Dr. Reddy's Laboratories Ltd. (BSE: 500124 | NSE: DRREDDY | NYSE: RDY) today announced its consolidated financial results for the fourth quarter and full year ended March 31, 2019 under International Financial Reporting Standards (IFRS).
Q4 Performance Summary |
FY19 Performance Summary |
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Rs.4,017 Cr |
Rs.15,385 Cr |
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Revenue |
Revenue |
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[Up: 14% YoY] | [Up: 8% YoY] | |||
52.4% |
54.2% |
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Gross Margin |
Gross Margin |
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[Q4 FY18: 53.5%] |
[FY18: 53.7%] | |||
Rs.1,238 Cr |
Rs.4,889 Cr |
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SGNA expenses |
SGNA expenses |
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[Up: 3% YoY] | [Up: 4% YoY] | |||
Rs.366 Cr |
Rs.1,561 Cr |
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R&D expenses |
R&D expenses |
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[9.1% of Revenues] | [10.1% of Revenues] | |||
Rs.585 Cr |
Rs.2,244 Cr |
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Profit before Tax |
Profit before Tax |
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[14.6% of Revenues] | [14.6% of Revenues] | |||
Rs.434 Cr |
Rs.1,880 Cr |
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Profit after Tax |
Profit after Tax |
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[10.8% of Revenues] | [12.2% of Revenues] | |||
Commenting on the results, CEO and Co-chairman, G.V. Prasad said "It has been a good year with a significant turnaround in the financial performance and steady progress on the quality front. Looking ahead, we will focus on profitable growth, continue the emphasis on operational excellence and drive innovation to deliver value to patients and healthcare systems worldwide."
All amounts in millions, except EPS
All US dollar amounts
based on convenience translation rate of I USD = Rs. 69.16
Dr. Reddy's Laboratories Limited and Subsidiaries | ||||||||||||||||
Consolidated Income Statement | ||||||||||||||||
Particulars | Q4 FY19 | Q4 FY18 |
YoY Gr % |
Q3 FY19 |
QoQ Gr% |
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($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | |||||||||||
Revenues | 581 | 40,166 | 511 | 35,349 | 14 | 557 | 38,500 | 4 | ||||||||
Cost of Revenues | 276 | 19,113 | 238 | 16,454 | 16 | 257 | 17,748 | 8 | ||||||||
Gross Profit | 304 | 21,053 | 273 | 18,895 | 11 | 300 | 20,752 | 1 | ||||||||
Operating Expenses | ||||||||||||||||
Selling, General & Administrative expenses | 179 | 12,376 | 174 | 12,067 | 3 | 174 | 12,036 | 3 | ||||||||
Research and Development expenses | 53 | 3,662 | 63 | 4,348 | (16) | 53 | 3,668 | (0) | ||||||||
Other operating (income) | (5) | (330) | (2) | (167) | 97 | (10) | (681) | (51) | ||||||||
Results from operating activities |
77 |
5,345 | 38 | 2,647 | 102 | 83 | 5,729 | (7) | ||||||||
Net finance (income) / expense | (5) | (349) | (15) | (1,032) | (66) | 0 | 13 | - | ||||||||
Share of (profit) / loss of equity accounted investees | (2) | (157) | (1) | (69) | 127 | (1) | (89) | 77 | ||||||||
Profit before income tax | 85 | 5,851 | 54 | 3,748 | 56 | 84 | 5,805 | 1 | ||||||||
Income tax expense | 22 | 1,507 | 11 | 726 | 107 | 14 | 953 | 58 | ||||||||
Profit for the period | 63 | 4,344 | 44 | 3,022 | 44 | 70 | 4,852 | (10) | ||||||||
- | - | - | ||||||||||||||
Diluted Earnings Per Share (EPS) | 0.38 | 26.16 | 0.26 | 18.18 | 44 | 0.42 | 29.21 | (10) |
As % to Revenues | Q4 FY19 | Q4 FY18 | Q3 FY19 | ||||
Gross Profit | 52.4 | 53.5 | 53.9 | ||||
SG&A | 30.8 | 34.1 | 31.3 | ||||
R&D | 9.1 | 12.3 | 9.5 | ||||
PBT | 14.6 | 10.6 | 15.1 | ||||
PAT | 10.8 | 8.5 | 12.6 | ||||
EBITDA Computation |
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Particulars | Q4 FY19 | Q4 FY18 | Q3 FY19 | ||||||||
($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | ||||||
Profit before Income Tax | 85 | 5,851 | 54 | 3,748 | 84 | 5,805 | |||||
Interest (income) net* | (3) | (215) | (14) | (1,001) | (4) | (260) | |||||
Depreciation # | 31 | 2,136 | 31 | 2,109 | 30 | 2,073 | |||||
Amortization # | 15 | 1,047 | 13 | 921 | 15 | 1,035 | |||||
EBITDA | 128 | 8,819 | 84 | 5,777 | 125 | 8,653 | |||||
EBITDA (% to revenues) | 22.0 | 16.3 | 22.5 | ||||||||
* - Includes income from Investments # includes impairment charge |
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Revenue Mix by Segment |
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Particulars | Q4 FY19 | Q4 FY18 |
YoY Growth % |
Q3 FY19 |
QoQ Growth % |
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(Rs.) | (Rs.) | (Rs.) | ||||||||
Global Generics | 30,384 | 27,836 | 9 | 31,347 | (3) | |||||
North America | 14,957 | 14,487 | 3 | 14,832 | 1 | |||||
Europe* | 1,912 | 1,711 | 12 | 2,030 | (6) | |||||
India | 6,505 | 6,138 | 6 | 6,741 | (4) | |||||
Emerging Markets # |
7,010 | 5,500 | 27 | 7,744 | (9) | |||||
Pharmaceutical Services and Active Ingredients (PSAI) |
6,765 | 6,251 | 8 | 5,937 | 14 | |||||
Proprietary Products & Others | 3,017 | 1,262 | 139 | 1,216 | 148 | |||||
Total | 40,166 | 35,349 | 14 | 38,500 | 4 | |||||
* Europe primarily includes Germany and UK |
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# Emerging Markets refers to Russia, other CIS countries, Romania and Rest of the World markets |
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Dr. Reddy's Laboratories Limited and Subsidiaries | ||||||||||||||
Consolidated Income Statement | ||||||||||||||
Particulars | FY 19 | FY 18 | Growth % | |||||||||||
($) | (Rs.) | % |
($) |
(Rs.) | % | |||||||||
Revenues | 2,225 | 1,53,851 | 100.0 | 2,054 | 1,42,028 | 100.0 | 8 | |||||||
Cost of Revenues | 1,018 | 70,421 | 45.8 | 950 | 65,724 | 46.3 | 7 | |||||||
Gross Profit | 1,206 | 83,430 | 54.2 | 1,103 | 76,304 | 53.7 | 9 | |||||||
Operating Expenses | ||||||||||||||
Selling, General & Administrative expenses | 707 | 48,890 | 31.8 | 678 | 46,910 | 33.0 | 4 | |||||||
Research and Development expenses | 226 | 15,607 | 10.1 | 264 | 18,265 | 12.9 | (15) | |||||||
Other operating (income) | (28) | (1,955) | (1.3) | (11) | (788) | (0.6) | 148 | |||||||
Results from operating activities | 302 | 20,888 | 13.6 | 172 | 11,917 | 8.4 | 75 | |||||||
Finance (income), net | (16) | (1,117) | (0.7) | (30) | (2,080) | (1.5) | (46) | |||||||
Share of (profit) of equity accounted investees, net of income tax | (6) | (438) | (0.3) | (5) | (344) | (0.2) | 27 | |||||||
Profit before income tax | 325 | 22,443 | 14.6 | 207 | 14,341 | 10.1 | 56 | |||||||
Income tax expense | 53 | 3,648 | 2.4 | 66 | 4,535 | 3.2 | (20) | |||||||
Profit for the period | 272 | 18,795 | 12.2 | 142 | 9,806 | 6.9 | 92 | |||||||
Diluted Earnings Per Share (EPS) | 1.64 | 113.09 | 0.85 | 59.00 | 92 | |||||||||
EBITDA Computation |
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Particulars | FY 19 | FY 18 | ||||||
($) | (Rs.) | ($) | (Rs.) | |||||
Profit before income tax | 325 | 22,443 | 207 | 14,341 | ||||
Interest (income) / expense net* | (9) | (654) | (29) | (2,022) | ||||
Depreciation # | 122 | 8,456 | 120 | 8,285 | ||||
Amortization # | 57 | 3,944 | 50 | 3,477 | ||||
EBITDA | 494 | 34,189 | 348 | 24,081 | ||||
EBITDA (% to revenues) | 22.2 | 17.0 | ||||||
* - Includes income from Investments # includes impairment charge |
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Key Balance Sheet Items |
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Particulars | As on 31st Mar 2019 | As on 31st Dec 2018 | As on 31st Mar 2018 | ||||||
($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | ||||
Cash & cash equivalents and investments | 370 | 25,570 | 370 | 25,593 | 340 | 23,517 | |||
Trade receivables (current & non-current) | 578 | 39,982 | 539 | 37,302 | 590 | 40,786 | |||
Inventories | 486 | 33,579 | 490 | 33,911 | 421 | 29,089 | |||
Property, plant and equipment | 782 | 54,088 | 800 | 55,344 | 837 | 57,869 | |||
Goodwill and Other Intangible assets | 698 | 48,269 | 711 | 49,205 | 703 | 48,610 | |||
Loans and borrowings (current & non-current) | 555 | 38,381 | 634 | 43,836 | 733 | 50,714 | |||
Trade payables | 210 | 14,553 | 230 | 15,939 | 232 | 16,052 | |||
Equity | 2,027 | 1,40,197 | 1,962 | 1,35,708 | 1,829 | 1,26,460 | |||
Revenue Mix by Segment [Year on year] |
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Particulars | FY 19 |
FY 18 |
Growth % | |||||||||||
($) | (Rs.) | % | ($) | (Rs.) | % | |||||||||
Global Generics | 1,777 | 1,22,903 | 79.9 | 1,649 | 1,14,014 | 80.3 | 8 | |||||||
North America | 59,957 | 59,822 | 0.2 | |||||||||||
Europe* | 7,873 | 8,217 | (4) | |||||||||||
India | 26,179 | 23,322 | 12 | |||||||||||
Emerging Markets# | 28,894 | 22,653 | 28 | |||||||||||
Pharmaceutical Services and Active Ingredients (PSAI) | 349 | 24,140 | 15.7 | 318 | 21,992 | 15.5 | 10 | |||||||
Proprietary Products & Others | 98 | 6,808 | 4.4 | 87 | 6,022 | 4.2 | 13 | |||||||
Total | 2,225 | 1,53,851 | 100 | 2,054 | 1,42,028 | 100 | 8 | |||||||
* Europe primarily includes Germany and UK |
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# Emerging Markets refers to Russia, other CIS countries, Romania and Rest of the World markets |
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Segmental Analysis [Full Year and Q4 FY 19]
Global Generics (GG)
Revenues from GG segment at Rs.123 billion. Year-on-year (YoY) growth of 8%
Growth on account of higher contribution from Emerging Markets and India; primarily due to volume gains, new launches and scale up of new markets.
As of 31st March 2019, cumulatively 110 generic filings are pending for approval with the USFDA (107 ANDAs and 3 NDAs under 505(b)(2) route). Of these 107 ANDAs, 60 are Para IVs out of which we believe 34 have ?First to File' status.
Pharmaceutical Services and Active Ingredients (PSAI)
Proprietary Products (PP)
Income Statement Highlights [Full Year and Q4 FY 19]
The Board has recommended payment of a dividend of Rs.20 per equity share of face value Rs.5/- each (400% of face value) for the year ended March 31, 2019 subject to approval of members.
Other Matters
As a subsequent event, the company has entered into a settlement agreement with Celgene, pursuant to which the Company received a one-time payment of USD 50 million in settlement of any claim the Company or its affiliates may have had for damages under section 8 of the Canadian Patented Medicines (Notice of Compliance) Regulations in regard to the Company's ANDS for a generic version of REVLIMID brand capsules, (Lenalidomide) pending before Health Canada.
Earnings Call Details (06:00 pm IST, 08:30 am EDT, May 17, 2019)
The Company will host an earnings call to discuss the performance and answer any questions from participants. | |||||||||||
Audio conference Participants can dial-in on the numbers below: | |||||||||||
Universal Access Number: |
+91 22 6280 1219 |
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Secondary number: |
+91 22 7115 8120 |
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Local Access number: |
+91 70456 71221 |
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(Available all over India) |
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International Toll Free Number |
USA |
1 866 746 2133 |
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UK |
0 808 101 1573 |
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Singapore |
800 101 2045 |
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Hong Kong |
800 964 448 |
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Playback of call: |
+91 22 7194 5757, +91 22 6663 5757 |
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Conference ID: |
04147 |
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Transcript of the event will be available at www.drreddys.com. Playback will be available for a few days. |
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About Dr. Reddy's: Dr. Reddy's Laboratories Ltd. (BSE: 500124, NSE: DRREDDY, NYSE: RDY) is an integrated pharmaceutical company, committed to providing affordable and innovative medicines for healthier lives. Through its three businesses - Pharmaceutical Services & 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. Our major therapeutic areas of focus are gastro-intestinal, cardiovascular, diabetology, oncology, pain management and dermatology. Dr. Reddy's operates in markets across the globe. Our major markets include ? USA, India, Russia and other CIS countries. 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 reorganisation , including related integration issues.
The company assumes no obligation to update any information contained herein.
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