HYDERABAD, India
Dr. Reddy’s Laboratories Ltd. (NYSE: RDY | BSE: 500124 | NSE: DRREDDY) today announced its consolidated financial results for the quarter ended December 31, 2015 under International Financial Reporting Standards (IFRS).
Q3 FY16: Key Highlights
- Consolidated revenues at Rs. 39.7 billion, year-on-year growth of 3%. Growth is driven by healthy performance in NAG, Europe and India; partially offset by Emerging markets, which were impacted by unfavorable macro-economic conditions.
- Gross Profit Margin at 59.5%, improved by ~130 bps over last year
- Research & Development (R&D) spend at Rs. 4.1 billion. Continued focus on building complex generics and differentiated products pipeline.
- Selling, general & administrative (SG&A) expenses at Rs. 12.0 billion
- EBITDA at Rs. 10.1 billion, 25.5% of revenues.
- Profit after tax at Rs. 5.8 billion. Diluted EPS at Rs. 33.9
9M FY16: Key Highlights
- Consolidated revenues at Rs. 117.1 billion, year-on-year growth of 7%
- Gross Profit Margin at 60.6%, improved by ~200 bps over last year
- Research & Development (R&D) spend at Rs. 13.0 billion. Continued focus on building complex generics and differentiated products pipeline.
- Selling, general & administrative (SG&A) expenses at Rs. 34.1 billion
- EBITDA at Rs. 31.4 billion, 26.8% of revenues
- Profit after tax at Rs. 19.3 billion. Diluted EPS at Rs. 112.6
Commenting on the company’s third quarter results, Co-chairman and CEO, G V Prasad said, “Despite multiple challenges, we have had a satisfactory quarter in terms of our financial performance. All of our key markets continue to perform well and show healthy growth. However, our performance has been impacted due to adverse macro-economic conditions across key emerging market territories. The two approvals and one tentative approval of our NDAs in the very first review cycle has been a positive development and lays the foundation for building a strong and sustainable proprietary products business. Enhancing our quality management practices and meeting the US FDA expectations continues to be our highest priority.”
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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. 66.19 |
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Dr. Reddy’s Laboratories Limited and Subsidiaries |
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Consolidated Income Statement |
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| Particulars | Q3 FY 16 | Q3 FY 15 | Growth % | ||||||||||||||||||
| ($) | (Rs.) | % | ($) | (Rs.) | % | ||||||||||||||||
| Revenues | 599 | 39,679 | 100.0 | 581 | 38,431 | 100.0 | 3 | ||||||||||||||
| Cost of revenues | 243 | 16,089 | 40.5 | 243 | 16,079 | 41.8 | 0 | ||||||||||||||
| Gross profit | 356 | 23,590 | 59.5 | 338 | 22,352 | 58.2 | 6 | ||||||||||||||
| Operating Expenses | |||||||||||||||||||||
| Selling, general & administrative expenses | 182 | 12,039 | 30.3 | 168 | 11,151 | 29.0 | 8 | ||||||||||||||
| Research and development expenses | 62 | 4,095 | 10.3 | 65 | 4,316 | 11.2 | (5) | ||||||||||||||
| Other operating expense / (income) | (2) | (122) | (0.3) | (5) | (341) | (0.9) | (64) | ||||||||||||||
| Results from operating activities | 114 | 7,578 | 19.1 | 109 | 7,226 | 18.8 | 5 | ||||||||||||||
| Finance expense / (income), net | 1 | 62 | 0.2 | (15) | (1,013) | (2.6) | NA | ||||||||||||||
| Share of profit of equity accounted investees, net of income tax | (1) | (64) | (0.2) | (1) | (47) | (0.1) | 38 | ||||||||||||||
| Profit before income tax | 115 | 7,580 | 19.1 | 125 | 8,286 | 21.6 | (9) | ||||||||||||||
| Income tax expense | 27 | 1,788 | 4.5 | 38 | 2,541 | 6.6 | (30) | ||||||||||||||
| Profit for the period | 88 | 5,792 | 14.6 | 87 | 5,745 | 15.0 | 1 | ||||||||||||||
| Diluted EPS | 0.51 | 33.86 | 0.51 | 33.61 | 1 | ||||||||||||||||
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EBITDA Computation |
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| Particulars | Q3 FY 16 | Q3 FY 15 | ||||||||
| ($) | (Rs.) | ($) | (Rs.) | |||||||
| Profit before tax | 115 | 7,580 | 125 | 8,286 | ||||||
| Interest (income) / expense net* | (4) | (236) | (5) | (347) | ||||||
| Depreciation | 25 | 1,685 | 22 | 1,462 | ||||||
| Amortization | 13 | 892 | 9 | 579 | ||||||
| Impairment | 3 | 194 | 8 | 534 | ||||||
| EBITDA | 153 | 10,115 | 159 | 10,515 | ||||||
| EBITDA (% to sales) | 25.5 | 27.4 | ||||||||
* Includes income from 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. 66.19 |
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Key Balance Sheet Items |
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| Particulars | As on 31st Dec 15 | As on 30th Sep 15 | ||||||||||
| ($) | (Rs.) | ($) | (Rs.) | |||||||||
| Cash and cash equivalents and Other current Investments | 575 | 38,028 | 514 | 34,050 | ||||||||
| Trade receivables | 633 | 41,904 | 647 | 42,840 | ||||||||
| Inventories | 403 | 26,689 | 410 | 27,147 | ||||||||
| Property, plant and equipment | 797 | 52,736 | 771 | 51,055 | ||||||||
| Goodwill and Other Intangible assets | 374 | 24,739 | 365 | 24,155 | ||||||||
| Loans and borrowings (current & non-current) | 511 | 33,801 | 560 | 37,072 | ||||||||
| Trade payables | 179 | 11,833 | 193 | 12,766 | ||||||||
| Equity | 1,944 | 128,681 | 1,836 | 121,499 | ||||||||
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Revenue Mix by Segment |
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| Particulars | Q3 FY 16 | Q3 FY 15 | Growth % | |||||||||||||||||||
| ($) | (Rs.) |
% |
($) | (Rs.) |
% |
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| Global Generics | 507 | 33,558 | 84 | 473 | 31,335 | 81 | 7 | |||||||||||||||
| North America | 19,417 | 16,462 | 18 | |||||||||||||||||||
| Europe* | 1,937 | 1,702 | 14 | |||||||||||||||||||
| India | 5,805 | 4,328 | 34 | |||||||||||||||||||
| Emerging Markets# | 6,399 | 8,843 | (28) | |||||||||||||||||||
| PSAI | ||||||||||||||||||||||