Dr. Reddy’s Laboratories Ltd. (NYSE: RDY) today announced its unaudited
consolidated financial results for the quarter ended June 30, 2013 under
International Financial Reporting Standards (IFRS).
Key Highlights (Q1 FY14)
-
Consolidated revenues for Q1 FY14 at Rs. 28.4 billion, recorded YoY
growth of 12%.
-
Revenues from the Global Generics segment for Q1 FY14 at Rs. 21.9
billion, YoY growth of 15%.
-
Revenues from the PSAI segment for Q1 FY14 at Rs. 5.9 billion, YoY
growth of 6%.
-
R&D expenses for Q1 FY14 increased by 55% to reach Rs. 2.4 billion,
8.5% of revenues as compared to 6.2% of revenues in Q1 FY13.
-
Selling, general & administrative (SG&A) expenses for Q1 FY14
increased by only 6% and stood at Rs. 8.8 billion, 30.9% to revenues
as compared to 32.6% to revenues in Q1 FY13.
-
EBITDA for Q1 FY14 at Rs. 5.7 billion, 20% of revenues and has
recorded a YoY growth of 13%.
-
PAT for Q1 FY14 at Rs. 3.6 billion, 13% of revenues and has
recorded a YoY growth of 7%.
-
Adjusted PAT* for Q1 FY14 at Rs. 3.2 billion, 11% of revenues with
a YoY growth of 12%
-
During the quarter, the company launched 18 new generic products,
filed 12 new product registrations and filed 5 DMFs globally.
* Q1 FY14 normalized to the FY14 annual effective tax rate and Q1
FY13 normalized to the FY13 annual effective tax rate
All figures in millions, except EPS
|
|
All US dollar figures based on convenience translation rate of
1USD = Rs. 59.52
|
|
Dr. Reddy’s Laboratories Limited and Subsidiaries
|
Unaudited Consolidated Income Statement
|
|
|
|
|
|
Q1 FY14
|
|
Q1 FY13
|
|
|
Particulars
|
|
($)
|
|
(Rs.)
|
|
%
|
|
|
($)
|
|
(Rs.)
|
|
%
|
|
|
Growth %
|
Revenues
|
|
478
|
|
|
28,449
|
|
|
100.0
|
|
|
427
|
|
|
25,406
|
|
|
100.0
|
|
|
12
|
|
Cost of revenues
|
|
226
|
|
|
13,430
|
|
|
47.2
|
|
|
199
|
|
|
11,865
|
|
|
46.7
|
|
|
13
|
|
Gross profit
|
|
252
|
|
|
15,019
|
|
|
52.8
|
|
|
228
|
|
|
13,541
|
|
|
53.3
|
|
|
11
|
|
Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general & administrative expenses
|
|
148
|
|
|
8,794
|
|
|
30.9
|
|
|
139
|
|
|
8,278
|
|
|
32.6
|
|
|
6
|
|
Research and development expenses
|
|
41
|
|
|
2,430
|
|
|
8.5
|
|
|
26
|
|
|
1,564
|
|
|
6.2
|
|
|
55
|
|
Other operating income
|
|
(6
|
)
|
|
(376
|
)
|
|
(1.3
|
)
|
|
(4
|
)
|
|
(218
|
)
|
|
(0.9
|
)
|
|
73
|
|
Results from operating activities
|
|
70
|
|
|
4,171
|
|
|
14.7
|
|
|
66
|
|
|
3,917
|
|
|
15.4
|
|
|
6
|
|
Net finance expense
|
|
1
|
|
|
70
|
|
|
0.2
|
|
|
4
|
|
|
212
|
|
|
0.8
|
|
|
(67
|
)
|
Share of profit of equity accounted investees
|
|
(1
|
)
|
|
(36
|
)
|
|
(0.1
|
)
|
|
(0
|
)
|
|
(19
|
)
|
|
(0.1
|
)
|
|
87
|
|
Profit before income tax (PBT)
|
|
70
|
|
|
4,137
|
|
|
14.5
|
|
|
63
|
|
|
3,725
|
|
|
14.7
|
|
|
11
|
|
Income tax expense
|
|
9
|
|
|
528
|
|
|
1.9
|
|
|
6
|
|
|
365
|
|
|
1.4
|
|
|
45
|
|
Profit for the period (PAT)
|
|
61
|
|
|
3,609
|
|
|
12.7
|
|
|
56
|
|
|
3,360
|
|
|
13.2
|
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS
|
|
0.4
|
|
|
21.17
|
|
|
|
|
0.3
|
|
|
19.74
|
|
|
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA Computation
|
|
|
Q1 FY14
|
|
|
|
|
Q1 FY13
|
|
|
($)
|
|
|
(Rs.)
|
|
|
|
|
($)
|
|
|
(Rs.)
|
PBT
|
|
|
70
|
|
|
|
4,137
|
|
|
|
|
|
63
|
|
|
|
3,725
|
|
Interest
|
|
|
(1
|
)
|
|
|
(61
|
)
|
|
|
|
|
0
|
|
|
|
3
|
|
Depreciation
|
|
|
19
|
|
|
|
1,117
|
|
|
|
|
|
15
|
|
|
|
896
|
|
Amortization
|
|
|
8
|
|
|
|
496
|
|
|
|
|
|
7
|
|
|
|
400
|
|
EBITDA
|
|
|
96
|
|
|
|
5,689
|
|
|
|
|
|
84
|
|
|
|
5,024
|
|
|
|
|
|
|
|
|
|
|
Adjusted PAT Computation
|
|
|
Q1 FY14
|
|
|
|
|
Q1 FY13
|
|
|
($)
|
|
|
(Rs.)
|
|
|
|
|
($)
|
|
|
(Rs.)
|
PAT
|
|
|
61
|
|
|
|
3,609
|
|
|
|
|
|
56
|
|
|
|
3,360
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax adjustment*
|
|
|
(6
|
)
|
|
|
(382
|
)
|
|
|
|
|
(8
|
)
|
|
|
(477
|
)
|
Adjusted PAT
|
|
|
54
|
|
|
|
3,227
|
|
|
|
|
|
48
|
|
|
|
2,883
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Q1 FY14 normalized to the FY14 annual effective tax rate and Q1
FY13 normalized to the FY13 annual effective tax rate
Segmental Analysis
Global Generics
Revenues from Global Generics segment at Rs. 21.9 billion recorded a YoY
growth of 15%. Growth was primarily driven by North America and Emerging
market territories.
-
Revenues from North America at Rs. 10.9 billion, recorded a YoY
growth of 37%. Growth was primarily driven by:
-
Key difficult to synthesize products with limited competition
launched during rest of the quarters of the previous year, i.e.
montelukast granules, finasteride 1mg, isotretinoin, zoledronic
acid (4mg/5mL), metoprolol succinate extended release, etc.
-
Two new products which have been launched during the quarter –
zoledronic acid (5mg/100mL) injection and lamotrigine XL.
-
Significant traction in market share of products such as
tacrolimus, fondaparinux, etc. on a YoY basis.
During the quarter, 2 ANDAs were filed. Cumulatively, 64 ANDAs are
pending for approval with the USFDA of which 38 are Para IVs and we
believe 8 to have ‘First To File’ status.
-
Revenues from Emerging Markets (which include Russia, CIS
countries and RoW territories) for Q1 FY14 at Rs. 6.0 billion, YoY
growth of 9%.
-
Revenues from Russia at Rs. 3.7 billion, YoY growth of 4%. Growth
was muted primarily on account of high base effect of the previous
year and changes in the market stocking pattern.
-
Revenues from CIS markets at Rs. 0.8 billion, YoY growth of 28%.
Growth was largely driven by volume uptake of existing products
and introduction of new products in Ukraine.
-
Revenues from RoW territories stood at Rs. 1.5 billion, YoY growth
of 12% despite the devaluation impact in Venezuela.
-
Revenues from India for Q1 FY14 at Rs. 3.5
billion remained flat YoY.
-
Revenues from Europe for Q1 FY14 at Rs. 1.6 billion declined
YoY by 28%.
-
Revenues from Germany for Q1 FY14 at Rs. 1.1 billion declined YoY
by 26%.
Pharmaceutical Services and Active Ingredients (PSAI)
-
Revenues from PSAI for Q1 FY14 at Rs. 5.9 billion, YoY growth of 6%.
Muted growth on the back of lower number of ‘launch molecules’ to our
customers during the quarter.
-
During the quarter, 5 DMFs were filed globally, including 3 in the US.
The cumulative number of DMF filings as of June 30, 2013 is 581.
Income Statement Highlights:
-
Gross profit margin for Q1 FY14 stood at 52.8%, marginal drop of 50
basis points compared to Q1 FY13. Corresponding values for Global
Generics and PSAI segments for the quarter are at 61.6% and 19%
respectively. GG gross margin improved primarily on account of higher
contribution from new product launches in North America Generics,
where as PSAI gross margin declined, primarily on the back of lower
number of launch molecules to our customers and relatively higher
overheads during the quarter.
-
Selling, general and administration (SG&A) expenses including
amortization at Rs. 8.8 billion increased YoY by only 6%. SG&A
expenses for Q1 FY14 stood at 30.9% to sales as compared to 32.6% to
sales in Q1 FY13.
-
Research & development expenses stood at Rs. 2.4 billion, YoY growth
of 55%; 8.5% of revenues in Q1 FY14 as compared to 6.2% of revenues in
Q1 FY13. The increase is in line with the increased focus on complex
formulations, differentiated portfolio and biosimilars.
-
Net Finance expense is at Rs. 70 million in Q1 FY14 compared to Rs.
212 million in Q1 FY13. The change is on account of:
-
Net forex loss of Rs. 131 million in Q1 FY14 as compared to Rs.
209 million in Q1 FY13.
-
Net interest income of Rs. 61 million in Q1 FY14 compared to net
interest expense of Rs. 3 million in Q1 FY13.
-
EBITDA for Q1 FY14 at Rs. 5.7 billion, 20% of revenues with a YoY
growth of 13%.
-
Profit after Tax in Q1 FY14 at Rs. 3.6 billion, 13% of revenues with a
YoY growth of 7%.
-
*Adjusted Profit after tax in Q1 FY14 at Rs. 3.2 billion, YoY growth
of 12%.
-
Diluted earnings per share in Q1 FY 14 are Rs. 21.17
-
Capital expenditure for Q1 FY14 is Rs. 2.0 billion.
* Q1 FY14 normalized to the FY14 annual effective tax rate and Q1
FY13 normalized to the FY13 annual effective tax rate
All US dollar figures based on convenience translation rate of
1USD = Rs. 59.52
|
|
|
Appendix 1: Key Balance Sheet Items
|
(in millions)
|
|
|
|
|
|
|
|
Particulars
|
|
|
As on 30th June 2013
|
|
|
As on 31st March 2013
|
|
|
($)
|
|
|
(Rs.)
|
|
|
($)
|
|
|
(Rs.)
|
Cash and cash equivalents and current investments
|
|
|
502
|
|
|
|
29,907
|
|
|
371
|
|
|
|
22,099
|
Trade receivables
|
|
|
490
|
|
|
|
29,168
|
|
|
537
|
|
|
|
31,972
|
Inventories
|
|
|
379
|
|
|
|
22,536
|
|
|
363
|
|
|
|
21,600
|
Property, plant and equipment
|
|
|
662
|
|
|
|
39,393
|
|
|
635
|
|
|
|
37,814
|
Goodwill and other Intangible assets
|
|
|
248
|
|
|
|
14,787
|
|
|
236
|
|
|
|
14,021
|
Loans and borrowings (current & non-current)
|
|
|
738
|
|
|
|
43,937
|
|
|
616
|
|
|
|
36,678
|
Trade payables
|
|
|
169
|
|
|
|
10,076
|
|
|
199
|
|
|
|
11,862
|
Total Equity
|
|
|
1,261
|
|
|
|
75,051
|
|
|
1,223
|
|
|
|
72,805
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appendix 2: Revenue Mix by Segment
|
|
(in millions)
|
|
|
|
|
Q1 FY14
|
|
|
Q1 FY13
|
|
|
Growth %
|
|
|
($)
|
|
|
(Rs.)
|
|
|
%
|
|
|
($)
|
|
|
(Rs.)
|
|
|
%
|
|
|
Global Generics
|
|
|
368
|
|
|
|
21,903
|
|
|
77
|
|
|
320
|
|
|
|
19,066
|
|
|
75
|
|
|
15
|
|
North America
|
|
|
|
|
|
10,871
|
|
|
50
|
|
|
|
|
|
7,920
|
|
|
42
|
|
|
37
|
|
Europe
|
|
|
|
|
|
1,573
|
|
|
7
|
|
|
|
|
|
2,178
|
|
|
11
|
|
|
(28
|
)
|
India
|
|
|
|
|
|
3,493
|
|
|
16
|
|
|
|
|
|
3,482
|
|
|
18
|
|
|
0
|
|
Russia & Other CIS
|
|
|
|
|
|
4,489
|
|
|
20
|
|
|
|
|
|
4,167
|
|
|
22
|
|
|
8
|
|
RoW
|
|
|
|
|
|
1,477
|
|
|
7
|
|
|
|
|
|
1,319
|
|
|
7
|
|
|
12
|
|
PSAI
|
|
|
99
|
|
|
|
5,868
|
|
|
21
|
|
|
93
|
|
|
|
5,527
|
|
|
22
|
|
|
6
|
|
North America
|
|
|
|
|
|
1,093
|
|
|
19
|
|
|
|
|
|
1,064
|
|
|
19
|
|
|
3
|
|
Europe
|
|
|
|
|
|
2,093
|
|
|
36
|
|
|
|
|
|
2,233
|
|
|
40
|
|
|
(6
|
)
|
India
|
|
|
|
|
|
791
|
|
|
13
|
|
|
|
|
|
611
|
|
|
11
|
|
|
29
|
|
RoW
|
|
|
|
|
|
1,891
|
|
|
32
|
|
|
|
|
|
1,619
|
|
|
29
|
|
|
17
|
|
Proprietary Products & Others
|
|
|
11
|
|
|
|
679
|
|
|
2
|
|
|
14
|
|
|
|
813
|
|
|
3
|
|
|
(16
|
)
|
Total
|
|
|
478
|
|
|
|
28,449
|
|
|
100
|
|
|
427
|
|
|
|
25,406
|
|
|
100
|
|
|
12
|
|
Disclaimer
This press release includes forward-looking statements, as defined in
the U.S. Private Securities Litigation Reform Act of 1995. We have based
these forward-looking statements on our current expectations and
projections about future events. Such statements involve known and
unknown risks, uncertainties and other factors that may cause actual
results to differ materially. Such factors include, but are not limited
to, changes in local and global economic conditions, our ability to
successfully implement our strategy, the market acceptance of and demand
for our products, our growth and expansion, technological change and our
exposure to market risks. By their nature, these expectations and
projections are only estimates and could be materially different from
actual results in the future.
About Dr. Reddy's
Dr. Reddy’s Laboratories Ltd. (NYSE: RDY) is an integrated global
pharmaceutical company, committed to providing affordable and innovative
medicines for healthier lives. Through its three businesses -
Pharmaceutical Services and Active Ingredients, Global Generics and
Proprietary Products – Dr. Reddy’s offers a portfolio of products and
services including APIs, custom pharmaceutical services, generics,
biosimilars and differentiated formulations. Major therapeutic focus is
on gastro-intestinal, cardiovascular, diabetology, oncology, pain
management and anti-infective. Major markets include India, USA,
Russia-CIS and Europe apart from other select geographies within
Emerging Markets.
For more information, log on to: www.drreddys.com
Note: All discussions in this release are based on unaudited
consolidated IFRS financials.
Copyright Business Wire 2013