 13 | 896 | 12 | 791 | 13 | 921 | |||||
| EBITDA | 118 | 8,071 | 49 | 3,360 | 84 | 5,777 | |||||
|
* Includes income from Investments # includes impairment charge |
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|
Key Balance Sheet Items |
|||||||||
| Particulars |
As on 30th June 2018 |
As on 31st March 2018 |
As on 30th June 2017 |
||||||
| ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | ||||
| Cash and cash equivalents and other investments | 249 | 17,047 | 344 | 23,517 | 213 | 14,572 | |||
| Trade receivables (current & non-current) | 703 | 48,095 | 596 | 40,786 | 601 | 41,140 | |||
| Inventories | 460 | 31,498 | 425 | 29,089 | 410 | 28,095 | |||
| Property, plant and equipment | 833 | 57,020 | 845 | 57,869 | 842 | 57,611 | |||
| Goodwill and Other Intangible assets | 720 | 49,289 | 710 | 48,610 | 709 | 48,564 | |||
| Loans and borrowings (current & non-current) | 793 | 54,273 | 741 | 50,714 | 737 | 50,462 | |||
| Trade payables | 216 | 14,816 | 234 | 16,052 | 193 | 13,225 | |||
| Equity | 1,905 | 1,30,430 | 1,847 | 1,26,460 | 1,803 | 1,23,423 | |||
|
Revenue Mix by Segment |
||||||||||
| Particulars | Q1 FY19 | Q1 FY18 | YoY Growth % |
Q4 FY18 | QoQ Growth % |
|||||
| (Rs.) | (Rs.) | (Rs.) | ||||||||
| Global Generics | 30,636 | 27,455 | 12 | 27,836 | 10 | |||||
| North America | 15,903 | 14,946 | 6 | 14,487 | 10 | |||||
| Europe | 2,016 | 2,075 | (3) | 1,711 | 18 | |||||
| India | 6,074 | 4,687 | 30 | 6,138 | (1) | |||||
| Emerging Markets | 6,643 | 5,747 | 16 | 5,500 | 21 | |||||
| Pharmaceutical Services and Active Ingredients (PSAI) | 5,409 | 4,651 | 16 | 6,251 | (13) | |||||
| Proprietary Products & Others | 1,162 | 1,053 | 10 | 1,262 | (8) | |||||
| Total | 37,207 | 33,159 | 12 | 35,349 | 5 | |||||
Segmental Analysis
Global Generics (GG)
Revenues from GG segment at Rs.30.6 billion. Year-on-year growth of 12%, primarily driven by contributions from Emerging Markets, India and launch of gSuboxone in the US. Sequential growth is 10%.
- Revenues from North America at Rs.15.9 billion. Year-on-year growth is 6%. Sequential growth of 10%, driven by contribution from new products, primarily gSuboxone, and partly offset by competitive pressures on some of the key molecules.
As of 30th J
