HYDERABAD, India–(BUSINESS WIRE)–$RDY #DrReddys–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, 2023. The information mentioned in this release is on the basis of consolidated financial statements under International Financial Reporting Standards (IFRS).
Q4 Performance Summary | FY23 Performance Summary | |
Rs. 6,297 Cr | Rs. 24,588 Cr | |
Revenue | Revenue | |
[Up: 16% YoY; Down 7% QoQ] | [Up: 15% YoY] | |
57.2% | 56.7% | |
Gross Margin | Gross Margin | |
[Q4 FY22: 52.9%; Q3 FY23: 59.2%] | [FY22: 53.1%] | |
Rs. 1,799 Cr | Rs. 6,803 Cr | |
SGNA expenses | SGNA expenses | |
[28.6% of Revenues] | [27.7% of Revenues] | |
Rs. 537 Cr | Rs. 1,938 Cr | |
R&D expenses | R&D expenses | |
[8.5% of Revenues] | [7.9% of Revenues] | |
Rs. 1,631 Cr | Rs. 7,308 Cr | |
EBITDA | EBITDA | |
[25.9% of Revenues; Up: 26% YoY; Down: 17% QoQ] | [29.7% of Revenues; Up: 42% YoY] | |
Rs. 1,326 Cr* | Rs. 6,037 Cr* | |
Profit before Tax | Profit before Tax | |
[Up: 434% YoY; Down: 19% QoQ] | [Up: 87% YoY] | |
Rs. 959 Cr | Rs. 4,507 Cr | |
Profit after Tax | Profit after Tax | |
[Up: 996% YoY; Down: 23% QoQ] | [Up: 91% YoY] | |
* Excluding impairments in current & previous periods, Q4 FY 23 PBT is Rs. 1,380 Cr (growth of 38% YoY) and FY 23 PBT is Rs. 6,107 Cr (growth of 53% YoY) |
Commenting on the results, Co-Chairman & MD, G V Prasad said: “FY 23 has been a year of record sales, profits and cash flow, driven by our performance in US Generics. We progressed well in our productivity and sustainability agenda. We will continue to deliver on our purpose, invest in growth drivers and promote a culture that is innovative and collaborative ensuring the future of our business.”
All amounts in millions, except EPS. All US dollar amounts based on convenience translation rate of 1 USD = Rs. 82.19
Dr. Reddy’s Laboratories Limited and Subsidiaries | ||||||||
Consolidated Income Statement | ||||||||
Particulars | Q4 FY23 | Q4 FY22 |
YoY | Q3 FY23 |
QoQ | |||
($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | |||
Revenues | 766 | 62,968 | 661 | 54,368 | 16 | 824 | 67,700 | (7) |
Cost of Revenues | 328 | 26,971 | 312 | 25,625 | 5 | 336 | 27,607 | (2) |
Gross Profit | 438 | 35,997 | 350 | 28,743 | 25 | 488 | 40,093 | (10) |
Operating Expenses |
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Selling, General & Administrative expenses | 219 | 17,992 | 191 | 15,674 | 15 | 219 | 17,981 | 0 |
Research and Development expenses | 65 | 5,366 | 53 | 4,326 | 24 | 59 | 4,821 | 11 |
Impairment of non-current assets | 7 | 540 | 91 | 7,515 | (93) | 2 | 134 | 303 |
Other operating (income)/expense | (3) | (281) | (4) | (291) | (3) | 9 | 732 | (138) |
Results from operating activities | 151 | 12,380 | 18 | 1,519 | 715 | 200 | 16,425 | (25) |
Net finance (income)/expense | (10) | (799) | (10) | (859) | (7) | 2 | 139 | (675) |
Share of profit of equity accounted investees | (1) | (76) | (1) | (105) | (28) | (1) | (60) | 27 |
Profit before income tax | 161 | 13,255 | 30 | 2,483 | 434 | 199 | 16,346 | (19) |
Income tax expense | 45 | 3,663 | 20 | 1,608 | 128 | 47 | 3,875 | (5) |
Profit for the period | 117 | 9,592 | 11 | 875 | 996 | 152 | 12,471 | (23) |
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Diluted Earnings Per Share (EPS) | 0.70 | 57.62 | 0.06 | 5.26 | 995 | 0.91 | 74.95 | (23) |
As % to revenues | Q4 FY23 | Q4 FY22 | Q3 FY23 | ||||
Gross Profit | 57.2 |
| 52.9 |
|
| 59.2 | |
SG&A | 28.6 |
| 28.8 |
|
| 26.6 | |
R&D | 8.5 |
| 8.0 |
|
| 7.1 | |
EBITDA | 25.9 |
| 23.9 |
|
| 29.0 | |
PBT | 21.1 |
| 4.6 |
|
| 24.1 | |
PAT | 15.2 |
| 1.6 |
|
| 18.4 |
EBITDA Computation | ||||||||
Particulars | Q4 FY23 | Q4 FY22 | Q3 FY23 | |||||
($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | |||
Profit before Income Tax | 161 | 13,255 |
| 30 | 2,483 |
| 199 | 16,346 |
Interest (income) / expense – Net* | (8) | (673) |
| 0 | 24 |
| (1) | (93) |
Depreciation | 27 | 2,213 |
| 25 | 2,039 |
| 27 | 2,245 |
Amortization | 12 | 977 |
| 11 | 920 |
| 12 | 1,026 |
Impairment | 7 | 540 |
| 91 | 7,515 |
| 2 | 134 |
EBITDA | 198 | 16,312 |
| 158 | 12,980 |
| 239 | 19,658 |
* Includes income from Investments |
All amounts in millions, except EPS. All US dollar amounts based on convenience translation rate of 1 USD = Rs. 82.19
Revenue Mix by Segment | |||||
Segment | Q4 FY23 | Q4 FY22 |
YoY | Q3 FY23 |
QoQ |
(Rs.) | (Rs.) | (Rs.) | |||
Global Generics | 54,257 | 46,118 | 18 | 59,241 | (8) |
North America | 25,321 | 19,971 | 27 | 30,567 | (17) |
Europe | 4,960 | 4,444 | 12 | 4,303 | 15 |
India | 12,834 | 9,689 | 32 | 11,274 | 14 |
Emerging Markets | 11,142 | 12,013 | (7) | 13,097 | (15) |
Pharmaceutical Services and Active Ingredients (PSAI) | 7,787 | 7,557 | 3 | 7,758 | 0 |
Others | 924 | 693 | 33 | 701 | 32 |
Total | 62,968 | 54,368 | 16 | 67,700 | (7) |
All amounts in millions, except EPS. All US dollar amounts based on convenience translation rate of 1 USD = Rs. 82.19
Dr. Reddy’s Laboratories Limited and Subsidiaries Consolidated Income Statement | |||||||
Particulars | FY23 | FY22 | Gr % | ||||
($) | (Rs.) | % | ($) | (Rs.) | % | ||
Revenue | 2,992 | 2,45,879 | 100.0 | 2,608 | 2,14,391 | 100.0 | 15 |
Cost of revenues | 1,296 | 1,06,536 | 43.3 | 1,223 | 1,00,551 | 46.9 | 6 |
Gross profit | 1,695 | 1,39,343 | 56.7 | 1,385 | 1,13,840 | 53.1 | 22 |
Operating Expenses |
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Selling, General & Administrative expenses | 828 | 68,026 | 27.7 | 755 | 62,081 | 29.0 | 10 |
Research and Development expenses | 236 | 19,381 | 7.9 | 213 | 17,482 | 8.2 | 11 |
Impairment of non-current assets | 9 | 699 | 0.3 | 92 | 7,562 | 3.5 | (91) |
Other operating income | (72) | (5,907) | (2.4) | (34) | (2,761) | (1.3) | 114 |
Results from operating activities | 695 | 57,144 | 23.2 | 359 | 29,476 | 13.7 | 94 |
Net finance income | (35) | (2,853) | (1.2) | (26) | (2,119) | (1.0) | 35 |
Share of profit of equity accounted investees | (5) | (370) | (0.2) | (9) | (703) | (0.3) | (47) |
Profit before income tax | 734 | 60,367 | 24.6 | 393 | 32,298 | 15.1 | 87 |
Income tax expense | 186 | 15,300 | 6.2 | 106 | 8,730 | 4.1 | 75 |
Profit for the period | 548 | 45,067 | 18.3 | 287 | 23,568 | 11.0 | 91 |
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Diluted EPS | 3.30 | 270.85 |
| 1.72 | 141.69 |
| 91 |
EBITDA Computation | ||||
Particulars | FY23 | FY22 | ||
($) | (Rs.) | ($) | (Rs.) | |
Profit before Income Tax | 734 | 60,367 | 393 | 32,298 |
Interest income – Net* | (8) | (621) | (3) | (284) |
Depreciation | 105 | 8,614 | 99 | 8,152 |
Amortization | 49 | 4,022 | 45 | 3,672 |
Impairment | 9 | 699 | 92 | 7,562 |
EBITDA | 889 | 73,081 | 625 | 51,400 |
* Includes income from Investments |
Key Balance Sheet Items | ||||||
Particulars | As on 31st Mar 2023 | As on 31st Dec 2022 | As on 31st Mar 2022 | |||
($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | |
Cash and cash equivalents and other investments | 760 | 62,456 | 610 | 50,164 | 584 | 48,033 |
Trade receivables (current & non-current) | 882 | 72,486 | 913 | 75,046 | 813 | 66,818 |
Inventories | 592 | 48,670 | 600 | 49,326 | 619 | 50,884 |
Property, plant and equipment | 809 | 66,462 | 791 | 64,996 | 756 | 62,169 |
Goodwill and Other Intangible assets | 427 | 35,094 | 431 | 35,401 | 385 | 31,664 |
Loans and borrowings (current & non-current) | 164 | 13,472 | 215 | 17,663 | 412 | 33,845 |
Trade payables | 322 | 26,444 | 317 | 26,023 | 311 | 25,572 |
Equity | 2,810 | 2,30,991 | 2,680 | 2,20,273 | 2,318 | 1,90,527 |
All amounts in millions, except EPS. All US dollar amounts based on convenience translation rate of 1 USD = Rs. 82.19
Revenue Mix by Segment [year on year] | |||||||
Segment | FY23 | FY22 | Gr % | ||||
($) | (Rs.) | % | ($) | (Rs.) | % | ||
Global Generics | 2,601 | 2,13,768 | 86.9% | 2,180 | 1,79,170 | 83.6% | 19% |
North America | 1,237 | 1,01,704 | 41.4% | 911 | 74,915 | 34.9% | 36% |
Europe | 214 | 17,603 | 7.2% | 202 | 16,631 | 7.8% | 6% |
India | 595 | 48,932 | 19.9% | 510 | 41,957 | 19.6% | 17% |
Emerging Markets | 554 | 45,529 | 18.5% | 556 | 45,667 | 21.3% | 0% |
Pharmaceutical Services and Active Ingredients (PSAI) | 354 | 29,069 | 11.8% | 374 | 30,740 | 14.3% | -5% |
Others | 37 | 3,042 | 1.2% | 55 | 4,481 | 2.1% | -32% |
Total | 2,992 | 2,45,879 | 100.0% | 2,608 | 2,14,391 | 100.0% | 15% |
Revenue Analysis [Q4 FY23 and FY23]
Global Generics (GG)
North America
Europe
India
Emerging Markets
Pharmaceutical Services and Active Ingredients (PSAI)
Income Statement Highlights:
Q4 gross margin at 57.2% (GG: 61.7%, PSAI: 25.2%). Gross margin increased by ~430 bps YoY, while it declined by ~210 bps QoQ. YoY increase was driven by new product sales of certain products with higher gross margins, and favourable foreign exchange, partially offset by price erosion, primarily in United States and Europe. QoQ decline was primarily due to lower government incentives and product mix, which was partly offset by income from divestment of non-core brands.
Other Highlights:
All amounts in millions, except EPS
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, as the case may be, 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 | ||
Free Cash Flow | ||
| Three months Ended March 31, 2023 | Year Ended March 31, 2023 |
Net cash generated from operating activities | 23,376 | 69,587 |
Less: |
|
|
Taxes | (3,697) | (10,714) |
Investments in PPE and Intangibles | (3,722) | (18,782) |
Free Cash Flow | 15,957 | 40,091 |
Operating working capital | |
| Year Ended March 31, 2023 |
Inventories | 48,670 |
Trade Receivables | 72,485 |
Less: |
|
Trade Payables | 26,444 |
Operating Working Capital | 94,711 |
Net cash surplus | |
| Year Ended March 31, 2023 |
Cash and cash equivalents | 5,779 |
Investments | 56,678 |
Short-term borrowings | (7,390) |
Long-term borrowings, current portion | (4,804) |
Less: |
|
Restricted cash balance | 89 |
Lease liabilities (included in Long-term borrowings, current portion) | (1,004) |
Equity Investments (included in Investments) | 716 |
Net Cash Surplus | 50,462 |
All amounts in millions, except EPS
Computation of Return on Capital Employed | |
| Year Ended March 31, 2023 |
Profit before tax | 60,367 |
Less: |
|
Interest and Investment Income (Excluding forex gain/loss) | 627 |
Earnings Before Interest and taxes [A] | 59,740 |
|
|
Average Capital Employed [B] | 1,72,602 |
|
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Return on Capital Employed (A/B) (Ratio) | 34.6% |
Computation of capital employed | ||
| Year Ended March 31, 2023 | Year Ended March 31, 2022 |
Property Plant and Equipment | 66,462 | 62,169 |
Intangibles | 30,849 | 27,246 |
Goodwill | 4,245 | 4,418 |
Investment in equity accounted associates | 4,702 | 4,318 |
Other Current Assets | 20,069 | 13,902 |
Other investments | 660 | 3,668 |
Other non-current assets | 800 | 894 |
Inventories | 48,670 | 50,884 |
Trade Receivables | 72,485 | 66,818 |
Derivative Financial Instruments | 1,095 | 1,427 |
Less: |
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Other Liabilities | 42,320 | 36,414 |
Provisions | 5,513 | 4,315 |
Trade payables | 26,444 | 25,572 |
Operating Capital Employed | 1,75,760 | 1,69,443 |
Average Capital Employed | 1,72,602 |
Computation of EBITDA
Refer page no. 2 and 4 for EBITDA computations.
Earnings Call Details (07:30 pm IST, 10:00 am EDT, May 10, 2023)
The management of the Company will host an earnings call to discuss the Company’s financial performance and answer any questions from the participants.
Conference Joining Information |
Option 1: Express Join with DiamondPass™ |
Pre-register with the below link and join without waiting for the operator.
https://services.choruscall.in/DiamondPassRegistration/register?confirmationNumber=8728481&linkSecurityString=2cca7c8d18
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 17th, 2023. For play back dial in phone No: +91 22 7194 5757, and Playback Code is 65827.
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 an integrated pharmaceutical company, committed to providing affordable and innovative medicines for healthier lives. Through its businesses, 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 gastrointestinal, cardiovascular, diabetology, oncology, pain management and dermatology. Dr Reddy’s operates in markets across the globe. Our Major markets include – USA, India, Russia & CIS countries, and Europe. 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, (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, 2022. The company assumes no obligation to update any information contained herein.”
Contacts
INVESTOR RELATIONS
RICHA PERIWAL
richaperiwal@drreddys.com
MEDIA RELATIONS
USHA IYER
ushaiyer@drreddys.com
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