RDY Dr Reddys Laboratories Ltd

Dr. Reddy’s Laboratories Ltd. (BSE: 500124 | NSE: DRREDDY | NYSE: RDY | NSEIFSC: DRREDDY) today announced its consolidated financial results for the quarter and half year ended September 30, 2024. The information mentioned in this release is based on consolidated financial statements under International Financial Reporting Standards (IFRS).

Q2FY25

H1FY25

  Revenues

₹ 80,162 Mn

[Up: 17% YoY; 4% QoQ]

₹ 156,889 Mn

[Up: 15% YoY]

  Gross Margin

59.6%

[Q2FY24: 58.7%; Q1FY25: 60.4%]

60.0%

[H1FY24: 58.7%]

  SG&A Expenses

₹ 23,007 Mn

[Up: 22% YoY; 1% QoQ]

₹ 45,698 Mn

[Up: 25% YoY]

  R&D Expenses

₹ 7,271 Mn

[9.1% of Revenues]

₹ 13,464 Mn

[8.6% of Revenues]

  EBITDA

₹ 22,803 Mn

[28.4% of Revenues]

₹ 44,402 Mn

[28.3% of Revenues]   Profit before Tax

₹ 19,167 Mn

[Flat YoY; Up: 2% QoQ]

₹ 37,988 Mn

[Up: 1% YoY]

  Profit after Taxbefore Non-Controlling Interest

₹ 13,415 Mn

[Down: 9% YoY; 4% QoQ]

₹ 27,335 Mn

[Down: 5% YoY]

  Profit after Taxattributable to Equity Holders

₹ 12,553 Mn

[Down: 15% YoY; 10% QoQ]

₹ 26,473 Mn

[Down: 8% YoY]

 

Commenting on the results, Co-Chairman & MD, G V Prasad said: “We delivered another good quarter and maintained the growth momentum across businesses. We made progress on our future growth drivers, operationalized our venture with Nestlé and completed the acquisition of Nicotinell® and related brands. We will continue to drive efficiency, strengthen our core businesses, and positively impact patient lives through science and innovation.”

All amounts in millions, except EPS All US dollar amounts based on convenience translation rate of 1 USD = ₹83.76

Dr. Reddy’s Laboratories Limited & Subsidiaries

Revenue Mix by Segment for the quarter

Particulars

Q2FY25

Q2FY24

YoY Gr %

Q1FY25

QoQ Gr%

(₹)

(₹)

(₹)

Global Generics

71,576

61,084

17

68,858

4

North America

37,281

31,775

17

38,462

(3)

Europe

5,770

5,286

9

5,265

10

India

13,971

11,860

18

13,252

5

Emerging Markets

14,554

12,163

20

11,878

23

Pharmaceutical Services and Active Ingredients (PSAI)

8,407

7,034

20

7,657

10

Others

179

684

(74)

212

(16)

Total

80,162

68,802

17

76,727

4

 

Revenue Mix by Segment for the half year

Particulars

H1FY25

H1FY24

YoY Gr%

(₹)

(₹)

Global Generics

140,434

121,167

16

North America

75,743

63,776

19

Europe

11,035

10,333

7

India

27,223

23,342

17

Emerging Markets

26,433

23,716

11

PSAI

16,064

13,743

17

Others

391

1,276

(69)

Total

156,889

136,186

15

 

Consolidated Income Statement for the quarter

Particulars

Q2FY25

Q2FY24

YoY Gr %

Q1FY25

QoQ Gr%

($)

(₹)

($)

(₹)

($)

(₹)

Revenues

957

80,162

821

68,802

17

916

76,727

4

Cost of Revenues

387

32,393

339

28,434

14

363

30,383

7

Gross Profit

570

47,769

482

40,368

18

553

46,344

3

% of Revenues

 

59.6%

 

58.7%

 

 

60.4%

 

Selling, General & Administrative Expenses

275

23,007

224

18,795

22

271

22,691

1

% of Revenues

 

28.7%

 

27.3%

 

 

29.6%

 

Research & Development Expenses

87

7,271

65

5,447

33

74

6,193

17

% of Revenues

 

9.1%

 

7.9%

 

 

8.1%

 

Impairment of Non-Current Assets, net

11

924

1

55

1580

0

5

 

Other (Income)/Expense, net

(12)

(984)

(21)

(1,796)

(45)

(6)

(470)

109

Results from Operating Activities

210

17,551

213

17,867

(2)

214

17,925

(2)

Finance (Income)/Expense, net

(19)

(1,555)

(15)

(1,225)

27

(10)

(837)

86

Share of Profit of Equity Accounted Investees, net of tax

(1)

(61)

(1)

(42)

45

(1)

(59)

3

Profit before Income Tax

229

19,167

228

19,134

0

225

18,821

2

% of Revenues

 

23.9%

 

27.8%

 

 

24.5%

 

Income Tax Expense

69

5,752

52

4,334

33

59

4,901

17

Profit for the Period

160

13,415

177

14,800

(9)

166

13,920

(4)

% of Revenues

 

16.7%

 

21.5%

 

 

18.1%

 

Attributable to Equity holders of the parent company

150

12,553

177

14,800

(15)

166

13,920

(10)

Attributable to Non-controlling interests

10

862

-

-

-

-

-

-

Diluted Earnings per Share (EPS)^

0.18

15.04

0.21

17.76

(15)

0.20

16.69

(9)

^Historical numbers re-casted basis the increased number of shares post share split

EBITDA Computation for the quarter

Particulars

Q2FY25

Q2FY24

Q1FY25

($)

(₹)

($)

(₹)

($)

(₹)

Profit before Income Tax

229

19,167

228

19,134

225

18,821

Interest (Income) / Expense, net*

(15)

(1,262)

(14)

(1,166)

(12)

(1,037)

Depreciation

31

2,629

29

2,437

30

2,508

Amortization

16

1,346

16

1,353

16

1,302

Impairment

11

924

1

55

0

5

EBITDA

272

22,803

260

21,813

258

21,599

% of Revenues

 

28.4%

 

31.7%

 

28.2%

 

*Includes income from Investment

Consolidated Income Statement for the half year

Particulars

H1FY25

H1FY24

YoY Gr %

($)

(₹)

($)

(₹)

Revenues

1,873

156,889

1,626

136,186

15

Cost of Revenues

749

62,776

672

56,265

12

Gross Profit

1,124

94,113

954

79,921

18

% of Revenues

 

60.0%

 

58.7%

 

Selling, General & Administrative Expenses

546

45,698

436

36,497

25

% of Revenues

 

29.1%

 

26.8%

 

Research & Development Expenses

161

13,464

125

10,431

29

% of Revenues

 

8.6%

 

7.7%

 

Impairment of Non-Current Assets, net

11

929

1

66

1308

Other (Income)/Expense, net

(17)

(1,454)

(31)

(2,576)

(44)

Results from Operating Activities

424

35,476

424

35,503

(0)

Finance (Income)/Expense, net

(29)

(2,392)

(24)

(2,009)

19

Share of Profit of Equity Accounted Investees, net of tax

(1)

(120)

(1)

(85)

41

Profit before Income Tax

454

37,988

449

37,597

1

% of Revenues

 

24.2%

 

27.6%

 

Income Tax Expense

127

10,653

105

8,772

21

Profit for the Period

326

27,335

344

28,825

(5)

% of Revenues

 

17.4%

 

21.2%

 

Attributable to Equity holders of the parent company

316

26,473

344

28,825

(8)

Attributable to Non-controlling interests

10

862

-

-

-

Diluted Earnings per Share (EPS)^

0.39

31.73

0.41

34.58

(8)

^Historical numbers re-casted basis the increased number of shares post share split

EBITDA Computation for the half year

Particulars

H1FY25

H1FY24

($)

(₹)

($)

(₹)

Profit before Income Tax

454

37,988

449

37,597

Interest (Income) / Expense, net*

(27)

(2,300)

(22)

(1,851)

Depreciation

61

5,137

56

4,718

Amortization

32

2,648

32

2,656

Impairment

11

929

1

66

EBITDA

530

44,402

516

43,186

% of Revenues

 

28.3%

 

31.7%

 

Key Balance Sheet Items

Particulars

As on 30th Sep 2024

As on 30th Jun 2024

As on 30th Sep 2023

($)

(₹)

($)

(₹)

($)

(₹)

Cash and Cash Equivalents and Other Investments

767

64,274

1,141

95,599

833

69,784

Trade Receivables

1,008

84,398

968

81,088

832

69,722

Inventories

860

72,039

819

68,568

676

56,592

Property, Plant, and Equipment

1,035

86,693

959

80,343

841

70,478

Goodwill and Other Intangible Assets

1,240

103,892

494

41,374

493

41,278

Loans and Borrowings (Current & Non-Current)

580

48,540

366

30,675

158

13,230

Trade Payables

427

35,776

407

34,109

364

30,485

Equity

3,692

309,283

3,518

294,627

3,022

253,086

Key Business Highlights [for Q2FY25]

• Completed acquisition of the Nicotine Replacement Therapy (‘NRT’) portfolio outside of the United States and paid upfront cash consideration of GBP 458 million.
• Operationalized, Dr. Reddy’s and Nestlé Health Science Limited, in August 2024 to undertake the business of nutraceutical products and supplements in India and Nepal. 49% of the shares in the subsidiary transferred to Nestlé India.
• Secured Marketing Authorization from European Commission for our rituximab biosimilar, following a positive opinion from the CHMP of the European Medicines Agency.
• Received approval from the USFDA for Investigational New Drug (IND) application for AUR-112, a highly differentiated potent and selective inhibitor of MALT1, being developed for treatment of lymphoid malignancies.
• Entered into a non-exclusive patent licensing agreement with Takeda to commercialise Vonoprazan, a novel gastrointestinal drug, in India.

ESG & other Updates [for Q2FY25]

• Recognised amongst ‘Top 15’ India's Most Sustainable Companies, 2024 by Businessworld India
• Received ‘ESG Excellence Award’ 2024 in the ‘Large-cap Pharmaceuticals & Healthcare’ category by KPMG India
• ‘Voluntary Action Indicated’ (VAI) classification by the United States Food and Drug Administration (USFDA) for two of our formulations manufacturing facilities in Duvvada, Visakhapatnam (FTO 7 and FTO 9), following their routine GMP inspection in May 2024 as well as our API manufacturing facility (CTO-6) in Srikakulam, Andhra Pradesh, following their GMP Inspection in June 2024.
• Product-specific Pre-Approval Inspection (PAI) completed by the USFDA at our formulations manufacturing facility (FTO SEZ PU1) in Srikakulam, Andhra Pradesh in August 2024 and issued a Form 483 with three observations. The response to the observations were submitted within stipulated timelines.
• Routine Good Manufacturing Practice (GMP) inspection concluded by the USFDA at our R&D centre in Bachupally, Hyderabad in September, 2024, with zero observations.
• Alteration in share capital of the Company by sub-division/ split of existing equity shares of face value of ₹5 each, fully paid up, including the American Depository Shares, into 5 equity shares of ₹1 each, fully paid-up, approved by the shareholders as well as the Board of Directors of the Company.

Revenue Analysis

• Q2FY25 consolidated revenues at ₹80.2 billion, YoY growth of 17% and sequential growth of 4%. YoY growth was primarily driven by growth in global generics revenues. QoQ growth was primarily driven by global generics revenues in Emerging Markets, India, Europe as well as PSAI. H1FY25 consolidated revenues at ₹156.9 billion, YoY growth of 15%. The growth was driven by strong performances in global generics in North America, India, Emerging Markets as well as PSAI.

Global Generics (GG)

• Q2FY25 revenues at ₹71.6 billion, YoY growth of 17% and QoQ growth of 4%. YoY growth was broad-based, driven by improved sales volumes and new product launches. Sequential growth was primarily driven by Emerging Markets and Europe. H1FY25 revenues at ₹140.4 billion, a YoY growth of 16%. The growth was across all markets, driven by increase in sales volumes.

North America

• Q2FY25 revenues at ₹37.3 billion, YoY growth of 17% and QoQ decline of 3%. YoY growth was largely on account of increase in sales volumes, partly offset by price erosion. Sequential decline was due to decrease in sales volumes. H1FY25 revenues at ₹75.7 billion, YoY growth of 19%. The growth was largely on account of increase in sales volumes, partially offset by price erosion.

• During the quarter, we launched four new products in the region, all of which were launched in the U.S. A total of 7 products were launched during the half year ended September 30, 2024.
• During the quarter, we filed two new Abbreviated New Drug Applications (ANDAs) with the USFDA, taking our year-to-date ANDA filing count to three. As of September 30, 2024, 80 generic filings were pending approval from the USFDA. These comprise of 75 ANDAs and five New Drug Applications (NDAs) filed under Section 505(b)(2) route of the US Federal Food, Drug, and Cosmetic Act. Of the 75 ANDAs, 44 are Paragraph IV applications, and we believe that 22 of these have the ‘First to File’ status.

Europe

• Q2FY25 revenues at ₹5.8 billion, YoY growth of 9% and QoQ growth of 10%. YoY growth was primarily on account of leveraging the portfolio to launch new products, partly offset by price erosion. QoQ growth was primarily on account of new product launches.

- Germany at ₹3.2 billion, YoY growth of 21% and QoQ growth of 16%. - UK at ₹1.6 billion, YoY decline of 7% and QoQ growth of 3%. - Rest of Europe at ₹0.9 billion, YoY growth of 4% and QoQ growth of 2%.

H1FY25 revenues at ₹11.0 billion, YoY growth of 7%. The growth was primarily on account of new product launches and momentum in base business, partly offset by price erosion.

- Germany at ₹6.0 billion, YoY growth of 17%. - UK at ₹3.2 billion, YoY decline of 7%. - Rest of Europe at ₹1.8 billion, YoY growth of 2%.

• During the quarter, we launched 8 new products in the region, taking the year-to-date total to 20.

India

• Q2FY25 revenues at ₹14.0 billion, YoY growth of 18% and QoQ growth of 5%. YoY growth was led by revenues from the vaccine portfolio in-licensed from Sanofi, new products launched as well as price increases. QoQ growth was on account of increase in sales volumes and price, as well as new product launches. As per IQVIA, our IPM rank was maintained at 10 for the quarter.
• H1FY25 revenues at ₹27.2 billion, YoY growth of 17%. YoY growth was largely on account of revenues from in-licensed vaccine portfolio, new products launched as well as higher prices.
• During the quarter, we launched three new brands in the country, taking the year-to-date total to 16. We also integrated the nutraceutical products under our subsidiary, ‘Dr. Reddy’s and Nestlé Health Science Limited’ during the quarter.

Emerging Markets

• Q2FY25 revenues at ₹14.6 billion, YoY growth of 20% and QoQ growth of 23%. YoY growth is attributable to market share expansion as well as new product launches. QoQ growth was primarily due to higher volumes in the base business.

- Revenues from Russia at ₹6.9 billion, YoY growth of 18% and QoQ growth of 24%.

- YoY growth was due to higher sales volumes and price and new product launches, partly offset by unfavorable currency exchange rate movements. - QoQ growth was largely on account of market share expansion.

- Revenues from other Commonwealth of Independent States (CIS) countries and Romania at ₹2.1 billion, YoY decline of 2% and QoQ growth of 12%.

- YoY decline was primarily on account of decline in base business volumes. - QoQ growth was largely driven by higher base business volumes and increase in prices.

- Revenues from Rest of World (RoW) territories at ₹5.6 billion, YoY growth of 32% YoY and QoQ growth of 26%.

- YoY growth was due to momentum in base business and contribution from new products. - QoQ growth was largely driven by increase in base business volumes.

• H1FY25 revenues at ₹26.4 billion, YoY growth of 11%. The growth is attributable to market share expansion and new product launches, partly offset by unfavorable forex.

- Revenues from Russia at ₹12.4 billion, YoY growth of 9%. The growth was largely on account of price increases in certain brands and improved volumes, partially offset by unfavorable currency exchange rate movements. - Revenues from other CIS countries and Romania at ₹4.1 billion, YoY decline of 2%. The decline was largely on account of lower sales volumes. - Revenues from RoW territories at ₹10.0 billion, YoY growth of 22%. The growth is largely attributable to higher base business volumes and new product launches.

• During the quarter, we launched 22 new products across various countries in the region, taking the year-to-date total to 39.

Pharmaceutical Services and Active Ingredients (PSAI)

• Q2FY25 revenues at ₹8.4 billion, YoY growth of 20% and QoQ growth of 10%. YoY and QoQ growth was mainly driven by momentum in base business volumes, growth in services business and revenues from new products.
• H1FY25 revenues at ₹16.1 billion, with a growth of 17% YoY. The growth was mainly driven by market share expansion, growth in services business and revenues from new products.
• During the quarter, we filed 22 Drug Master Files (DMFs) globally, taking the year-to-date count to 36.

Income Statement Highlights:

Gross Margin

• Q2FY25 at 59.6% (GG: 63.1%, PSAI: 30.0%), a YoY increase of 92 basis points (bps) and a QoQ decline of 81 bps. The YoY increase was on account of improvement in product mix and overhead leverage, partly offset by price erosion. On a sequential basis, the decline was primarily on account of change in mix. H1FY25 at 60.0% (GG: 63.9%, PSAI: 26.7%), a YoY increase by 130 bps YoY. The expansion in margin was on account of favourable product mix and productivity cost savings, partially offset by price erosion in select markets.

Selling, General & Administrative (SG&A) Expenses

• Q2FY25 at ₹23.0 billion, YoY increase of 22% and QoQ increase of 1%. We incurred one-time acquisition related costs towards NRT portfolio. Excluding the same, SG&A spend was at 28% of sales. H1FY25 at ₹45.7 billion, YoY increase of 25%. The increase is largely on account of higher investments in sales & marketing activities to strengthen our existing brands, new business initiatives, including scaling up ‘Over-the-Counter’ (OTC) and consumer health businesses, as well as higher personnel and freight expenses.

Research & Development (R&D) Expenses

• Q2FY25 at ₹7.3 billion. As % to Revenues – Q2FY25: 9.1% | Q2FY24: 7.9% | Q1FY25: 8.1%. H1FY25 at ₹13.5 billion. As % to Revenues – H1FY25: 8.6% | H1FY24: 7.7%. R&D investments is related to our ongoing development efforts across generics, biosimilars, as well as our novel oncology assets.

Other Operating Income

• Q2FY25 at ₹1.0 billion as compared to ₹ 1.8 billion in Q2FY24. H1FY25 at ₹1.5 billion as compared to ₹ 2.6 billion in H1FY24.

Net Finance Income

• Q2FY25 at ₹1.6 billion compared to ₹1.2 billion in Q2FY24. H1FY25 at ₹2.4 billion as compared to ₹2.0 billion in H1FY24.

Profit before Tax

• Q2FY25 at ₹19.2 billion, flat YoY and a QoQ growth of 2%. As % to Revenues – Q2FY25: 23.9% | Q2FY24: 27.8% | Q1FY25: 24.5%. Excluding the impact of aforesaid mentioned one-time acquisition related cost and impairment charge on non-current assets; underlying profit before tax stood at 25.7% of revenues. H1FY25 at ₹38.0 billion, a YoY increase of 1%. As % to Revenues – H1FY25: 24.2% | H1FY24: 27.6%.

Income Tax

• Q2FY25 at ₹5.8 billion. As % to PBT – Q2FY25: 30% | Q2FY24: 22.7% | Q1FY25: 26%. The higher tax for the quarter is on account of reversal of a Deferred Tax Asset of Rs. 0.48 billion, created in earlier period on land, pursuant to the amendment in the Finance Act 2024, resulting in withdrawal of indexation benefit. Excluding the impact of this one-time reversal, adjusted effective tax rate for the quarter on the underlying PBT is 25.9%. H1FY25: The ETR was 28.0% as compared to 23.3% in H1FY24.

Profit after Tax before Non-Controlling Interests

• Q2FY25 at ₹13.4 billion, a YoY decline of 9% and a QoQ decline of 4%. As % to Revenues – Q2FY25: 16.7% | Q2FY24: 21.5% | Q1FY25: 18.1%. Excluding the impact of one-time acquisition related cost, impairment charge on non-current assets, one-time tax expense, underlying profit after tax before non-controlling interests stood at 18.0% of revenues. H1FY25 at ₹27.3 billion, a YoY decline of 5%. As % to Revenues – H1FY25: 17.4% | H1FY24: 21.2%.

Non-Controlling Interests (NCI)

• Q2FY25 at ₹0.9 billion. This primarily includes the share in a one-time deferred tax asset recognized in the subsidiary books (Dr. Reddy’s and Nestlé Health Science Limited) on account of transfer of Dr. Reddy’s nutraceuticals business to the subsidiary and consequently allocated to NCI.

Profit attributable to Equity Holders of Parent Company

• Q2FY25 at ₹12.6 billion, a YoY decline of 15% and a QoQ decline of 10%. As % to Revenues – Q2FY25: 15.7% | Q2FY24: 21.5% | Q1FY25: 18.1%. Excluding the impact of one-time acquisition related cost, impairment charge on non-current assets, one-time tax expense, underlying profit after tax attributable to equity holders of parent company stood at 19% of revenues. H1FY25 at ₹26.5 billion, a YoY decline of 8%. As % to Revenues – H1FY25: 16.9% | H1FY24: 21.2%.

Diluted Earnings per Share (EPS)

• Q2FY25 is ₹15.04. H1FY25 is ₹31.73. The Earnings per share has been arrived at on the increased number of shares pursuant to the stock split of one fully paid-up equity share of Rupees five each into five fully paid-up equity share of Rupee one each.

Other Highlights:

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

• Q2FY25 at ₹22.8 billion, YoY growth of 5% and QoQ growth of 6%. As % to Revenues – Q2FY25: 28.4% | Q2FY24: 31.7% | Q1FY25: 28.2%. Excluding the impact of one-time acquisition related cost, EBITDA stood at 29.1% of sales.

• H1FY25 at ₹44.4 billion, a YoY growth of 3%. As % to Revenues – H1FY25: 28.3% | H1FY24: 31.7%.

Others:

• Operating Working Capital: As on 30th September 2024 at ₹120.7 billion.

• Capital Expenditure: Q2FY25 at ₹7.4 billion.

• Free Cash Flow: Q2FY25 at ₹2.0 billion.

• Net Cash Surplus: As on 30th September 2024 at ₹18.9 billion

• Debt to Equity: As on 30th September 2024 is (0.06)

• ROCE: Q2FY25 at 28.5% (Annualized)

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 Sep 2024

(₹)

Inventories

72,039

Trade Receivables

84,398

Less:

 

Trade Payables

35,776

Operating Working Capital

120,661

 

Free Cash Flow

Particulars

Three months ended 30th Sep 2024

(₹)

Net cash generated from operating activities

16,538

Less:

 

Taxes

(7,223)

Investments in Property, Plant & Equipment, and Intangibles

(7,279)

Free Cash Flow before Acquisitions

2,036

Less:

 

Acquisitions related Pay-out

(51,442)

Free Cash Flow

(49,406)

 

Net Cash Surplus and Debt to Equity

Particulars

As on 30th Sep 2024

(₹)

Cash and Cash Equivalents

11,330

Investments

52,944

Short-term Borrowings

(40,021)

Long-term Borrowings, Non-Current

(7,361)

Less:

 

Restricted Cash Balance – Unclaimed Dividend and others

177

Lease liabilities (included in Long-term Borrowings, Non-Current)

(3,561)

Equity Investments (Included in Investments)

1,388

Net Cash Surplus

18,888

Equity

309,283

Net Debt/Equity

(0.06)

 

Computation of Return on Capital Employed

Particulars

As on 30th Sep 2024

(₹)

Profit before Tax

19,167

Less:

 

Interest and Investment Income (Excluding forex gain/loss)

1,262

Earnings Before Interest and taxes [A]

17,905

 

 

Average Capital Employed [B]

250,862

 

 

Annualized Return on Capital Employed (A/B) (Ratio)

28.5%

 

Computation of Capital Employed:

Particulars

As on

Sep 30, 2024

Mar 31, 2024

Property Plant and Equipment

86,693

76,886

Intangibles

92,119

36,951

Goodwill

11,773

4,253

Investment in Equity Accounted Associates

4,779

4,196

Other Current Assets

28,217

22,560

Other Investments

1,200

1,059

Other Non-Current Assets

1,510

1,632

Inventories

72,039

63,552

Trade Receivables

84,398

80,298

Derivative Financial Instruments

63

(299)

Less:

 

 

Other Liabilities

47,840

46,866

Provisions

5,260

5,444

Trade payables

35,776

30,919

Operating Capital Employed

293,865

207,859

Average Capital Employed

250,862

Computation of EBITDA

Refer page no. 3 & 4.

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: November 5, 2024

Time: 19:30 pm IST | 09:00 am ET

Conference Joining Information

Option 1: Pre-register with the below link and join without waiting for the operator

https://services.choruscall.in/DiamondPassRegistration/register?confirmationNumber=2636091&linkSecurityString=1174e664fe

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 November 11th, 2024. For play back dial in phone No: +91 22 7194 5757, and Playback Code is 03706.

Transcript: 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/20241105872905/en/

INVESTOR RELATIONS RICHA PERIWAL richaperiwal@drreddys.com

AISHWARYA SITHARAM aishwaryasitharam@drreddys.com

MEDIA RELATIONS USHA IYER ushaiyer@drreddys.com