Dr. Reddy's Q2 FY24 Financial Results
HYDERABAD, India--(BUSINESS WIRE)--October 27, 2023--
Dr. Reddy's Laboratories Ltd. (BSE: 500124 | NSE: DRREDDY | NYSE: RDY | NSEIFSC: DRREDDY) today announced its consolidated financial results for the quarter ended Sep 30, 2023. The information mentioned in this release is based on consolidated financial statements under International Financial Reporting Standards (IFRS).
Revenues Rs. 68,802 Mn
[Up: 9% YoY; Up: 2% QoQ]
Gross Margin 58.7%
[Q2 FY23: 59.1%; Q1 FY24: 58.7%]
SG&A Expenses Rs. 18,795 Mn
[Up: 13% YoY; 6% QoQ]
R&D Expenses Rs. 5,447 Mn
[7.9% of Revenues]
EBITDA Rs. 21,813 Mn
[31.7% of Revenues]
Profit before Tax Rs. 19,134 Mn
[Up: 19% YoY; Up: 4% QoQ]
Profit after Tax Rs. 14,800 Mn
[Up: 33% YoY; Up: 6% QoQ]
------------------ ---------------------------------
Commenting on the results, Co-Chairman & MD, G V Prasad said: "We delivered another quarter of strong results with highest ever sales and profits, driven by market share gains & momentum in our US generics business and robust growth in Europe. We are continuing to strengthen our pipeline both organically and through business development to drive growth and create differentiation."
All amounts in millions, except EPS All US dollar amounts based on
convenience translation rate of 1 USD =
Rs. 83.08
Dr. Reddy's Laboratories Limited and Subsidiaries
------------------------------------------------------------------------------
Consolidated Income Statement
YoY QoQ
Particulars Q2 FY24 Q2 FY23 Gr % Q1 FY24 Gr%
----------------------- ------------ ------------ ----- ------------ ----
($) (Rs.) ($) (Rs.) ($) (Rs.)
----------------------- ---- ------ ---- ------ ----- ---- ------ ----
Revenues 828 68,802 759 63,057 9 811 67,384 2
Cost of Revenues 342 28,434 311 25,810 10 335 27,831 2
----------------------- ---- ------ ---- ------ ----- ---- ------ ----
Gross Profit 486 40,368 448 37,247 8 476 39,553 2
----------------------- ---- ------ ---- ------ ----- ---- ------ ----
Operating Expenses
Selling, General &
Administrative
expenses 226 18,795 199 16,560 13 213 17,702 6.2
Research and
Development expenses 66 5,447 59 4,869 12 60 4,984 9
Impairment of
non-current assets 1 55 0 25 120 0 11 400
Other operating
(income)/expense (22) (1796) (4) (334) 438 (9) (780) 130
----------------------- ---- ------ ---- ------ ----- ---- ------ ----
Results from operating
activities 215 17,867 194 16,127 11 212 17,636 1
----------------------- ---- ------ ---- ------ ----- ---- ------ ----
Net finance
(income)/expense (15) (1225) 2 156 (885) (9) (784) 56
Share of profit of
equity accounted
investees (1) (42) (2) (140) (70) (1) (43) (2)
----------------------- ---- ------ ---- ------ ----- ---- ------ ----
Profit before income
tax 230 19,134 194 16,111 19 222 18,463 4
----------------------- ---- ------ ---- ------ ----- ---- ------ ----
Income tax expense 52 4,334 60 4983 (13) 53 4,438 (2)
----------------------- ---- ------ ---- ------ ----- ---- ------ ----
Profit for the period 178 14,800 134 11,128 33 169 14,025 6
----------------------- ---- ------ ---- ------ ----- ---- ------ ----
Diluted Earnings Per
Share (EPS) 1.07 88.78 0.81 66.89 33 1.01 84.22 5
----------------------- ---- ------ ---- ------ ----- ---- ------ ----
As % to revenues Q2 FY24 Q2 FY23 Q1 FY24
------------------ -------- -------- --------
Gross Profit 58.7 59.1 58.7
SG&A 27.3 26.3 26.3
R&D 7.9 7.7 7.4
EBITDA 31.7 30.6 31.7
PBT 27.8 25.5 27.4
PAT 21.5 17.6 20.8
------------------- -------- -------- --------
EBITDA Computation
Particulars Q2 FY24 Q2 FY23 Q1 FY24
--------------------------------- ------------- ----------- -----------
($) (Rs.) ($) (Rs.) ($) (Rs.)
--------------------------------- ---- ------- --- ------ --- ------
Profit before Income Tax 230 19,134 194 16,111 222 18,463
Interest (income) / expense -
Net* (14) (1,166) 1 61 (8) (685)
Depreciation 29 2,437 25 2,107 27 2,281
Amortization 16 1,353 12 1,018 16 1,302
Impairment 0 55 0 25 0 11
--------------------------------- ---- ------- --- ------ --- ------
EBITDA 262 21,813 233 19,322 257 21,372
--------------------------------- ---- ------- --- ------ --- ------
* Includes income from
Investments
All amounts in millions, except EPS All US dollar amounts based on
convenience translation rate of 1 USD
= Rs. 83.08
Key Balance Sheet Items
As on 30(th) As on 30(th) Jun As on 30(th) Sep
Particulars Sep 2023 2023 2022
------------------------- --------------- ---------------- ----------------
($) (Rs.) ($) (Rs.) ($) (Rs.)
------------------------- ----- -------- ------ -------- ------ --------
Cash and cash
equivalents and other
investments 840 69,784 736 61,162 353 29,306
------------------------- ----- -------- ------ -------- ------ --------
Trade receivables 839 69,722 928 77,095 927 76,987
------------------------- ----- -------- ------ -------- ------ --------
Inventories 681 56,592 631 52,398 590 49,042
------------------------- ----- -------- ------ -------- ------ --------
Property, plant, and
equipment 848 70,478 809 67,207 768 63,817
------------------------- ----- -------- ------ -------- ------ --------
Goodwill and Other
Intangible assets 497 41,278 509 42,306 434 36,084
------------------------- ----- -------- ------ -------- ------ --------
Loans and borrowings
(current &
non-current) 159 13,230 151 12,520 208 17,289
------------------------- ----- -------- ------ -------- ------ --------
Trade payables 367 30,485 333 27,682 274 22,778
------------------------- ----- -------- ------ -------- ------ --------
Equity 3,046 2,53,086 2,952 2,45,259 2,482 2,06,225
------------------------- ----- -------- ------ -------- ------ --------
Revenue Mix by Segment
YoY QoQ
Segment Q2 FY24 Q2 FY23 Gr % Q1 FY24 Gr %
------------------------------------- ------- ------- ----- ------- -----
(Rs.) (Rs.) (Rs.)
------------------------------------- ------- ------- ----- ------- -----
Global Generics 61,084 55,946 9 60,083 2
------------------------------------- ------- ------- ----- ------- -----
North America 31,700 28,001 13 31,978 (1)
------------------------------------- ------- ------- ----- ------- -----
Europe 5,286 4,199 26 5,071 4
------------------------------------- ------- ------- ----- ------- -----
India 11,860 11,500 3 11,482 3
------------------------------------- ------- ------- ----- ------- -----
Emerging Markets 12,163 12,246 (1) 11,552 5
------------------------------------- ------- ------- ----- ------- -----
Pharmaceutical Services and Active
Ingredients (PSAI) 7,034 6,434 9 6,709 5
------------------------------------- ------- ------- ----- ------- -----
Others 684 677 1 592 15
------------------------------------- ------- ------- ----- ------- -----
Total 68,802 63,057 9 67,384 2
------------------------------------- ------- ------- ----- ------- -----
Revenue Analysis [Q2 FY24]
Global Generics $(GG)$
-- Q2 FY24 revenue at Rs. 61.1 billion, YoY growth of 9% and QoQ growth of
2%. This growth was primarily driven by North America and Europe.
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