HYDERABAD, India
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Dr. Reddy’s Laboratories Ltd. (BSE: 500124 | NSE: DRREDDY | NYSE: RDY) today announced its consolidated financial results for the third quarter and nine months ended December 31, 2016 under International Financial Reporting Standards (IFRS).
Q3 FY17: Key Highlights
- Revenues at Rs. 37.1 billion: QoQ growth: 3%
- YoY decline: 7%
- Gross Profit Margin at 59.1%.
- Research & Development (R&D) spend at Rs. 5.0 billion. [13.4% of Revenues]
- Selling, general & administrative (SG&A) expenses at Rs. 11.3 billion [YoY decline: 6%]
- EBITDA at Rs. 8.8 billion [23.7% of Revenues]
- Profit after tax at Rs. 4.7 billion [12.7% of Revenues]
9M FY17: Key Highlights
- Revenues at Rs. 105.3 billion: YoY decline: 10%
- Gross Profit Margin at 57.2%.
- Research & Development (R&D) spend at Rs. 15.0 billion. [14.2% of Revenues]
- Selling, general & administrative (SG&A) expenses at Rs. 35.4 billion [YoY increase: 4%]
- EBITDA at Rs. 19.2 billion [18.2% of Revenues]
- Profit after tax at Rs. 8.9 billion [8.5% of Revenues]
Commenting on the results, Co-chairman and CEO, G V Prasad said “Our performance in Q3 has delivered a modest sequential revenue growth of 3% over the previous quarter. Our EBITDA has improved significantly from the last quarter to Rs. 8.8 billion, on the back of enhanced emphasis on operational efficiencies and controlling of SG&A costs across all our businesses.”
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All amounts in millions, except EPS |
All US dollar amounts based on convenience translation rate of I USD = Rs. 67.92 |
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Dr. Reddy’s Laboratories Limited and Subsidiaries Consolidated Income Statement |
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| Particulars | Q3 FY17 | Q3 FY16 | Growth % | |||||||||||
| ($) | (Rs.) | % | ($) | (Rs.) | % | |||||||||
| Revenue | 546 | 37,065 | 100.0 | 584 | 39,679 | 100.0 | (7) | |||||||
| Cost of revenues | 223 | 15,166 | 40.9 | 237 | 16,089 | 40.5 | (6) | |||||||
| Gross profit | 322 | 21,899 | 59.1 | 347 | 23,590 | 59.5 | (7) | |||||||
| Operating Expenses | ||||||||||||||
| Selling, general & administrative expenses | 167 | 11,341 | 30.6 | 177 | 12,039 | 30.3 | (6) | |||||||
| Research and development expenses | 73 | 4,956 | 13.4 | 60 | 4,095 | 10.3 | 21 | |||||||
| Other operating income | (3) | (187) | (0.5) | (2) | (122) | (0.3) | 53 | |||||||
| Results from operating activities | 85 | 5,789 | 15.6 | 112 | 7,578 | 19.1 | (24) | |||||||
| Net finance (income) / expense | (1) | (44) | (0.1) | 1 | 62 | 0.2 | 171 | |||||||
| Share of profit of equity accounted investees | (1) | (89) | (0.2) | (1) | (64) | (0.2) | 38 | |||||||
| Profit before income tax | 87 | 5,922 | 16.0 | 112 | 7,580 | 19.1 | (22) | |||||||
| Income tax expense | 18 | 1,221 | 3.3 | 26 | 1,788 | 4.5 | (32) | |||||||
| Profit for the period | 69 | 4,701 | 12.7 | 85 | 5,792 | 14.6 | (19) | |||||||
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| Diluted EPS | 0.42 | 28.32 | 0.50 | 33.86 | (16) | |||||||||
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EBITDA Computation |
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| Particulars | Q3 FY 17 | Q3 FY 16 | ||||||
| $ | Rs. | $ | Rs. | |||||
| Profit before income tax | 87 | 5,922 | 112 | 7,580 | ||||
| Interest income, net* | (1) | (53) | (3) | (236) | ||||
| Depreciation | 29 | 1,936 | 25 | 1,685 | ||||
| Amortization / Impairment | 15 | 988 | 16 | 1086 | ||||
| EBITDA | 129 | 8,793 | 149 | 10,115 | ||||
| EBITDA% to Revenues | 23.7% | 25.5% | ||||||
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* Includes income from Investments |
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Key Balance Sheet Items |
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| Particulars | As on 31st Dec 16 | As on 30th Sep 16 | ||||||
| ($) | (Rs.) | ($) | (Rs.) | |||||
| Cash and cash equivalents and Other current Investments | 297 | 20,145 | 315 | 21,379 | ||||
| Trade Receivables | 605 | 41,119 | 544 | 36,939 | ||||
| Inventories | 442 | 30,052 | 420 | 28,516 | ||||
| Property, plant and equipment | 842 | 57,209 | 825 | 56,052 | ||||
| Goodwill and Other Intangible assets | 736 | 49,977 | 747 | 50,766 | ||||
| Loans and borrowings (current & non-current) | 854 | 57,999 | 890 | 60,480 | ||||
| Trade & other payables | 196 | 13,308 | 181 | 12,281 | ||||
| Equity | 1,782 | 121,040 | 1,697 | 115,264 | ||||
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All amounts in millions, except EPS |
All US dollar amounts based on convenience translation rate of I USD = Rs. 67.92 |
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Revenue Mix by Segment [Year on year] |
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| Particulars | Q3 FY17 | Q3 FY16 | Growth % | |||||||||||
| ($) | (Rs.) | % | ($) | (Rs.) | % | |||||||||
| Global Generics | 451 | 30,638 | 83 | 494 | 33,558 | 84 | -9 | |||||||
| North America | 16,595 | 19,417 | -15 | |||||||||||
| Europe* | 2,148 | 1,937 | 11 | |||||||||||
| India | 5,947 | 5,805 | 2 | |||||||||||
| Emerging Markets# | 5,948 | 6,399 | -7 | |||||||||||
| PSAI | 80 | 5,400 | 14 | 75 | 5,082 | 13 | 6 | |||||||
| North America | 1,259 | 1,037 | 21 | |||||||||||
| Europe | 1,828 | 1,951 | -6 | |||||||||||
| India | 409 | 622 | -34 | |||||||||||
| Rest of World | 1,904 | 1,472 | 29 | |||||||||||
| Proprietary Products & Others | 15 | 1,027 | 3 | 15 | 1,039 | 3 | -1 | |||||||
| Total | 546 | 37,065 | 100 | 584 | 39,679 | 100 | -7 | |||||||
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Revenue Mix by Segment [Sequential] |
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| Particulars | Q3 FY 17 | Q2 FY 17 | Growth % | |||||||||||
| ($) | (Rs.) | % | ($) | (Rs.) | % | |||||||||
| Global Generics | 451 | 30,638 | 83 | 427 | 28,995 | 81 | 6 | |||||||
| North America | 16,595 | 16,134 | 3 | |||||||||||
| Europe* | 2,148 | 1,776 | 21 | |||||||||||
| India | 5,9 | |||||||||||||