HYDERABAD, India
Dr. Reddy’s Laboratories Ltd. (NYSE: RDY) (BSE: 500124) (NSE: DRREDDY) today announced its consolidated financial results for the quarter ended June 30, 2015 under International Financial Reporting Standards (IFRS).
Q1 FY16: Key Highlights
- Consolidated revenues at Rs. 37.6 billion, year-on-year growth of 7%
- Gross Profit Margin at 61.1%, improved by 180 bps over last year
- Research & Development (R&D) spend at Rs. 4.4 billion. Continued focus on building complex and differentiated pipeline.
- Selling, general & administrative (SG&A) expenses at Rs. 11.0 billion. Marginal year-on-year increase.
- EBITDA for Q1 FY 16 at Rs. 9.9 billion, 26% of revenues, year-on-year growth of 12%.
- Profit after tax for Q1 FY 16 at Rs. 6.3 billion, 17% of revenues, year-on-year growth of 14%
Commenting on the results, Dr. Reddy’s co-chairman and CEO, GV Prasad said, “Our first quarter results, with YoY growth of 7% in topline and 14% in bottom line, reflects healthy performance. We were able to achieve these results despite limited new launches and headwinds in the form of currency devaluation in key emerging markets. As we continue to further strengthen our product portfolio and drive new launches, we are well positioned for the next phase of our growth.”
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All amounts in millions, except EPS |
All US dollar amounts based on convenience translation rate of 1 USD = Rs. 63.59 |
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| Dr. Reddy’s Laboratories Limited and Subsidiaries | |||||||||||||||||||||
| Consolidated Income Statement | |||||||||||||||||||||
| Particulars | Q1 FY 16 | Q1 FY 15 |
Growth |
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| ($) | (Rs.) | % | ($) | (Rs.) | % | ||||||||||||||||
| Revenues | 591 | 37,578 | 100.0 | 553 | 35,175 | 100.0 | 7 | ||||||||||||||
| Cost of revenues | 230 | 14,631 | 38.9 | 225 | 14,331 | 40.7 | 2 | ||||||||||||||
| Gross profit | 361 | 22,947 | 61.1 | 328 | 20,844 | 59.3 | 10 | ||||||||||||||
| Operating Expenses | |||||||||||||||||||||
| Selling, general & administrative expenses | 173 | 10,973 | 29.2 | 168 | 10,679 | 30.4 | 3 | ||||||||||||||
| Research and development expenses | 69 | 4,387 | 11.7 | 61 | 3,875 | 11.0 | 13 | ||||||||||||||
| Other operating expense / (income) | (2 | ) | (125 | ) | (0.3 | ) | (3 | ) | (185 | ) | (0.5 | ) | (32 | ) | |||||||
| Results from operating activities | 121 | 7,712 | 20.5 | 163 | 6,475 | 18.4 | 19 | ||||||||||||||
| Finance (expense) / income, net | 3 | 216 | 0.6 | 8 | 481 | 1.4 | (55 | ) | |||||||||||||
| Share of profit of equity accounted investees, net of income tax | 1 | 49 | 0.1 | 1 | 53 | 0.2 | (8 | ) | |||||||||||||
| Profit before income tax | 125 | 7,977 | 21.2 | 171 | 7,009 | 19.9 | 14 | ||||||||||||||
| Income tax expense | 27 | 1,720 | 4.6 | 24 | 1,505 | 4.3 | 14 | ||||||||||||||
| Profit for the year | 98 | 6,257 | 16.6 | 147 | 5,504 | 15.6 | 14 | ||||||||||||||
| Diluted EPS | 0.58 | 36.6 | 0.51 | 32.2 | 13 | ||||||||||||||||
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EBITDA Computation |
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| Particulars | Q1 FY 16 | Q1 FY 15 | ||||||||||||||
| ($) | (Rs.) | ($) | (Rs.) | |||||||||||||
| Profit before tax | 125 | 7,977 | 110 | 7,009 | ||||||||||||
| Interest (income) / expense net* | (5 | ) | (304 | ) | (0 | ) | (5 | ) | ||||||||
| Depreciation | 24 | 1,547 | 21 | 1,317 | ||||||||||||
| Amortization | 11 | 721 | 9 | 555 | ||||||||||||
| EBITDA | 156 | 9,941 | 140 | 8,876 | ||||||||||||
| EBITDA (% to sales) | 26.5 | 25.2 | ||||||||||||||
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* Includes dividend and profit on sale of investments |
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All amounts in millions, except EPS |
All US dollar amounts based on convenience translation rate of 1 USD = Rs. 63.59 |
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Key Balance Sheet Items |
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| Particulars | As on 30th Jun 15 | As on 31st Mar 15 | ||||||||||||
| ($) | (Rs.) | ($) | (Rs.) | |||||||||||
| Cash and cash equivalents and Other current Investments | 552 | 35,117 | 624 | 39,654 | ||||||||||
| Trade receivables | 661 | 42,030 | 641 | 40,755 | ||||||||||
| Inventories | 411 | 26,149 | 401 | 25,529 | ||||||||||
| Property, plant and equipment | 777 | 49,386 | 756 | 48,090 | ||||||||||
| Goodwill and Other Intangible assets | 379 | 24,106 | 258 | 16,430 | ||||||||||
| Loans and borrowings (current & non-current) | 651 | 41,400 | 678 | 43,125 | ||||||||||
| Trade payables | 180 | 11,448 | 168 | 10,660 | ||||||||||
| Equity | 1,870 | 118,885 | 1,750 | 111,302 | ||||||||||
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Revenue Mix by Segment |
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| Particulars | Q1 FY 16 | Q1 FY 15 |
Growth |
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| ($) | (Rs.) | % | ($) | (Rs.) | % | |||||||||||||||||||
| Global Generics | 487 | 30,961 | 82 | 452 | 28,739 | 82 | 8 | |||||||||||||||||
| North America | 18,515 | 60 | 16,205 | 56 | 14 | |||||||||||||||||||
| Europe* | 1,912 | 6 | 1,334 | 5 | 43 | |||||||||||||||||||
| India | 4,756 | 15 | 3,999 | 14 | 19 | |||||||||||||||||||
| Emerging Markets# | 5,776 | 19 | 7,201 | 25 | (20 | ) | ||||||||||||||||||
| PSAI | 88 | 5,614 | 15 | 87 | 5,538 | 15 | ||||||||||||||||||