HYDERABAD, India–(BUSINESS WIRE)–$RDY #DRREDDY–Dr. Reddy’s Laboratories Ltd. (BSE: 500124 | NSE: DRREDDY | NYSE: RDY | NSEIFSC: DRREDDY) today announced its consolidated financial results for the fourth quarter and full year ended March 31, 2024. The information mentioned in this release is based on consolidated financial statements under International Financial Reporting Standards (IFRS).
Q4FY24 | FY24 | |||
Revenues | ₹ 70,830 Mn [Up: 12% YoY; Down: 2% QoQ]^ | ₹ 279,164 Mn [Up: 14% YoY]^ | ||
Gross Margin | 58.6% [Q4FY23: 57.2%; Q3FY24: 58.5%] | 58.6% [FY23: 56.7%] | ||
SG&A Expenses | ₹ 20,476 Mn [Up: 14% YoY; 1% QoQ] | ₹ 77,201 Mn [Up: 13% YoY] | ||
R&D Expenses | ₹ 6,877 Mn [9.7% of Revenues] | ₹ 22,873 Mn [8.2% of Revenues] | ||
EBITDA | ₹ 18,720 Mn [26.4% of Revenues] | ₹ 83,013 Mn [29.7% of Revenues] | ||
Profit before Tax | ₹ 16,016 Mn [Up: 21% YoY; Down: 12% QoQ] | ₹ 71,870 Mn [Up: 19% YoY] | ||
Profit after Tax | ₹ 13,070 Mn [Up: 36% YoY; Down: 5% QoQ] | ₹ 55,684 Mn [Up: 24% YoY] | ||
^Excluding revenues from brands divested during the corresponding previous periods, Q4FY24 YoY growth is 17% and FY24 growth is 16%. |
Commenting on the results, Co-Chairman & MD, G V Prasad said: “Our growth and profitability in FY2024 has been driven by our performance in the US. We have also made significant progress on future growth drivers through licensing, collaboration and pipeline building. We will continue to strengthen our core businesses through superior execution as we invest and build the future growth drivers.”
All amounts in millions, except EPS | All US dollar amounts based on convenience translation rate of 1 USD = ₹ 83.34 |
Dr. Reddy’s Laboratories Limited & Subsidiaries | |||||
Revenue Mix by Segment for the quarter | |||||
Particulars | Q4FY24 | Q4FY23 | YoY Gr % | Q3FY24 | QoQ Gr% |
(₹) | (₹) | (₹) | |||
Global Generics | 61,191 | 54,257 | 13 | 63,095 | (3) |
North America | 32,626 | 25,321 | 29 | 33,492 | (3) |
Europe | 5,208 | 4,960 | 5 | 4,970 | 5 |
India | 11,265 | 12,834 | (12)^ | 11,800 | (5) |
Emerging Markets | 12,091 | 11,142 | 9 | 12,833 | (6) |
Pharmaceutical Services and Active Ingredients (PSAI) | 8,219 | 7,787 | 6 | 7,839 | 5 |
Others | 1,420 | 924 | 54 | 1,214 | 17 |
Total | 70,830 | 62,968 | 12 | 72,148 | (2) |
^Excluding revenues from brands divested during the corresponding previous periods, Q4FY24 YoY India growth is 17%. |
Revenue Mix by Segment for the year | |||
Particulars | FY24 | FY23 | YoY Gr% |
(₹) | (₹) | ||
Global Generics | 245,453 | 213,768 | 15 |
North America | 129,895 | 101,704 | 28 |
Europe | 20,511 | 17,603 | 17 |
India | 46,407 | 48,932 | (5)^ |
Emerging Markets | 48,640 | 45,529 | 7 |
PSAI | 29,801 | 29,069 | 3 |
Others | 3,910 | 3,042 | 29 |
Total | 279,164 | 245,879 | 14^ |
^ Excluding revenues from brands divested during the corresponding previous periods, India growth is 5.5% and overall 16%. |
Consolidated Income Statement for the quarter | ||||||||
Particulars | Q4FY24 | Q4FY23 | YoY Gr % | Q3FY24 | QoQ Gr% | |||
($) | (₹) | ($) | (₹) | ($) | (₹) | |||
Revenues | 850 | 70,830 | 756 | 62,968 | 12 | 866 | 72,148 | (2) |
Cost of Revenues | 352 | 29,347 | 324 | 26,971 | 9 | 359 | 29,945 | (2) |
Gross Profit | 498 | 41,483 | 432 | 35,997 | 15 | 506 | 42,203 | (2) |
% of Revenues |
| 58.6% |
| 57.2% |
|
| 58.5% |
|
Operating Expenses |
|
|
|
|
|
|
|
|
Selling, General & Administrative Expenses | 246 | 20,476 | 216 | 17,992 | 14 | 243 | 20,228 | 1 |
% of Revenues |
| 28.9% |
| 28.6% |
|
| 28.0% |
|
Research & Development Expenses | 83 | 6,877 | 64 | 5,366 | 28 | 67 | 5,565 | 24 |
% of Revenues |
| 9.7% |
| 8.5% |
|
| 7.7% |
|
Impairment of Non-Current Assets, net | (2) | (173) | 6 | 540 | (132) | 1 | 110 | (257) |
Other Operating (Income)/Expense | (8) | (656) | (3) | (281) | 133 | (12) | (967) | (32) |
Results from Operating Activities | 179 | 14,959 | 149 | 12,380 | 21 | 207 | 17,267 | (13) |
Finance (Income)/Expense, net | (12) | (1022) | (10) | (799) | 28 | (12) | (963) | 6 |
Share of Profit of Equity Accounted Investees, net of tax | (0) | (35) | (1) | (76) | (54) | (0) | (27) | 30 |
Profit before Income Tax | 192 | 16,016 | 159 | 13,255 | 21 | 219 | 18,257 | (12) |
% of Revenues |
| 22.6% |
| 21.1% |
|
| 25.3% |
|
Income Tax Expense | 35 | 2,946 | 44 | 3,663 | (20) | 54 | 4,468 | (34) |
Profit for the Period | 157 | 13,070 | 115 | 9,592 | 36 | 165 | 13,789 | (5) |
% of Revenues |
| 18.5% |
| 15.2% |
|
| 19.1% |
|
Diluted Earnings per Share (EPS) | 0.94 | 78.35 | 0.69 | 57.62 | 36 | 0.99 | 82.67 | (5) |
EBITDA Computation for the quarter | *Includes income from Investment | |||||
Particulars | Q4FY24 | Q4FY23 | Q3FY24 | |||
($) | (₹) | ($) | (₹) | ($) | (₹) | |
Profit before Income Tax | 192 | 16,016 | 159 | 13,255 | 219 | 18,257 |
Interest (Income) / Expense, net* | (10) | (835) | (8) | (673) | (12) | (1,030) |
Depreciation | 29 | 2,421 | 27 | 2,213 | 29 | 2,437 |
Amortization | 15 | 1,291 | 12 | 977 | 16 | 1,333 |
Impairment | (2) | (173) | 6 | 539 | 1 | 110 |
EBITDA | 225 | 18,720 | 196 | 16,311 | 253 | 21,107 |
% of Revenues |
| 26.4% |
| 25.9% |
| 29.3% |
Consolidated Income Statement for the year | |||||
Particulars | FY24 | FY23 | YoY Gr % | ||
($) | (₹) | ($) | (₹) | ||
Revenues | 3,350 | 279,164 | 2,950 | 245,879 | 14 |
Cost of Revenues | 1,387 | 115,557 | 1,278 | 106,536 | 8 |
Gross Profit | 1,963 | 163,607 | 1,672 | 139,343 | 17 |
% of Revenues |
| 58.6% |
| 56.7% |
|
Operating Expenses |
|
|
|
|
|
Selling, General & Administrative Expenses | 926 | 77,201 | 816 | 68,026 | 13 |
% of Revenues |
| 27.7% |
| 27.7% |
|
Research & Development Expenses | 274 | 22,873 | 233 | 19,381 | 18 |
% of Revenues |
| 8.2% |
| 7.9% |
|
Impairment of Non-Current Assets, net | 0 | 3 | 8 | 699 | (100) |
Other Operating (Income)/Expense | (50) | (4,199) | (71) | (5,907) | (29) |
Results from Operating Activities | 813 | 67,729 | 686 | 57,144 | 19 |
Finance (Income)/Expense, net | (48) | (3,994) | (34) | (2,853) | 40 |
Share of Profit of Equity Accounted Investees, net of tax | (2) | (147) | (4) | (370) | (60) |
Profit before Income Tax | 862 | 71,870 | 724 | 60,367 | 19 |
% of Revenues |
| 25.7% |
| 24.6% |
|
Income Tax Expense | 194 | 16,186 | 184 | 15,300 | 6 |
Profit for the Period | 668 | 55,684 | 541 | 45,067 | 24 |
% of Revenues |
| 19.9% |
| 18.3% |
|
Diluted Earnings per Share (EPS) | 4.01 | 334.02 | 3.25 | 270.85 | 23 |
EBITDA Computation for the year | *Includes income from Investment | |||
Particulars | FY24 | FY23 | ||
($) | (₹) | ($) | (₹) | |
Profit before Income Tax | 862 | 71,870 | 724 | 60,367 |
Interest (Income) / Expense, net* | (45) | (3,716) | (7) | (621) |
Depreciation | 115 | 9,576 | 103 | 8,614 |
Amortization | 63 | 5,280 | 48 | 4,022 |
Impairment | 0 | 3 | 8 | 698 |
EBITDA | 996 | 83,013 | 877 | 73,081 |
% of Revenues |
| 29.7% |
| 29.7% |
Key Balance Sheet Items | ||||||
Particulars | As on 31st Mar 2024 | As on 31st Dec 2023 | As on 31st Mar 2023 | |||
($) | (₹) | ($) | (₹) | ($) | (₹) | |
Cash and Cash Equivalents and Other Investments | 990 | 82,529 | 920 | 76,665 | 749 | 62,456 |
Trade Receivables | 963 | 80,298 | 948 | 79,028 | 870 | 72,486 |
Inventories | 763 | 63,552 | 729 | 60,796 | 584 | 48,670 |
Property, Plant, and Equipment | 923 | 76,886 | 871 | 72,554 | 797 | 66,462 |
Goodwill and Other Intangible Assets | 494 | 41,204 | 494 | 41,192 | 421 | 35,094 |
Loans and Borrowings (Current & Non-Current) | 240 | 20,020 | 238 | 19,851 | 162 | 13,472 |
Trade Payables | 371 | 30,919 | 381 | 31,716 | 317 | 26,444 |
Equity | 3,366 | 280,550 | 3,264 | 272,026 | 2,772 | 230,991 |
Key Business Highlights [for Q4FY24]
ESG & other Highlights [for Q4FY24]
Revenue Analysis
Global Generics (GG)
North America
Europe
India
Emerging Markets
Pharmaceutical Services and Active Ingredients (PSAI)
Income Statement Highlights:
Gross Margin
Selling, General & Administrative (SG&A) Expenses
Research & Development (R&D) Expenses
Other Operating Income
Net Finance Income
Profit before Tax
Profit after Tax
Diluted Earnings per Share (EPS)
Other Highlights:
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Others:
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 31st Mar 2024 |
(₹) | |
Inventories | 63,552 |
Trade Receivables | 80,298 |
Less: |
|
Trade Payables | 30,919 |
Operating Working Capital | 112,931 |
Free Cash Flow | ||
Particulars | Three months ended 31st Mar 2024 | Year ended 31st Mar 2024 |
(₹) | (₹) | |
Net cash generated from operating activities | 17,053 | 65,479 |
Less: |
|
|
Taxes | 5,534 | 20,047 |
Investments in Property, Plant & Equipment, and Intangibles | 6,230 | 18,709 |
Free Cash Flow before Acquisitions | 5,289 | 26,723 |
Less: |
|
|
Acquisitions related Pay-out | – | 7,640 |
Free Cash Flow | 5,289 | 19,083 |
Net Cash Surplus and Debt to Equity | |
Particulars | As on 31st Mar 2024 |
(₹) | |
Cash and Cash Equivalents | 7,107 |
Investments | 75,422 |
Short-term Borrowings | (12,723) |
Long-term Borrowings, Non-Current | (5,990) |
Less: |
|
Restricted Cash Balance – Unclaimed Dividend | 227 |
Lease liabilities (included in Long-term Borrowings, Non-Current) | (2,190) |
Equity Investments (Included in Investments) | 1,193 |
Net Cash Surplus | 64,586 |
Equity | 280,550 |
Net Debt/Equity | (0.23) |
Computation of Return on Capital Employed | |
Particulars | As on 31st Mar 2024 |
(₹) | |
Profit before Tax | 71,870 |
Less: |
|
Interest and Investment Income (Excluding forex gain/loss) | 3,716 |
Earnings Before Interest and taxes [A] | 68,154 |
|
|
Average Capital Employed [B] | 191,809 |
|
|
Return on Capital Employed (A/B) (Ratio) | 36% |
Computation of Capital Employed: | ||
Particulars | Year Ended | |
Mar 31, 2024 | Mar 31, 2023 | |
Property Plant and Equipment | 76,886 | 66,462 |
Intangibles | 36,951 | 30,849 |
Goodwill | 4,253 | 4,245 |
Investment in Equity Accounted Associates | 4,196 | 4,702 |
Other Current Assets | 22,560 | 20,069 |
Other Investments | 1,059 | 660 |
Other Non-Current Assets | 1,632 | 800 |
Inventories | 63,552 | 48,670 |
Trade Receivables | 80,298 | 72,485 |
Derivative Financial Instruments | (299) | 1,095 |
Less: |
|
|
Other Liabilities | 46,866 | 42,320 |
Provisions | 5,444 | 5,513 |
Trade payables | 30,919 | 26,444 |
Operating Capital Employed | 207,859 | 175,760 |
Average Capital Employed | 191,809 |
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: May 7, 2024
Time: 19:30 pm IST | 10:00 am ET
Conference Joining Information |
Option 1: Pre-register with the below link and join without waiting for the operator |
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 May 14th, 2024. For play back dial in phone No: +91 22 7194 5757, and Playback Code is 40871.
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.
Contacts
INVESTOR RELATIONS
RICHA PERIWAL
richaperiwal@drreddys.com
AISHWARYA SITHARAM
aishwaryasitharam@drreddys.com
MEDIA RELATIONS
USHA IYER
ushaiyer@drreddys.com
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