Loading...
Dr. Reddy’s Q1FY25 Financial Results
INVESTOR RELATIONS
RICHA PERIWAL
richaperiwal@drreddys.com
AISHWARYA SITHARAM
aishwaryasitharam@drreddys.com
MEDIA RELATIONS
USHA IYER
ushaiyer@drreddys.com
Dr. Reddy’s Laboratories Ltd. (BSE: 500124 | NSE: DRREDDY | NYSE: RDY | NSEIFSC: DRREDDY) today announced its consolidated financial results for the quarter ended June 30, 2024. The information mentioned in this release is based on consolidated financial statem ents under International Financial Reporting Standards (IFRS).
Q1FY25 |
|||
Revenues | ? 76,727 Mn [Up: 14% YoY; 8% QoQ] |
||
Gross Margin | 60.4%
[Q1FY24: 58.7%; Q4FY24: 58.6%] |
||
SG&A Expenses | ? 22,691 Mn [Up: 28% YoY; 11% QoQ] |
||
R&D Expenses | ? 6,193 Mn [8.1% of Revenues] |
||
EBITDA | ? 21,599 Mn [28.2% of Revenues] |
||
Profit before Tax | ? 18,821 Mn [Up: 2% YoY; 18% QoQ] |
||
Profit after Tax | ? 13,920 Mn [Down: 1% YoY; Up: 7% QoQ] |
Commenting on the results, Co-Chairman & MD, G V Prasad said: “We had a good start to the new fiscal year and our growth & profitability was mainly driven by our generics business. We continue to strengthen our core businesses and have made strategic investments in biologics, consumer healthcare and innovation to drive patient impact and value creation.”
All amounts in millions, except EPS | All US dollar amounts based on convenience translation rate of 1 USD = ? 83.33 |
Dr. Reddy’s Laboratories Limited & Subsidiaries
Revenue Mix by Segment for the quarter |
|||||
Particulars |
Q1FY25 |
Q1FY24 |
YoY
|
Q4FY24 |
QoQ
|
(?) |
(?) |
(?) |
|||
Global Generics |
68,858 |
60,083 |
15 |
61,191 |
13% |
North America |
38,462 |
32,002 |
20 |
32,626 |
18% |
Europe |
5,265 |
5,047 |
4 |
5,208 |
1% |
India |
13,252 |
11,482 |
15 |
11,265 |
18% |
Emerging Markets |
11,878 |
11,552 |
3 |
12,091 |
(2%) |
Pharmaceutical Services and Active Ingredients (PSAI) |
7,657 |
6,709 |
14 |
8,219 |
(7%) |
Others |
212 |
592 |
(64) |
1,420 |
(85%) |
Total |
76,727 |
67,384 |
14 |
70,830 |
8% |
Consolidated Income Statement for the quarter |
||||||||
Particulars |
Q1FY25 |
Q1FY24 |
YoY
|
Q4FY24 |
QoQ
|
|||
($) |
(?) |
($) |
(?) |
($) |
(?) |
|||
Revenues |
921 |
76,727 |
809 |
67,384 |
14 |
850 |
70,830 |
8 |
Cost of Revenues |
365 |
30,383 |
334 |
27,831 |
9 |
352 |
29,347 |
4 |
Gross Profit |
556 |
46,344 |
475 |
39,553 |
17 |
498 |
41,483 |
12 |
% of Revenues |
|
60.4% |
|
58.7% |
|
|
58.6% |
|
Operating Expenses |
|
|
|
|
|
|
|
|
Selling, General & Administrative Expenses |
272 |
22,691 |
212 |
17,702 |
28 |
246 |
20,476 |
11 |
% of Revenues |
|
29.6% |
|
26.3% |
|
|
28.9% |
|
Research & Development Expenses |
74 |
6,193 |
60 |
4,984 |
24 |
83 |
6,877 |
(10) |
% of Revenues |
|
8.1% |
|
7.4% |
|
|
9.7% |
|
Impairment of Non-Current Assets, net |
0 |
5 |
0 |
11 |
(55) |
(2) |
(173) |
(103) |
Other Operating (Income)/Expense |
(6) |
(470) |
(9) |
(780) |
(40) |
(8) |
(656) |
(28) |
Results from Operating Activities |
215 |
17,925 |
212 |
17,636 |
2 |
180 |
14,959 |
20 |
Finance (Income)/Expense, net |
(10) |
(837) |
(9) |
(784) |
7 |
(12) |
(1022) |
(18) |
Share of Profit of Equity Accounted Investees, net of tax |
(1) |
(59) |
(1) |
(43) |
37 |
(0) |
(35) |
69 |
Profit before Income Tax |
226 |
18,821 |
222 |
18,463 |
2 |
192 |
16,016 |
18 |
% of Revenues |
|
24.5% |
|
27.4% |
|
|
22.6% |
|
Income Tax Expense |
59 |
4,901 |
53 |
4,438 |
10 |
35 |
2,946 |
66 |
Profit for the Period |
167 |
13,920 |
168 |
14,025 |
(1) |
157 |
13,070 |
7 |
% of Revenues |
|
18.1% |
|
20.8% |
|
|
18.5% |
|
|
||||||||
Diluted Earnings per Share (EPS) |
1.00 |
83.46 |
1.01 |
84.22 |
(1) |
0.94 |
78.35 |
7 |
EBITDA Computation for the quarter |
||||||
Particulars |
Q1FY25 |
Q1FY24 |
Q4FY24 |
|||
($) |
(?) |
($) |
(?) |
($) |
(?) |
|
Profit before Income Tax |
226 |
18,821 |
222 |
18,463 |
192 |
16,016 |
Interest (Income) / Expense, net* |
(12) |
(1,037) |
(8) |
(685) |
(10) |
(835) |
Depreciation |
30 |
2,508 |
27 |
2,281 |
29 |
2,421 |
Amortization |
16 |
1,302 |
16 |
1,302 |
15 |
1,291 |
Impairment |
0 |
5 |
0 |
11 |
(2) |
(173) |
EBITDA |
259 |
21,599 |
256 |
21,372 |
225 |
18,720 |
% of Revenues |
|
28.2% |
|
31.7% |
|
26.4% |
*Includes Income from Investment |
Key Balance Sheet Items |
||||||
Particulars |
As on 30th Jun 2024 |
As on 31st Mar 2024 |
As on 30th Jun 2023 |
|||
($) |
(?) |
($) |
(?) |
($) |
(?) |
|
Cash and Cash Equivalents and Other Investments |
1,147 |
95,599 |
990 |
82,529 |
734 |
61,162 |
Trade Receivables |
973 |
81,088 |
964 |
80,298 |
925 |
77,095 |
Inventories |
823 |
68,568 |
763 |
63,552 |
629 |
52,398 |
Property, Plant, and Equipment |
964 |
80,343 |
923 |
76,886 |
807 |
67,207 |
Goodwill and Other Intangible Assets |
497 |
41,374 |
494 |
41,204 |
508 |
42,306 |
Loans and Borrowings (Current & Non-Current) |
368 |
30,675 |
240 |
20,020 |
150 |
12,520 |
Trade Payables |
409 |
34,109 |
371 |
30,919 |
332 |
27,682 |
Equity |
3,536 |
2,94,627 |
3,367 |
2,80,550 |
2,943 |
2,45,259 |
Key Business Highlights
ESG & other Updates
Revenue Analysis
Global Generics (GG)
North America
Europe
India
Emerging Markets
Pharmaceutical Services and Active Ingredients (PSAI)
Income Statement Highlights:
Gross Margin
Selling, General & Administrative (SG&A) Expenses
Research & Development (R&D) Expenses
Other Operating Income
Net Finance Income
Profit before Tax
Profit after Tax
Diluted Earnings per Share (EPS)
Other Highlights:
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Others:
About key metrics and non-GAAP Financial Measures
This press release contains non-GAAP financial measures within the meaning of Regulation G and Item 10(e) of Regulation S-K. Such non-GAAP financial measures are measures of our historical performance, financial position or cash flows that are adjusted to exclude or include amounts from the most directly comparable financial measure calculated and presented in accordance with IFRS.
The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with IFRS. Our non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. These measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes.
We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating our business.
For more information on our non-GAAP financial measures and a reconciliation of GAAP to non-GAAP measures, please refer to "Reconciliation of GAAP to Non-GAAP Results" table in this press release.
All amounts in millions, except EPS
Reconciliation of GAAP Measures to Non-GAAP Measures
Operating Working Capital |
|
Particulars |
As on 30th Jun 2024 |
(?) |
|
Inventories |
68,568 |
Trade Receivables |
81,088 |
Less: |
|
Trade Payables |
34,109 |
Operating Working Capital |
115,547 |
Free Cash Flow |
|
Particulars |
Three months ended 30th Jun 2024 |
(?) |
|
Net cash generated from operating activities |
10,027 |
Less: |
|
Taxes |
(1,531) |
Investments in Property, Plant & Equipment, and Intangibles |
(6,224) |
Free Cash Flow |
2,272 |
Net Cash Surplus and Debt to Equity |
|
Particulars |
As on 30th Jun 2024 |
(?) |
|
Cash and Cash Equivalents |
4,913 |
Investments |
90,686 |
Short-term Borrowings |
(23,165) |
Long-term Borrowings, Non-Current |
(6,229) |
Less: |
|
Restricted Cash Balance – Unclaimed Dividend |
155 |
Lease liabilities (included in Long-term Borrowings, Non-Current) |
(2,429) |
Equity Investments (Included in Investments) |
1,174 |
Net Cash Surplus |
67,305 |
Equity |
2,94,628 |
Net Debt/Equity |
(0.23) |
Computation of Return on Capital Employed |
|
Particulars |
As on 30th Jun 2024 |
(?) |
|
Profit before Tax |
18,821 |
Less: |
|
Interest and Investment Income (Excluding forex gain/loss) |
1,037 |
Earnings Before Interest and taxes [A] |
17,784 |
|
|
Average Capital Employed [B] |
215,327 |
Return on Capital Employed (A/B) (Ratio) |
|
Annualised Return on Capital Employed (A/B) |
33% |
Computation of Capital Employed: |
||
Particulars |
As on |
|
30th Jun, 2024 |
31st Mar, 2024 |
|
Property Plant and Equipment |
80,343 |
76,886 |
Intangibles |
37,131 |
36,951 |
Goodwill |
4,243 |
4,253 |
Investment in Equity Accounted Associates |
4,236 |
4,196 |
Other Current Assets |
24,483 |
22,560 |
Other Investments |
973 |
1,059 |
Other Non-Current Assets |
1,659 |
1,632 |
Inventories |
68,568 |
63,552 |
Trade Receivables |
81,088 |
80,298 |
Derivative Financial Instruments |
91 |
(299) |
Less: |
|
|
Other Liabilities |
40,379 |
46,866 |
Provisions |
5,532 |
5,444 |
Trade payables |
34,109 |
30,919 |
Operating Capital Employed |
222,795 |
207,859 |
Average Capital Employed |
215,327 |
Computation of EBITDA
Refer page no. 3.
Earnings Call Details
The management of the Company will host an Earnings call to discuss the Company’s financial performance and answer any questions from the participants.
Date: Saturday, July 27, 2024 |
Time: 16:30 pm IST | 07:00 am ET |
Conference Joining Information |
Option 1: Pre-register with the below link and join without waiting for the operator |
Option 2: Join through below Dial-In Numbers |
|
Universal Access Number: |
+91 22 6280 1219 +91 22 7115 8120 |
International Toll-Free Number: |
USA: 1 866 746 2133 UK: 0 808 101 1573 Singapore: 800 101 2045 Hong Kong: 800 964 448 |
No password/pin number is necessary to dial in to any of the above numbers. The operator will provide instructions on asking questions before and during the call.
Play Back: The play back will be available after the earnings call, till August 3rd, 2024. For play back dial in phone No: +91 22 7194 5757, and Playback Code is 57537.
Audio and Transcript: Audio and Transcript of the Earnings call will be available on the Company’s website: www.drreddys.com
About Dr. Reddy’s: Dr. Reddy’s Laboratories Ltd. (BSE: 500124, NSE: DRREDDY, NYSE: RDY, NSEIFSC: DRREDDY) is a global pharmaceutical company headquartered in Hyderabad, India. Established in 1984, we are committed to providing access to affordable and innovative medicines. Driven by our purpose of ‘Good Health Can’t Wait’, we offer a portfolio of products and services including APIs, generics, branded generics, biosimilars and OTC. Our major therapeutic areas of focus are gastrointestinal, cardiovascular, diabetology, oncology, pain management and dermatology. Our major markets include – USA, India, Russia & CIS countries, China, Brazil, and Europe. As a company with a history of deep science that has led to several industry firsts, we continue to plan and invest in businesses of the future. As an early adopter of sustainability and ESG actions, we released our first Sustainability Report in 2004. Our current ESG goals aim to set the bar high in environmental stewardship; access and affordability for patients; diversity; and governance. For more information, log on to: www.drreddys.com.
Disclaimer: This press release may include statements of future expectations and other forward-looking statements that are based on the management’s current views and assumptions and involve known or unknown risks and uncertainties that could cause actual results, performance, or events to differ materially from those expressed or implied in such statements. In addition to statements which are forward-looking by reason of context, the words "may", "will", "should", "expects", "plans", "intends", "anticipates", "believes", "estimates", "predicts", "potential", or "continue" and similar expressions identify forward-looking statements. Actual results, performance or events may differ materially from those in such statements due to without limitation, (i) general economic conditions such as performance of financial markets, credit defaults , currency exchange rates , interest rates , persistency levels and frequency / severity of insured loss events (ii) mortality and morbidity levels and trends, (iii) changing levels of competition and general competitive factors, (iv) changes in laws and regulations and in the policies of central banks and/or governments, (v) the impact of acquisitions or reorganization , including related integration issues, and (vi) the susceptibility of our industry and the markets addressed by our, and our customers’, products and services to economic downturns as a result of natural disasters, epidemics, pandemics or other widespread illness, including coronavirus (or COVID-19), and (vii) other risks and uncertainties identified in our public filings with the Securities and Exchange Commission, including those listed under the "Risk Factors" and "Forward-Looking Statements" sections of our Annual Report on Form 20-F for the year ended March 31, 2024. The company assumes no obligation to update any information contained herein.” The company assumes no obligation to update any information contained herein.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240727061586/en/