HYDERABAD, India
Dr. Reddy’s Laboratories Ltd. (BSE: 500124 | NSE: DRREDDY | NYSE: RDY) today announced its consolidated financial results for the quarter ended December 31, 2019 under International Financial Reporting Standards (IFRS).
|
Q3 Performance Summary |
9M Performance Summary |
|||
|
Rs. 4,384 Cr |
Rs.13,028 Cr |
|||
|
Revenue |
Revenue |
|||
|
[Down: 9% QoQ; Up: 14% YoY] |
[Up: 15% YoY] |
|||
|
|
||||
|
54.1% |
54.7% |
|||
|
Gross Margin |
Gross Margin |
|||
|
[Q2 FY20: 57.5%; Q3 FY19: 53.9%] |
[9M FY19: 54.9%] |
|||
|
|
||||
|
Rs.1,267 Cr |
Rs.3,795 Cr |
|||
|
SGNA expenses |
SGNA expenses |
|||
|
[Down: 4% QoQ, Up: 5% YoY] |
[Up: 4% YoY] |
|||
|
|
||||
|
Rs.395 Cr |
Rs.1,122 Cr |
|||
|
R&D expenses |
R&D expenses |
|||
|
[9.0% of Revenues] |
[8.6% of Revenues] |
|||
|
|
||||
|
Rs.1,074 Cr |
Rs.3,642 Cr |
|||
|
EBITDA |
EBITDA |
|||
|
[Down: 25% QoQ; Up: 24% YoY] |
[Up: 44% YoY] |
|||
|
|
||||
|
Rs. (527 Cr)* |
Rs.1,089 Cr |
|||
|
Profit before Tax |
Profit before Tax |
|||
|
[Down: 169% QoQ; 191% YoY] |
[Down: 34% YoY] |
* Excluding intangibles impairment of Rs. 1,320 Cr; Profit before tax is Rs. 793 Cr
|
Note: Financials include other income of Rs. 3.5 billion received from Celgene pursuant to settlement for Lenalidomide |
Commenting on the results, Co-Chairman and MD, GV Prasad said “The current quarter performance has been good across all our businesses and we achieved strong EBITDA margins. The profits were impacted due to trigger based impairment charge taken on a few products including gNuvaring. We continue to focus on execution and have made significant progress on quality systems and operational efficiencies”.
All amounts in millions, except EPS. All US dollar amounts based on convenience translation rate of I USD = Rs.71.36
Dr. Reddy’s Laboratories Limited and Subsidiaries
Consolidated Income Statement
|
Particulars |
Q3 FY20 |
Q3 FY19 |
YoY |
Q2 FY20 |
QoQ |
|||
|
($) |
(Rs.) |
($) |
(Rs.) |
($) |
(Rs.) |
|||
|
Revenues |
614 |
43,838 |
540 |
38,500 |
14 |
673 |
48,009 |
(9) |
|
Cost of Revenues |
282 |
20,116 |
249 |
17,748 |
13 |
286 |
20,389 |
(1) |
|
Gross Profit |
332 |
23,722 |
291 |
20,752 |
14 |
387 |
27,620 |
(14) |
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
Selling, General & Administrative expenses |
178 |
12,670 |
169 |
12,036 |
5 |
185 |
13,217 |
(4) |
|
Research and Development expenses |
55 |
3,949 |
51 |
3,668 |
8 |
51 |
3,662 |
8 |
|
Impairment of non-current assets |
185 |
13,200 |
– |
– |
|
50 |
3,560 |
271 |
|
Other operating (income) |
(3) |
(228) |
(10) |
(681) |
(67) |
(2) |
(135) |
68 |
|
Results from operating activities |
(82) |
(5,869) |
80 |
5,729 |
(202) |
103 |
7,316 |
(180) |
|
Net finance (income) |
(6) |
(419) |
0 |
13 |
|
(3) |
(231) |
81 |
|
Share of (profit) / loss of equity accounted investees |
(2) |
(176) |
(1) |
(89) |
98 |
(2) |
(117) |
50 |
|
Profit before income tax |
(74) |
(5,274) |
81 |
5,805 |
(191) |
107 |
7,664 |
(169) |
|
Income tax expense |
6 |
423 |
13 |
953 |
(56) |
(46) |
(3,261) |
(113) |
|
Profit for the period |
(80) |
(5,697) |
68 |
4,852 |
(217) |
153 |
10,925 |
(152) |
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings Per Share (EPS) |
(0.48) |
(34.37) |
0.41 |
29.21 |
(217) |
0.92 |
65.82 |
(152) |
|
As % to Revenues |
Q3 FY20 |
Q3 FY19 |
Q2 FY20 |
|||||
|
Gross Profit |
54.1 |
53.9 |
57.5 |
|||||
|
SG&A |
28.9 |
31.3 |
34.9 |
|||||
|
R&D |
9.0 |
9.5 |
7.6 |
|||||
|
EBITDA |
|
24.5 |
|
22.5 |
|
|
29.9 |
|
|
PBT* |
(12.0) |
15.1 |
16.0 |
|||||
|
PAT |
(13.0) |
12.6 |
22.8 |
*Excluding intangibles impairment Q3 FY20 PBT @ 18.1%
EBITDA Computation
|
Particulars |
Q3 FY20 |
Q3 FY19 |
Q2 FY20 |
|||||
|
($) |
(Rs.) |
($) |
(Rs.) |
($) |
(Rs.) |
|||
|
Profit before Income Tax |
(74) |
(5,274) |
81 |
5,805 |
107 |
7,664 |
||
|
Interest (income) net* |
(4) |
(274) |
(4) |
(260) |
(3) |
(226) |
||
|
Depreciation |
30 |
2,130 |
29 |
2,073 |
32 |
2,306 |
||
|
Amortization |
13 |
955 |
14 |
1,035 |
14 |
1,033 |
||
|
Impairment |
185 |
13,200 |
|
– |
– |
|
50 |
3,561 |
|
EBITDA |
150 |
10,737 |
121 |
8,652 |
201 |
14,338 |
||
* Includes income from Investments
|
Note: Q3 FY20 Financials include an impairment charge of Rs. 13,200 million on some of the Company’s products forming part of Global Generics and Proprietary Products segments Q2 FY20 Financials include Rs. 6,901 million from the out-licensing income, net of expenses related to Neuro products of Proprietary Products Q2 FY20 Financials include an impairment charge of Rs. 3,561 million on some of the Company’s products forming part of Global Generics segment
|
Key Balance Sheet Items
|
Particulars |
As on 31st Dec, |
As on 30th Sep |
As on 31st Dec |
|||
|
($) |
(Rs.) |
($) |
(Rs.) |
($) |
(Rs.) |
|
|
Cash and cash equivalents and other investments |
287 |
20,457 |
427 |
30,446 |
359 |
25,593 |
|
Trade receivables (current & non-current) |
646 |
46,095 |
591 |
42,153 |
523 |
37,302 |
|
Inventories |
529 |
37,746 |
491 |
35,033 |
475 |
33,911 |
|
Property, plant and equipment |
739 |
52,709 |
743 |
53,008 |
776 |
55,344 |
|
Goodwill and Other Intangible assets |
432 |
30,847 |
621 |
44,340 |
690 |
49,205 |
|
Loans and borrowings (current & non-current) |
229 |
16,320 |
442 |
31,545 |
614 |
43,836 |
|
Trade payables |
250 |
17,810 |
216 |
15,434 |
223 |
15,939 |
|
Equity |
2,083 |
1,48,672 |
2,155 |
1,53,816 |
1,902 |
1,35,708 |
Revenue Mix by Segment
|
Particulars |
Q3 FY20 |
Q3 FY19 |
YoY |
Q2 FY20 |
QoQ |
|
(Rs.) |
(Rs.) |
(Rs.) |
|||
|
Global Generics |
35,927 |
31,347 |
15% |
32,816 |
9% |
|
North America |
15,999 |
14,832 |
8% |
14,265 |
