Press Release

CONTACT

INVESTOR RELATIONS

MEDIA RELATIONS

SAUNAK SAVLA

saunaks@drreddys.com(Ph: +91-40-4900 2135)

CALVIN PRINTER

calvinprinter@drreddys.com(Ph: +91-40-4900 2121)

DR. REDDY'S LABORATORIES LTD.

  1. , Road No. 3, Banjara Hills, Hyderabad - 500034. Telangana, India.

    Dr. Reddy's Q3 and 9M FY17 Financial Results Q3 Revenues at `37.1 Bn

    [QoQ growth: 3%]

    Q3 EBITDA at `8.8 Bn

    [23.7% of Revenues]

    9M Revenues at `105.3 Bn

    [YoY decline: 10%]

    9M EBITDA at `19.2 Bn

    [18.2% of Revenues]

    Hyderabad, India, February 4, 2017: 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 `37.1 billion: QoQ growth: 3%

      YoY decline: 7%

    • Gross Profit Margin at 59.1%.

    • Research & Development (R&D) spend at `5.0 billion. [13.4% of Revenues]

    • Selling, general & administrative (SG&A) expenses at `11.3 billion [YoY decline: 6%]

    • EBITDA at `8.8 billion [23.7% of Revenues]

    • Profit after tax at `4.7 billion [12.7% of Revenues]

      9M FY17: Key Highlights

    • Revenues at `105.3 billion: YoY decline: 10%

    • Gross Profit Margin at 57.2%.

    • Research & Development (R&D) spend at `15.0 billion. [14.2% of Revenues]

    • Selling, general & administrative (SG&A) expenses at `35.4 billion [YoY increase: 4%]

    • EBITDA at `19.2 billion [18.2% of Revenues]

    • Profit after tax at `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."

Dr. Reddy's Laboratories Limited and Subsidiaries Consolidated Income Statement

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

167

11,341

30.6

177

12,039

30.3

(6)

Selling, general & administrative expenses

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)

- -

Diluted EPS

0.42

28.32

0.50

33.86

(16)

EBITDA Computation

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%

* Includes income from Investments

Key Balance Sheet Items

Particulars

As on 31stDec 16

As on 30thSep 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

Revenue Mix by Segment [Year on year]

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

Revenue Mix by Segment [Sequential]

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

5,947

6,251

-5

Emerging Markets#

5,948

4,834

23

PSAI

80

5,400

14

85

5,784

16

-7

North America

1,259

1,135

11

Europe

1,828

2,095

-13

India

409

575

-29

Rest of World

1,904

1,979

-4

Proprietary Products & Others

15

1,027

3

16

1,078

3

-5

Total

546

37,065

100

528

35,857

100

3

  • Europe primarily includes Germany, UK and out licensing sales business

    # Emerging Markets refers to Russia, other CIS countries, Romania and Rest of the World markets including Venezuela

    Segmental Analysis

    Global Generics (GG)

    Revenues from GG segment at `30.6 billion, year-on-year decline of 9%; primarily on account of lower contribution from North America and Venezuela. However, it grew by 6% sequentially.

    • Revenues from North America at `16.6 billion. Year-on-year decline of 15%, primarily on account of increased competition in valgancyclovir and our injectables franchise coupled with continuing pricing pressure.

      During the quarter we launched 5 new products i.e. Aripiprazole, Lamotrigene ODT, Fluoxetine Tabs, Raloxifene HCl and Nystatin - Triamcinolone Cream.

      As of 31stDecember 2016, cumulatively 92 generic filings are pending for approval with the USFDA (90 ANDAs and 2 NDAs under 505(b)(2) route). Of these 90 ANDAs, 59 are Para IVs out of which we believe 20 have 'First to File' status. Further, these 90 ANDAs include 7 ANDAs, acquired from Teva, of which 6 are Para IVs.

    • Revenues from Emerging Markets at `5.9 billion, year-on-year decline of 7%. [Ex-Venezuela: growth of 7%]

      • Revenues from Russia at `3.1 billion, year-on-year decline of 2%. In constant currency it declined by 5%.

      • Revenues from other CIS countries and Romania market at `1.0 billion, year-on-year growth of 16%.

      • Revenues from Rest of World (RoW) territories at `1.8 billion, year-on-year decline of 23% primarily on account of sales decline in Venezuela.

    • Revenues from India at `5.9 billion, year-on-year growth: 2.4%.

    • Revenues from Europe at `2.1 billion, year-on-year growth: 11%.

      Pharmaceutical Services and Active Ingredients (PSAI)

    • Revenues from PSAI at `5.4 billion, year-on-year growth of 6%. On a sequential basis revenues declined by 7%.

    • During the quarter, 16 DMFs were filed globally of which 1 was in the US. The cumulative number of DMF filings as of 31stDecember, 2016 was 782.

Proprietary Products (PP)

Zembrace™Sym Touch ™(Suma 3 mg) injection and Sernivo™ (betamethasone dipropionate) Spray, 0.05% are gradually gaining traction in prescriptions.

Dr. Reddy's Laboratories Limited published this content on 04 February 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 06 February 2017 08:17:02 UTC.

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