[July 30, 2014] |
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Dr. Reddy's Q1 FY15 Financial Results
HYDERABAD, India --(Business Wire)--
Dr. Reddy's Laboratories Ltd. (NYSE: RDY) today announced its unaudited
consolidated financial results for the quarter ended June 30, 2014 under
International Financial Reporting Standards (IFRS).
Key Highlights (Q1 FY15)
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Consolidated revenues at Rs.35.2 billion, year-on-year growth of
24%.
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Revenues from the Global Generics (GG) segment at Rs.29.0 billion,
year-on-year growth of 32%.
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Revenues from the Pharmaceutical Services and Active Ingredients
(PSAI) segment at Rs.5.5 billion, year-on-year decline of 6%.
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Gross Profit Margin at 59.3% versus 52.8% as in Q1 FY 14.
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Research & Development (R&D) expenses at Rs.3.9 billion,
year-on-year increase of 59%. Expenses at 11.0% of revenues versus
8.5% of revenues as in Q1 FY14.
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Selling, general & administrative (SG&A) expenses at Rs.10.7
billion, year-on-year increase of 21%. Expenses at 30.4% of revenues
versus 30.9% of revenues as in Q1 FY14.
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EBITDA at Rs.8.9 billion, 25% of revenues; year-on-year growth of
56%.
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Profit after tax at Rs.5.5 billion, 16% of revenues; year-on-year
growth of 52%.
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During the quarter the company launched 25 new generic products,
filed 27 new product applications and 20 DMFs globally.
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All amounts in millions, except EPS
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All US dollar amounts based on convenience translation rate of
I USD = Rs.60.06
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Dr. Reddy's Laboratories Limited and Subsidiaries
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Unaudited Consolidated Income Statement
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Particulars
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Q1 FY15
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Q1 FY14
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Growth %
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($)
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(Rs.)
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%
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($)
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(Rs.)
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%
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Revenues
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586
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35,175
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100
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474
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28,449
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100
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24
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Cost of revenues
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239
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14,331
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40.7
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224
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13,430
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47.2
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7
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Gross profit
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347
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20,844
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59.3
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250
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15,019
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52.8
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39
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Operating Expenses
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Selling, general & administrative expenses
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178
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10,679
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30.4
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146
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8,794
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30.9
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21
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Research and development expenses
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65
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3,875
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11.0
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40
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2,430
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8.5
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59
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Other (income) / expense, net
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(3)
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(185)
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(0.5)
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(6)
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(376)
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(1.3)
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(51)
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Results from operating activities
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108
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6,475
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18.4
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69
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4,171
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14.7
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55
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Net finance income / (expense)
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8
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481
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1.4
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(1)
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(70)
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(0.2)
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Share of profit of equity accounted investees, net of tax
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1
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53
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0.2
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1
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36
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0.1
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50
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Profit before tax
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117
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7,009
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19.9
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69
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4,137
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14.5
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69
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Tax expense
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25
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1,505
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4.3
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9
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528
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1.9
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185
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Profit for the period
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92
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5,504
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15.6
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60
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3,609
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12.7
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52
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Diluted Earnings Per Share (EPS)
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0.54
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32.24
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0.35
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21.17
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52
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EBITDA Computation
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Particulars
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Q1 FY15
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Q1 FY14
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($)
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(Rs.)
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($)
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(Rs.)
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Profit before tax
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117
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7,009
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69
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4,137
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Interest income
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(0)
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(5)
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(1)
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(61)
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Depreciation
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22
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1,317
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19
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1,117
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Amortization
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9
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555
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8
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496
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EBITDA
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148
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8,876
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95
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5,689
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EBITDA (% to sales)
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25
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20
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All amounts in millions, except EPS
All US dollar amounts based on convenience translation rate of 1 USD
= Rs.60.06
Segmental Analysis
Global Generics
Revenues at Rs.29.0 billion, year-on-year growth of 32%, primarily
driven by North America, select Emerging Market territories and India.
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Revenues from North America at Rs.16.5 billion, year-on-year
growth of 51%.
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Sustained performance from limited competition launches namely
decitabine, azacitadine, zoledronic acid injection 5mg/100mL,
donepezil 23mg and divalproex ER.
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Progress on market share expansion of key base molecules namely
metoprolol succinate and ziprasidone.
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4 new products were launched during the quarter.
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9 product filings in the US in the Q1 FY15. Cumulatively, 70 ANDAs
are pending for approval with the USFDA of which 42 are Para IVs,
and we believe 8 to have 'First To File' status.
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Revenues from Emerging Markets at Rs.7.1 billion, year-on-year
growth of 19%.
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Revenues from Russia at Rs.4.2 billion, year-on-year growth
of 18% in local currency, largely driven by higher volumes in the
OTC segment and certain key products in prescription segment.
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Emerging Markets (Ex-Russia) at Rs.2.9 billion recorded
year-on-year growth of 25% primarily driven by Venezuela Market.
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Revenues from India at Rs.4.0 billion, year-on-year growth of
15%.
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Growth is driven by healthy volume expansion in our focus brands,
some of which are also listed under the NLEM portfolio.
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IMS June '14, Dr Reddy's MAT Gr% 9.6% versus IPM MAT Gr% of 9.4%. (Source (News - Alert):
IMS).
Pharmaceutical Services and Active Ingredients
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Revenues from PSAI at Rs.5.5 billion, year-on-year decline of 6%.
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During the quarter 20 DMFs were filed globally, of which 5 were filed
in the US. The cumulative number of DMF filings as of June 30, 2014 is
678.
Income Statement Highlights:
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Gross profit margin at 59.3% and improved by approximately 650 basis
points over Q1 FY14. Gross profit margin for GG and PSAI business
segments are at 66.5% and 22.3% respectively.
GG gross profit
margin improved primarily on account of better product mix.
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SG&A expenses at Rs.10.7 billion increased by 21% on a year-on-year
basis. However there is a 55 basis points improvement wrt revenues.
Increase in absolute value is largely due to depreciation of the rupee
against multiple currencies, annual increment, additional manpower
deployment in the past 12 months and other sales and marketing spend
for events specific to this quarter.
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R&D expenses at Rs.3.9 billion, year-on-year growth of 59%. 11.0% of
revenues in Q1 FY15 as compared to 8.5% of revenues in Q1 FY14. The
increase is in line with our planned scale-up in development
activities.
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Net Finance income of Rs.481 million compared to Net Finance expense
of Rs.70 million in Q1 FY14. The change is on account of :
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Net incremental forex benefit of Rs.606 million.
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Net Incremental interest expense of Rs.56 million.
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EBITDA at Rs.8.9 billion, year-on-year growth of 56%; 25% of revenues.
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Profit after Tax at Rs.5.5 billion, year-on-year growth of 52%; 16% of
revenues.
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Diluted earnings per share in Q1 FY 15 at Rs.32.24.
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Capital expenditure for Q1 FY15 is Rs.2.2 billion.
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Appendix 1: Key Balance Sheet Items
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Particulars
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As on 30th June 14
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As on 31st March 14
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($)
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(Rs.)
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($)
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(Rs.)
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Cash and cash equivalents and Other current Investments
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549
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32,950
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558
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33,534
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Trade receivables
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601
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36,110
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550
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33,037
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Inventories
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422
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25,319
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399
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23,992
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Property, plant and equipment
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755
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45,350
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740
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44,424
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Goodwill and Other Intangible assets
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238
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14,277
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245
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14,697
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Loans and borrowings (current & non-current)
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696
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41,818
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745
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44,741
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Trade payables
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177
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10,640
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175
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10,503
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Equity
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1,611
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96,730
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1,512
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90,801
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Appendix 2: Revenue Mix by Segment
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Particulars
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Q1 FY15
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Q1 FY14
|
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Growth %
|
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($)
|
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(Rs.)
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%
|
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($)
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(Rs.)
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%
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Global Generics
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483
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29,003
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82
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365
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21,903
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77
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32
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North America
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16,468
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57
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10,871
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50
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51
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Europe
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1,459
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5
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1,573
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7
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(7)
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India
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3,999
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14
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3,493
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16
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14
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Russia & Other CIS
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4,861
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17
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4,489
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20
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8
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Rest of World
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2,215
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8
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1,477
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7
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50
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PSAI
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92
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5,538
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16
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98
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5,868
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21
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(6)
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North America
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547
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10
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1,093
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19
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(50)
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Europe
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2,681
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48
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2,093
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36
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28
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India
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775
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14
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791
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13
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(2)
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Rest of World
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1,534
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28
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1,891
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32
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(19)
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Proprietary Products & Others
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11
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634
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2
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11
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679
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2
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(6)
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Total
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586
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35,175
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100
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474
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28,449
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100
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24
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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.
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