HYDERABAD, India
Dr. Reddy’s Laboratories Ltd. (NYSE: RDY) (BSE: 500124) (NSE:DRREDDY) today announced its consolidated financial results for the fourth quarter and full year ended March 31, 2015 under International Financial Reporting Standards (IFRS).
FY15: Key Highlights
- Three NDAs filed in our Proprietary Products business.
- Consolidated revenues for FY15 at Rs. 148.2 billion, year-on-year growth of 12%.
- Gross Profit Margin for FY15 at 57.6% versus 57.4% as in FY14.
- Research & Development (R&D) expenses for FY15 at Rs. 17.4 billion, year-on-year increase of 41%.
- Selling, general & administrative (SG&A) expenses for FY15 at Rs. 42.6 billion, year-on-year increase of 10%.
- EBITDA for FY15 at Rs. 36.2 billion, 24% of revenues; year-on-year growth of 9%.
- Profit after tax for FY15 at Rs. 22.2 billion, 15% of revenues; year-on-year growth of 3%
Q4 FY15: Key Highlights
- Consolidated revenues for Q4 FY15 at Rs. 38.7 billion, year-on-year growth of 11%.
- EBITDA for Q4 FY15 at Rs. 8.1 billion, 21% of revenues. During Q4 FY15 we have recorded a foreign exchange translation loss of Rs. 843 million on certain net monetary assets in Venezuela.
- Profit after tax for Q4 FY15 at Rs. 5.2 billion, 13% of revenues.
Dr. Reddy’s Co-chairman and CEO, GV Prasad commented, “We are pleased with the progress on our financial and non-financial parameters, which we delivered despite currency volatility in some of our Emerging Market geographies. Our commitment to R&D continues to show results, with the filings of NDAs in our Proprietary Products business during the quarter and continued filings of complex generics assets. Overall, our results demonstrate our commitment to execute on our strategy, across businesses, as we constantly strengthen our focus on patients and providing them access to affordable medicines.”
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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. 62.31 |
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| Dr. Reddy’s Laboratories Limited and Subsidiaries | ||||||||||||||||||||||||||||
| Consolidated Income Statement | ||||||||||||||||||||||||||||
| Particulars | FY15 | FY14 | Growth % | |||||||||||||||||||||||||
| ($) | (Rs.) | % | ($) | (Rs.) | % | |||||||||||||||||||||||
| Revenues | 2,378 | 148,189 | 100 | 2,121 | 132,170 | 100 | 12 | |||||||||||||||||||||
| Cost of revenues | 1,008 | 62,786 | 42.4 | 905 | 56,369 | 42.6 | 11 | |||||||||||||||||||||
| Gross profit | 1,371 | 85,403 | 57.6 | 1,217 | 75,801 | 57.4 | 13 | |||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||
| Selling, general & administrative expenses | 683 | 42,585 | 28.7 | 622 | 38,783 | 29.3 | 10 | |||||||||||||||||||||
| Research and development expenses | 280 | 17,449 | 11.8 | 199 | 12,402 | 9.4 | 41 | |||||||||||||||||||||
| Other operating expense / (income) | (15 | ) | (917 | ) | (0.6 | ) | (23 | ) | (1,416 | ) | (1 | ) | (35 | ) | ||||||||||||||
| Results from operating activities | 422 | 26,286 | 17.7 | 418 | 26,032 | 19.7 | 1 | |||||||||||||||||||||
| Finance (expense)/income, net | 27 | 1,682 | 1.1 | 6 | 400 | 0.3 | 321 | |||||||||||||||||||||
| Share of profit of equity accounted investees, net of income tax | 3 | 195 | 0.1 | 3 | 174 | 0.1 | 12 | |||||||||||||||||||||
| Profit before income tax | 452 | 28,163 | 19.0 | 427 | 26,606 | 20.1 | 6 | |||||||||||||||||||||
| Income tax expense | 96 | 5,984 | 4.0 | 82 | 5,094 | 3.9 | 17 | |||||||||||||||||||||
| Profit for the year | 356 | 22,179 | 15.0 | 345 | 21,512 | 16.3 | 3 | |||||||||||||||||||||
| Diluted EPS | 2.08 | 129.8 | 2.02 | 126.0 | 3 | |||||||||||||||||||||||
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EBITDA Computation |
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| Particulars | FY15 | FY14 | ||||||||||||||
| ($) | (Rs.) | ($) | (Rs.) | |||||||||||||
| Profit before tax | 452 | 28,163 | 427 | 26,606 | ||||||||||||
| Interest (income) / expense net | (12 | ) | (725 | ) | (0 | ) | (24 | ) | ||||||||
| Depreciation | 92 | 5,722 | 77 | 4,804 | ||||||||||||
| Amortization | 38 | 2,381 | 37 | 2,292 | ||||||||||||
| Impairment / (reversal of impairment) adjustment | 10 | 629 | (8 | ) | (497 | ) | ||||||||||
| EBITDA | 580 | 36,170 | 532 | 33,180 | ||||||||||||
| EBITDA (% to sales) | 24.4 | 25.1 | ||||||||||||||
Note:
Selling, general & administrative expenses, as above, includes an impairment charge Rs. 510 million [in FY15] and impairment reversal of Rs. 497 million [in FY14]
Research & Development expenses, as above, includes an impairment charge of Rs. 119 million in [FY15]
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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. 62.31 |
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Appendix 1: Key Balance Sheet Items |
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| Particulars | As on 31st March 15 | As on 31st Mar 14 | ||||||||||||
| ($) | (Rs.) | ($) | (Rs.) | |||||||||||
| Cash and cash equivalents and Other Investments | 636 | 39,654 | 538 | 33,534 | ||||||||||
| Trade receivables | 654 | 40,755 | 530 | 33,037 | ||||||||||
| Inventories | 410 | 25,529 | 385 | 23,992 | ||||||||||
| Property, plant and equipment | 772 | 48,090 | 713 | 44,424 | ||||||||||
| Goodwill and Other Intangible assets | 264 | 16,430 | 236 | 14,697 | ||||||||||
| Loans and borrowings (current & non-current) | 692 | 43,125 | 718 | 44,741 | ||||||||||
| Trade payables | 171 | 10,660 | 169 | 10,503 | ||||||||||
| Equity | 1,786 | 111,302 | 1,457 | 90,801 | ||||||||||
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Appendix 2: Revenue Mix by Segment |
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| Particulars | FY15 | FY14 | Growth % | |||||||||||||||||||||
| ($) | (Rs.) | % | ($) | (Rs.) | % | |||||||||||||||||||
| Global Generics | 1,935 | 120,556 | 81 | 1,688 | 105,164 | 80 | 15 | |||||||||||||||||
| North America | 64,723 | |||||||||||||||||||||||