Dr Reddys Laboratories Ltd 6-K, filed Jan 25, 2023
Dr Reddys Laboratories Ltd (RDY)
About this 6-K
Dr Reddys Laboratories Ltd filed this 6-K on January 25, 2023.
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
January, 2023
Commission File Number 1-15182
DR. REDDY’S LABORATORIES LIMITED
(Translation of registrant’s name into English)
8-2-337, Road No. 3, Banjara Hills
Hyderabad, Telangana 500 034, India
+91-40-49002900
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ______
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ______
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ¨ No x
If “Yes” is marked, indicate below the file number assigned to registrant in connection with Rule 12g3-2(b): 82-________.
EXHIBITS
|
Exhibit |
Description of Exhibits | |
| 99.1 | Intimation dated January 25, 2023 regarding Outcome of Board meeting | |
| 99.2 | Intimation dated January 25, 2023 regarding grant of stock options | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| DR. REDDY’S LABORATORIES LIMITED (Registrant) | ||
| Date: January 25, 2023 | By: | /s/ K Randhir Singh |
| Name: | K Randhir Singh | |
| Title: | Company Secretary | |
Exhibit 99.1
 |
Dr. Reddy’s Laboratories Ltd. 8-2-337, Road No. 3, Banjara Hills, Hyderabad - 500 034, Telangana, CIN : L85195TG1984PLC004507
Tel :+91 40 4900 2900 Fax :+91 40 4900 2999 Email :mail@drreddys.com www.drreddys.com |
January 25, 2023
National Stock Exchange of India Ltd. (Scrip Code: DRREDDY-EQ)
BSE Limited (Scrip Code: 500124)
New York Stock Exchange Inc. (Stock Code: RDY)
NSE IFSC Ltd (Stock Code: DRREDDY)
Dear Sir/Madam,
Sub: Outcome of Board Meeting – Unaudited Financial Results for the quarter and nine months ended December 31, 2022
In continuation of our letter dated December 27, 2022, we would like to inform you that the Board of Directors of the Company at its meeting held on January 25, 2023, has inter alia approved the Unaudited Financial Results of the Company for the quarter and nine months ended December 31, 2022.
In terms of the above, we are enclosing herewith the following:
| 1. | Unaudited Consolidated Financial Results of the Company and its subsidiaries for the quarter and nine months ended December 31, 2022, prepared in compliance with International Financial Reporting Standards (IFRS) as issued by International Accounting Standards Board (IASB). |
| 2. | Press Release on Unaudited Financial Results of the Company for the aforesaid period. |
| 3. | Unaudited Consolidated Financial Results of the Company and its subsidiaries for the quarter and nine months ended December 31, 2022, as per Indian Accounting Standards. |
| 4. | Unaudited Standalone Financial Results of the Company for the quarter and nine months ended December 31, 2022, as per Indian Accounting Standards. |
Pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Limited Review reports of the Statutory Auditors on the Unaudited Consolidated and Unaudited Standalone Financial Results as mentioned at serial nos. 3 & 4, respectively, are also enclosed.
The Board Meeting commenced at 9.00 AM and concluded at 3.45 PM.
This is for your information and records.
Thanking you.
| Yours faithfully, | |
| For Dr. Reddy’s Laboratories Limited | |
| /s/K Randhir Singh | |
| K Randhir Singh | |
| Company Secretary, Compliance Officer & Head-CSR |
Encl: as above
| |
Dr. Reddy’s Laboratories Ltd. 8-2-337, Road No. 3, Banjara Hills, Hyderabad - 500 034, Telangana, India. CIN : L85195TG1984PLC004507
Tel :+91 40 4900 2900 Fax :+91 40 4900 2999 Email :mail@drreddys.com www.drreddys.com |
DR. REDDY'S LABORATORIES LIMITED
Unaudited consolidated financial results of Dr. Reddy's Laboratories Limited and its subsidiaries for the quarter and nine months ended 31 December 2022 prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB)
| All amounts in Indian Rupees millions | ||||||||||||||||||||||||||
| Quarter ended | Nine months ended | Year ended | ||||||||||||||||||||||||
| 31.12.2022 | 30.09.2022 | 31.12.2021 | 31.12.2022 | 31.12.2021 | 31.03.2022 | |||||||||||||||||||||
| Sl. No. | Particulars | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |||||||||||||||||||
| 1 | Revenues | 67,700 | 63,057 | 53,197 | 1,82,911 | 1,60,023 | 2,14,391 | |||||||||||||||||||
| 2 | Cost of revenues | 27,607 | 25,810 | 24,585 | 79,565 | 74,926 | 1,00,551 | |||||||||||||||||||
| 3 | Gross profit (1 - 2) | 40,093 | 37,247 | 28,612 | 1,03,346 | 85,097 | 1,13,840 | |||||||||||||||||||
| 4 | Selling, general and administrative expenses | 17,981 | 16,560 | 15,411 | 50,034 | 46,407 | 62,081 | |||||||||||||||||||
| 5 | Research and development expenses | 4,821 | 4,869 | 4,159 | 14,015 | 13,156 | 17,482 | |||||||||||||||||||
| 6 | Impairment of non-current assets | 134 | 25 | 47 | 159 | 47 | 7,562 | |||||||||||||||||||
| 7 | Other (income)/expense,net | 732 | (334 | ) | (240 | ) | (5,626 | ) | (2,470 | ) | (2,761 | ) | ||||||||||||||
| Total operating expenses | 23,668 | 21,120 | 19,377 | 58,582 | 57,140 | 84,364 | ||||||||||||||||||||
| 8 | Results from operating activities [(3) - (4 + 5 + 6 + 7)] | 16,425 | 16,127 | 9,235 | 44,764 | 27,957 | 29,476 | |||||||||||||||||||
| Finance income | 279 | 153 | 504 | 3,128 | 1,902 | 3,077 | ||||||||||||||||||||
| Finance expense | (418 | ) | (309 | ) | (215 | ) | (1,074 | ) | (642 | ) | (958 | ) | ||||||||||||||
| 9 | Finance (expense)/income,net | (139 | ) | (156 | ) | 289 | 2,054 | 1,260 | 2,119 | |||||||||||||||||
| 10 | Share of profit of equity accounted investees, net of tax | 60 | 140 | 185 | 294 | 598 | 703 | |||||||||||||||||||
| 11 | Profit before tax (8 + 9 + 10) | 16,346 | 16,111 | 9,709 | 47,112 | 29,815 | 32,298 | |||||||||||||||||||
| 12 | Tax expense,net | 3,875 | 4,983 | 2,644 | 11,637 | 7,122 | 8,730 | |||||||||||||||||||
| 13 | Profit for the period/year (11 -12) | 12,471 | 11,128 | 7,065 | 35,475 | 22,693 | 23,568 | |||||||||||||||||||
| 14 | Earnings per share: | |||||||||||||||||||||||||
| Basic earnings per share of Rs.5/- each | 75.09 | 67.04 | 42.58 | 213.69 | 136.82 | 142.08 | ||||||||||||||||||||
| Diluted earnings per share of Rs.5/- each | 74.95 | 66.89 | 42.48 | 213.24 | 136.48 | 141.69 | ||||||||||||||||||||
| (Not annualised) | (Not annualised) | (Not annualised) | (Not annualised) | (Not annualised) | ||||||||||||||||||||||
| Segment information | All amounts in Indian Rupees millions | |||||||||||||||||||||||||
| Quarter ended | Nine months ended | Year ended | ||||||||||||||||||||||||
| 31.12.2022 | 30.09.2022 | 31.12.2021 | 31.12.2022 | 31.12.2021 | 31.03.2022 | |||||||||||||||||||||
| Sl. No. | Particulars | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |||||||||||||||||||
| Segment wise revenue and results: | ||||||||||||||||||||||||||
| 1 | Segment revenue: | |||||||||||||||||||||||||
| a) Pharmaceutical Services and Active Ingredients | 10,142 | 8,110 | 8,887 | 26,385 | 27,739 | 36,995 | ||||||||||||||||||||
| b) Global Generics | 59,241 | 55,946 | 44,508 | 1,59,511 | 1,33,052 | 1,79,170 | ||||||||||||||||||||
| c) Others | 701 | 677 | 1,418 | 2,118 | 3,788 | 4,481 | ||||||||||||||||||||
| Total | 70,084 | 64,733 | 54,813 | 1,88,014 | 1,64,579 | 2,20,646 | ||||||||||||||||||||
| Less: Inter-segment revenues | 2,384 | 1,676 | 1,616 | 5,103 | 4,556 | 6,255 | ||||||||||||||||||||
| Net revenues | 67,700 | 63,057 | 53,197 | 1,82,911 | 1,60,023 | 2,14,391 | ||||||||||||||||||||
| 2 | Segment results: | |||||||||||||||||||||||||
| Gross profit from each segment | ||||||||||||||||||||||||||
| a) Pharmaceutical Services and Active Ingredients | 1,409 | 233 | 1,638 | 2,752 | 5,434 | 6,821 | ||||||||||||||||||||
| b) Global Generics | 38,255 | 36,567 | 25,731 | 99,221 | 76,440 | 1,03,270 | ||||||||||||||||||||
| c) Others | 429 | 447 | 1,243 | 1,373 | 3,223 | 3,749 | ||||||||||||||||||||
| Total | 40,093 | 37,247 | 28,612 | 1,03,346 | 85,097 | 1,13,840 | ||||||||||||||||||||
| Less: Selling and other un-allocable expenditure, net of other income | 23,747 | 21,136 | 18,903 | 56,234 | 55,282 | 81,542 | ||||||||||||||||||||
| Total profit before tax | 16,346 | 16,111 | 9,709 | 47,112 | 29,815 | 32,298 | ||||||||||||||||||||
Global Generics segment includes operations of Biologics business. Inter-segment revenues represent sale from Pharmaceutical Services and Active Ingredients to Global Generics at cost.
Notes:
| 1 | The above financial results have been prepared in accordance with International Financial Reporting Standards and its interpretations (IFRS), as issued by the International Accounting Standards Board (IASB). | |
| 2 | During the quarter and nine months ended 31 December 2022, an amount of Rs. 435 million and Rs. 2,806 million respectively, representing government grants has been accounted for as a reduction from cost of revenues. | |
| 3 | Included in “Other income/(expense), net” for the quarter ended 31 December 2022, is an amount of Rs. 991 million representing the Loss on sale of Assets, pursuant to agreement dated 16 December 2022 with Delpharm Development Leiden B.V (Delpharm) for transfer of its certain assets, liabilities and employees at its site at Leiden, Netherlands.This transaction pertains to Company’s Global Generics segment. | |
| 4 | On 23 June 2022, the Company entered into a settlement agreement with Indivior Inc., Indivior UK Limited and Aquestive Therapeutics, Inc. Pursuant to the agreement, the Company will receive payments totaling U.S.$ 72 million by 31 March 2024. The said agreement resolves all claims between the parties relating to the Company’s generic buprenorphine and naloxone sublingual film including Indivior’s and Aquestive’s patent infringement allegations and the Company’s antitrust counterclaims. On 28 June 2022 the U.S. Court dismissed all claims and counterclaims pending in the case with prejudice, pursuant to a joint stipulation of dismissal filed by the parties. The Company recognised the present value of the amount receivable at Rs.5,638 million (U.S.$ 71.39 million discounted to present value) on the date of the settlement as ‘Other income, net’ in the consolidated financial results of the Company. The aforesaid transaction pertain to Company’s Global Generics segment. | |
| 5 | As the revenues and gross profits of the Proprietary Products segment are considerably lower than the quantitative thresholds mentioned in IFRS 8, “Operating Segments”, the Company believes that Proprietary Products segment no longer qualifies to be a reportable segment and consequently, effective 1 April 2022, the Company included the financial information relating to Proprietary Products segment in “Others”. The corresponding information relating to Proprietary Products segment for earlier periods has been restated to reflect the aforementioned change. | |
| 6 | Revenues for the year ended 31 March 2022 includes: a) Rs. 1,774 million towards the sale of territorial rights relating to two of the Company’s anti-bacterial brands (Ciprolet® and Levolet®) in Russia and CIS region to Alium JSC; b) Rs. 390 million towards the sale of two of the Company's Brands (Daffy bar and Combihale) in India to Mankind Pharma Limited; c) Rs. 1,084 million towards sale of its U.S. and Canada territory rights for ELYXYBTM (celecoxib oral solution) 25 mg/mL, to BioDelivery Sciences International, Inc. The aforesaid transactions pertain to Company’s Global Generics and Others segment. | |
| 7 | During the year ended 31 March 2022, there were significant changes to the market conditions for certain of the products forming part of Company’s Global Generics and Others segment. The changes include, decrease in the market potential of products, increased competition leading to lower volumes, and revenues not being in line with projections. Due to these adverse market developments, the Company recorded an impairment loss of Rs. 7,562 million on various non-current assets. The said impairment loss includes: a) Rs. 4,337 million relating to PPC-06 (Tepilamide Fumarate Extended Release Tablets) in-process research and development asset; b) Rs. 3,051 million pertaining to Shreveport Cash Generating Unit (“CGU”) comprising of Property, plant and equipment and Goodwill; c) Rs. 174 million relating to other intangible assets. | |
| 8 | The Company has considered the impact of recent tax regulations and developments, including updates to its estimate on the impact of adoption of the Taxation Laws (Amendment) Act 2019, in determining its “Tax expense/(benefit)” for the quarter and nine months ended 31 December 2022. | |
| 9 | The Company received an anonymous complaint in September 2020, alleging that healthcare professionals in Ukraine and potentially in other countries were provided with improper payments by or on behalf of the Company in violation of U.S. anti-corruption laws, specifically the U.S. Foreign Corrupt Practices Act. The Company disclosed the matter to the U.S. Department of Justice (“DOJ”), Securities and Exchange Commission (“SEC”) and Securities Exchange Board of India. The Company engaged a U.S. law firm to conduct the investigation at the instruction of a committee of the Company’s Board of Directors. On 6 July 2021 the Company received a subpoena from the SEC for the production of related documents, which were provided to the SEC. The Company made presentations to the SEC and the DOJ in relation to the investigation with respect to certain countries during the current and previous fiscal year. The Company also made a presentation to the SEC and the DOJ in relation to its Global Compliance Framework, including the ongoing enhancement initiatives, during the nine months ended 31 December 2022. The Company is complying with its listing obligations as it relates to updating the regulatory agencies. While the findings from the aforesaid investigations could result in government or regulatory enforcement actions against the Company in the United States and/or foreign jurisdictions, which can lead to civil and criminal sanctions under relevant laws, the outcomes including liabilities are not reasonably ascertainable at this time. | |
| 10 | The Company considered the uncertainties relating to the military conflict between Russia and Ukraine, in assessing the recoverability of receivables, goodwill, intangible assets, investments and other assets. For this purpose, the Company considered internal and external sources of information up to the date of approval of these financial results. Based on its judgments, estimates and assumptions, including sensitivity analysis, the Company expects to fully recover the carrying amount of receivables, goodwill, intangible assets, investments and other assets. The Company will continue to closely monitor any material changes to future economic conditions. | |
| 11 | The unaudited results were reviewed by the Audit Committee of the Board and approved by the Board of Directors of the Company at their meeting held on 25 January 2023. | |
| 12 | The results for the quarter and nine months ended 31 December 2022 were subject to a "Limited Review" by the Independent Auditors of the Company. An unqualified report has been issued by them thereon. |
|
Place: Hyderabad Date: 25 January 2023 |
|
By order of the Board For Dr. Reddy's Laboratories Limited
G V Prasad Co-Chairman & Managing Director
|
| CONTACT | ||
|
DR. REDDY'S LABORATORIES LTD. 8-2-337, Road No. 3, Banjara Hills, Hyderabad - 500034. Telangana, India. |
Investor relationS | Media relationS |
| Richa Periwal richaperiwal@drreddys.com | USHA IYER ushaiyer@drreddys.com | |
Dr. Reddy’s Q3 & 9M FY23 Financial Results
Hyderabad, India, January 25, 2023: Dr. Reddy’s Laboratories Ltd. (BSE: 500124 | NSE: DRREDDY | NYSE: RDY | NSEIFSC: DRREDDY) today announced its consolidated financial results for the quarter and the nine months ended December 31, 2022. The information mentioned in this release is on the basis of consolidated financial statements under International Financial Reporting Standards (IFRS).
| Q3 Performance Summary | 9M Performance Summary |
| Rs. 6,770 Cr | Rs. 18,291 Cr |
| Revenue | Revenue |
| [Up: 27% YoY; Up: 7% QoQ] | [Up: 14% YoY] |
| 59.2% | 56.5% |
| Gross Margin | Gross Margin |
| [Q3 FY22: 53.8%; Q2 FY23: 59.1%] | [9M FY22: 53.2%] |
| Rs.1,798 Cr | Rs. 5,003 Cr |
| SGNA expenses | SGNA expenses |
| [Up: 17% YoY; Up: 9% QoQ] | [Up: 8% YoY] |
| Rs. 482 Cr | Rs. 1,402 Cr |
| R&D expenses | R&D expenses |
| [7.1% of Revenues] | [7.7% of Revenues] |
| Rs. 1,966 Cr | Rs. 5,677 Cr |
| EBITDA | EBITDA |
| [29.0% of Revenues; Up: 55% YoY; Up: 2% QoQ] | [31.0% of Revenues; Up: 48% YoY] |
| Rs. 1,635 Cr | Rs. 4,711 Cr |
| Profit before Tax | Profit before Tax |
| [Up: 68% YoY; Up: 1% QoQ] | [Up: 58% YoY] |
| Rs. 1,247 Cr | Rs. 3,548 Cr |
| Profit after Tax | Profit after Tax |
| [Up: 77% YoY; Up: 12% QoQ] | [Up: 56% YoY] |
Commenting on the results, Co-chairman & MD, G V Prasad said “Our strong financial performance was supported by growth in the US and the Russia markets. We continue to strengthen our development pipeline to reach more patients globally.”
| All amounts in millions, except EPS | All US dollar amounts based on convenience translation rate of I USD = Rs. 82.72 |
Dr. Reddy’s Laboratories Limited and Subsidiaries
Consolidated Income Statement
Q3 FY23 | Q3 FY22 | YoY | Q2 FY23 | QoQ | ||||||||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | Gr % | ($) | (Rs.) | Gr % | ||||||||||||||||||||||||
| Revenues | 818 | 67,700 | 643 | 53,197 | 27 | 762 | 63,057 | 7 | ||||||||||||||||||||||||
| Cost of Revenues | 334 | 27,607 | 297 | 24,585 | 12 | 312 | 25,810 | 7 | ||||||||||||||||||||||||
| Gross Profit | 485 | 40,093 | 346 | 28,612 | 40 | 450 | 37,247 | 8 | ||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||
| Selling, General & Administrative expenses | 217 | 17,981 | 186 | 15,411 | 17 | 200 | 16,560 | 9 | ||||||||||||||||||||||||
| Research and Development expenses | 58 | 4,821 | 50 | 4,159 | 16 | 59 | 4,869 | (1 | ) | |||||||||||||||||||||||
| Impairment of non-current assets | 2 | 134 | 1 | 47 | 185 | 0 | 25 | 436 | ||||||||||||||||||||||||
| Other operating expense/(income) | 9 | 732 | (3 | ) | (240 | ) | - | (4 | ) | (334 | ) | - | ||||||||||||||||||||
| Results from operating activities | 199 | 16,425 | 112 | 9,235 | 78 | 195 | 16,127 | 2 | ||||||||||||||||||||||||
| Net finance expense/(income) | 2 | 139 | (3 | ) | (289 | ) | - | 2 | 156 | (10 | ) | |||||||||||||||||||||
| Share of profit of equity accounted investees | (1 | ) | (60 | ) | (2 | ) | (185 | ) | (68 | ) | (2 | ) | (140 | ) | (57 | ) | ||||||||||||||||
| Profit before Income Tax | 198 | 16,346 | 117 | 9,709 | 68 | 195 | 16,111 | 1 | ||||||||||||||||||||||||
| Income Tax | 47 | 3,875 | 32 | 2,644 | 47 | 60 | 4,983 | (22 | ) | |||||||||||||||||||||||
| Profit for the period | 151 | 12,471 | 85 | 7,065 | 77 | 135 | 11,128 | 12 | ||||||||||||||||||||||||
| Diluted Earnings Per Share (EPS) | 0.91 | 74.95 | 0.51 | 42.48 | 76 | 0.81 | 66.89 | 12 | ||||||||||||||||||||||||
| As % to revenues | Q3 FY23 | Q3 FY22 | Q2 FY23 | |||||||||
| Gross Profit | 59.2 | 53.8 | 59.1 | |||||||||
| SG&A | 26.6 | 29.0 | 26.3 | |||||||||
| R&D | 7.1 | 7.8 | 7.7 | |||||||||
| EBITDA | 29.0 | 23.8 | 30.6 | |||||||||
| PBT | 24.1 | 18.3 | 25.5 | |||||||||
| PAT | 18.4 | 13.3 | 17.6 | |||||||||
EBITDA Computation
| Q3 FY23 | Q3 FY22 | Q2 FY23 | ||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | ||||||||||||||||||
| Profit before Income Tax | 198 | 16,346 | 117 | 9,709 | 195 | 16,111 | ||||||||||||||||||
| Interest income (net)* | (1 | ) | (93 | ) | (1 | ) | (72 | ) | 1 | 61 | ||||||||||||||
| Depreciation | 27 | 2,245 | 25 | 2,066 | 25 | 2,107 | ||||||||||||||||||
| Amortization | 12 | 1,026 | 11 | 910 | 12 | 1,018 | ||||||||||||||||||
| Impairment | 2 | 134 | 1 | 47 | 0 | 25 | ||||||||||||||||||
| EBITDA | 238 | 19,658 | 153 | 12,659 | 234 | 19,322 | ||||||||||||||||||
* Includes income from Investments
| All amounts in millions, except EPS | All US dollar amounts based on convenience translation rate of I USD = Rs. 82.72 |
Key Balance Sheet Items
As on 31st Dec 2022 | As on 30th Sep 2022 | As on 31st Dec 2021 | ||||||||||||||||||||||
| Particulars | ($) | (Rs.) | ($) | (Rs.) | ($) | (Rs.) | ||||||||||||||||||
| Cash and cash equivalents and current investments | 606 | 50,164 | 354 | 29,306 | 454 | 37,556 | ||||||||||||||||||
| Trade receivables (current & non-current) | 907 | 75,046 | 931 | 76,987 | 756 | 62,507 | ||||||||||||||||||
| Inventories | 596 | 49,326 | 593 | 49,042 | 601 | 49,675 | ||||||||||||||||||
| Property, plant and equipment | 786 | 64,996 | 771 | 63,817 | 761 | 62,971 | ||||||||||||||||||
| Goodwill and Other Intangible assets | 428 | 35,401 | 436 | 36,084 | 442 | 36,581 | ||||||||||||||||||
| Loans and borrowings (current & non-current) | 214 | 17,663 | 209 | 17,289 | 340 | 28,164 | ||||||||||||||||||
| Trade payables | 315 | 26,023 | 275 | 22,778 | 296 | 24,492 | ||||||||||||||||||
| Equity | 2,663 | 2,20,273 | 2,493 | 2,06,225 | 2,297 | 1,90,016 | ||||||||||||||||||
Revenue Mix by Segment
| Q3 FY23 | Q3 FY22 | YoY | Q2 FY23 | QoQ | ||||||||||||||||
| Segment | (Rs.) | (Rs.) | Gr % | (Rs.) | Gr % | |||||||||||||||
| Global Generics | 59,241 | 44,508 | 33 | 55,946 | 6 | |||||||||||||||
| North America | 30,567 | 18,645 | 64 | 28,001 | 9 | |||||||||||||||
| Europe | 4,303 | 4,058 | 6 | 4,199 | 2 | |||||||||||||||
| India | 11,274 | 10,266 | 10 | 11,500 | (2 | ) | ||||||||||||||
| Emerging Markets | 13,097 | 11,539 | 14 | 12,246 | 7 | |||||||||||||||
| Pharmaceutical Services and Active Ingredients (PSAI) | 7,758 | 7,271 | 7 | 6,434 | 21 | |||||||||||||||
| Others | 701 | 1,418 | (51 | ) | 677 | 4 | ||||||||||||||
| Total | 67,700 | 53,197 | 27 | 63,057 | 7 | |||||||||||||||
Revenue Analysis
Global Generics (GG)
Revenues from GG segment at Rs. 59.2 billion:
| Ø | Year-on-year growth of 33% and sequential quarter growth of 6% was primarily driven by new product launches, increase in volumes of our base business and favorable forex movement, offset partially due to price erosion in our generic markets. |
North America
Revenues from North America at Rs. 30.6 billion:
| Ø | Year-on-year growth of 64%, driven by new products launches, increase in volumes and a favorable forex movement, which was partly offset by price erosion. |
| Ø | Sequential growth of 9%, driven by increase in volumes partly offset by price erosion in some products. |
| Ø | We launched five new products in US during the quarter. These were desmopressin MDV, OTC guaifenesin ER, fingolimod capsules, thiotepa injection and biorphen injection. |
| Ø | We filed one new ANDA during the quarter. As of 31st December 2022, cumulatively 78 generic filings are pending for approval with the USFDA (75 ANDAs and 3 NDAs under 505(b)(2) route). Out of these 78 pending filings, 41 are Para IVs and we believe 21 have ‘First to File’ status. |
Europe
Revenues from Europe at Rs. 4.3 billion:
| Ø | Year-on-year growth of 6%, driven by new product launches, increase in volumes which was partly offset by price erosion and adverse forex rates. Sequential growth of 2%, driven by new product launches and favorable forex movement, and was partly offset by reduction in volumes of certain products. |
| Ø | Revenues from Germany at Rs. 2.2 billion. Year-on-year decline of 1% and sequential decline of 6%. |
| Ø | Revenues from UK/OL at Rs. 1.3 billion. Year-on-year growth of 25% and sequential growth of 16%. |
| Ø | Revenues from other European countries at Rs. 0.8 billion. Year-on-year growth of 3% and sequential growth of 8%. |
India
Revenues from India at Rs. 11.3 billion:
| Ø | Year-on-year growth of 10%, driven by increase in sales prices and new product launches, partly offset by reduction in volumes for certain products. |
| Ø | Sequential decline of 2%, primarily due to reduction in volumes of certain products. |
Emerging Markets
Revenues from Emerging Markets at Rs. 13.1 billion. Year-on-year growth of 14% and sequential quarter growth of 7%:
| Ø | Revenues from Russia at Rs. 6.9 billion. Year-on-year growth of 45% was on account of increase in volumes and prices, new product launches, and favorable forex rates. Sequential quarter growth of 16% was primarily on account of increase in volumes. |
| Ø | Revenues from other CIS countries and Romania at Rs. 2.2 billion. Year-on-year decline of 6% was due to reduction in volumes and adverse forex movement, partly offset by increase in sales price of some products and new product launches. Sequential quarter growth of 4% was driven by new product launches and favorable forex movement. |
| Ø | Revenues from Rest of World (RoW) territories at Rs. 4.0 billion. Year-on-year decline of 10% was on account of higher base in previous year due to the covid product sales and decrease in sales price of some of our key molecules, which was partly offset by new product launches. Sequential decline of 4% was on account of decrease in sales price of some products, which was partly offset by new product launches and favorable forex movement. |
Pharmaceutical Services and Active Ingredients (PSAI)
Revenues from PSAI at Rs. 7.8 billion:
| Ø | Year-on-year growth of 7% was driven by favorable forex movement and increase in volumes partly offset by price erosion. |
| Ø | Sequential growth of 21% was driven by increase in volumes and new product launches. |
| Ø | During the quarter we filed two DMFs in the US. |
Income Statement Highlights:
| Ø | Gross profit margin at 59.2%: |
| · | Increased by ~545 bps over previous year driven mainly due to new product launches with higher margins, favorable products mix and favorable forex movement which was partly offset by price erosion. Margins have marginally increased by 15 bps sequentially. |
| · | Gross profit margin for GG and PSAI business segments are at 64.6% and 18.2% respectively. |
| Ø | SG&A expenses at Rs. 18.0 billion, increased by 17% year-on-year. This increase was primarily attributable to investments in sales & marketing, annual increments, certain one-off expenses and higher forex rate. Sequentially the SG&A expenses increased by 9% mainly due to increase in sales & marketing spends and other one-off expenses. |
| Ø | R&D expenses at Rs. 4.8 billion. As % to revenues - Q3 FY23: 7.1% | Q2 FY23: 7.7% | Q3 FY22: 7.8%. We continue our focus on investing in R&D to build a healthy pipeline of new products across our markets including development of products in our biosimilars and generics businesses. |
| Ø | Impairment charge of Rs. 134 million as compared to Rs. 47 million charge in Q3 FY22. |
| Ø | Other operating expense at Rs. 732 million compared to income of Rs. 240 million in Q3 FY22. Net other expense during the quarter included the loss on sale of asset at Leiden, Netherlands. |
| Ø | Net Finance expense at Rs. 139 million compared to income of Rs. 289 million in Q3 FY22. |
| Ø | Profit before Tax at Rs. 16.3 billion, which is 24.1% of revenues. The profit before tax increased by 68% year-on-year and by 1% sequentially. |
| Ø | Profit after Tax at Rs. 12.5 billion. The effective tax rate is ~23.7% for the quarter. |
| Ø | Diluted earnings per share is at Rs. 74.95. |
Other Highlights:
| Ø | EBITDA at Rs. 19.7 billion and the EBITDA margin is 29.0%. |
| Ø | Capital expenditure is at Rs. 2.9 billion. |
| Ø | Free cash-flow is at Rs. 19.8 billion. |
| Ø | Net cash surplus for the company is at Rs. 34.0 billion as on December 31, 2022. Consequently, net debt to equity ratio is (0.15). |
| Ø | ROCE for the company is 35.8% (annualized). |
Earnings Call Details (07:00 pm IST, 08:30 am EST, Jan 25, 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.
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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, 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, 2022. The company assumes no obligation to update any information contained herein.”
| S.R. Batliboi & Associates
LLP Chartered Accountants |
THE SKYVIEW 10 18th Floor, "NORTH LOBBY" Survey No. 83/1, Raidurgam
Tel: +91 40 6141 6000 |
Independent Auditor’s Review Report on the Quarterly and Year to Date Unaudited Consolidated Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended
Review Report to
The Board of Directors
Dr. Reddy’s Laboratories Limited
| 1. | We have reviewed the accompanying Statement of Unaudited Consolidated Financial Results of Dr. Reddy’s Laboratories Limited (the “Holding Company”) and its subsidiaries (the Holding Company and its subsidiaries together referred to as “the Group”), and its joint ventures for the quarter and nine month period ended December 31, 2022 (the “Statement”) attached herewith, being submitted by the Holding Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the “Listing Regulations”). |
| 2. | The Holding Company’s Management is responsible for the preparation of the Statement in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, (Ind AS 34) “Interim Financial Reporting” prescribed under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. The Statement has been approved by the Holding Company’s Board of Directors . Our responsibility is to express a conclusion on the Statement based on our review. |
| 3. | We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. |
We also performed procedures in accordance with the Circular No. CIR/CFD/CMD1/44/2019 dated March 29, 2019 issued by the Securities and Exchange Board of India under Regulation 33(8) of the Listing Regulations, to the extent applicable.
| 4. | The Statement includes the results of the following entities: |
| S.No | Name of the Company | |
| Subsidiaries | ||
| 1 | Aurigene Oncology Limited (Formerly, Aurigene Discovery Technologies Limited) | |
| 2 | Cheminor Investments Limited | |
| 3 | Dr. Reddy’s Bio-Sciences Limited | |
| 4 | Dr. Reddy’s Formulations Limited | |
| 5 | Dr. Reddy’s Farmaceutica Do Brasil Ltda. | |
| 6 | Dr. Reddy's Laboratories SA | |
| 7 | Idea2Enterprises (India) Private Limited | |
| 8 | Imperial Credit Private Limited | |
| 9 | Industrias Quimicas Falcon de Mexico, S.A.de C.V. | |
| 10 | Svaas Wellness Limited (Formerly known as Regkinetics Services Limited) | |
| 11 | Aurigene Discovery Technologies (Malaysia) Sdn. Bhd. | |
| 12 | Aurigene Pharmaceutical Services Limited | |
| 13 | beta Institut gemeinnützige GmbH |
S.R. Batliboi & Associates LLP, a Limited Liability Partnership with LLP Identity No. AAB-4295 Regd. Office: 22, Camac Street, Block ‘B’, 3rd Floor, Kolkata-700 016 |
| S.R. Batliboi & Associates
LLP Chartered Accountants |
| 14 | betapharm Arzneimittel GmbH | |
| 15 | Chirotech Technology Limited | |
| 16 | DRL Impex Limited | |
| 17 | Dr. Reddy’s Laboratories (Australia) Pty. Limited | |
| 18 | Dr. Reddy’s (Beijing) Pharmaceutical Co. Limited | |
| 19 | Dr. Reddy’s Laboratories Canada, Inc. | |
| 20 | Dr. Reddy's Laboratories Chile SPA. | |
| 21 | Dr. Reddy’s Laboratories (EU) Limited | |
| 22 | Dr. Reddy’s Laboratories Inc. | |
| 23 | Dr. Reddy's Laboratories Japan KK | |
| 24 | Dr. Reddy’s Laboratories Kazakhstan LLP | |
| 25 | Dr. Reddy’s Laboratories LLC, Ukraine | |
| 26 | Dr. Reddy's Laboratories Louisiana LLC | |
| 27 | Dr. Reddy’s Laboratories Malaysia Sdn. Bhd. | |
| 28 | Dr. Reddy’s Laboratories New York, LLC | |
| 29 | Dr. Reddy's Laboratories Philippines Inc. | |
| 30 | Dr. Reddy’s Laboratories (Proprietary) Limited | |
| 31 | Dr. Reddy's Laboratories Romania S.R.L. | |
| 32 | Dr. Reddy's Laboratories SAS | |
| 33 | Dr. Reddy's Laboratories Taiwan Limited | |
| 34 | Dr. Reddy's Laboratories (Thailand) Limited | |
| 35 | Dr. Reddy’s Laboratories (UK) Limited | |
| 36 | Dr. Reddy’s New Zealand Limited | |
| 37 | Dr. Reddy's Research and Development B.V. | |
| 38 | Dr. Reddy’s Srl | |
| 39 | Dr. Reddy's Venezuela, C.A. | |
| 40 | Lacock Holdings Limited | |
| 41 | Dr. Reddy’s Laboratories LLC, Russia | |
| 42 | Promius Pharma LLC | |
| 43 | Reddy Holding GmbH | |
| 44 | Reddy Netherlands B.V. | |
| 45 | Reddy Pharma Iberia SAU | |
| 46 | Reddy Pharma Italia S.R.L | |
| 47 | Reddy Pharma SAS | |
| 48 | Nimbus Health GmbH | |
| Joint ventures | ||
| 1 | DRES Energy Private Limited | |
| 2 | Kunshan Rotam Reddy Pharmaceutical Company Limited | |
| Other consolidating entities | ||
| 1 | Cheminor Employees Welfare Trust | |
| 2 | Dr. Reddy's Research Foundation |
| 5. | Based on our review conducted and procedures performed as stated in paragraph 3 above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with recognition and measurement principles laid down in the aforesaid Indian Accounting Standards (‘Ind AS’) specified under Section 133 of the Companies Act, 2013, as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement. |
| /s/ Shankar Srinivasan |  |
| per Shankar Srinivasan | |
| Partner | |
| Membership No.: 213271 | |
| UDIN: 23213271BGSEFB8138 | |
|
Place: Hyderabad Date: January 25, 2023 |
|
Dr. Reddy’s Laboratories Ltd. 8-2-337, Road No. 3, Banjara Hills, Hyderabad - 500 034, Telangana, CIN : L85195TG1984PLC004507
Tel :+91 40 4900 2900 Fax :+91 40 4900 2999 Email :mail@drreddys.com www.drreddys.com |
DR. REDDY'S LABORATORIES LIMITED
STATEMENT OF UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31 DECEMBER 2022
| All amounts in Indian Rupees millions | ||||||||||||||||||||||||||||
| Quarter ended | Nine months ended | Year ended | ||||||||||||||||||||||||||
| Sl. . | 31.12.2022 | 30.09.2022 | 31.12.2021 | 31.12.2022 | 31.12.2021 | 31.03.2022 | ||||||||||||||||||||||
| No. | Particulars | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||||||||
| 1 | Revenue from operations | |||||||||||||||||||||||||||
| a) Net sales/income from operations | 66,353 | 61,632 | 51,031 | 1,76,165 | 1,54,460 | 2,05,144 | ||||||||||||||||||||||
| b) License fees and service income | 1,346 | 1,425 | 2,166 | 6,745 | 5,563 | 9,247 | ||||||||||||||||||||||
| c) Other operating income | 199 | 261 | 186 | 635 | 680 | 1,061 | ||||||||||||||||||||||
| Total revenue from operations | 67,898 | 63,318 | 53,383 | 1,83,545 | 1,60,703 | 2,15,452 | ||||||||||||||||||||||
| 2 | Other income | 587 | 408 | 558 | 9,170 | 3,692 | 4,844 | |||||||||||||||||||||
| 3 | Total income (1 + 2) | 68,485 | 63,726 | 53,941 | 1,92,715 | 1,64,395 | 2,20,296 | |||||||||||||||||||||
| 4 | Expenses | |||||||||||||||||||||||||||
| a) Cost of materials consumed | 12,891 | 6,688 | 7,605 | 31,470 | 26,976 | 43,124 | ||||||||||||||||||||||
| b) Purchase of stock-in-trade | 9,160 | 8,089 | 10,819 | 26,004 | 30,868 | 34,837 | ||||||||||||||||||||||
| c) Changes in inventories of finished goods, work-in-progress and stock-in-trade | (2,037 | ) | 3,693 | (277 | ) | 123 | (2,400 | ) | (3,539 | ) | ||||||||||||||||||
| d) Employee benefits expense | 11,732 | 11,517 | 9,563 | 33,706 | 29,132 | 38,858 | ||||||||||||||||||||||
| e) Depreciation and amortisation expense | 3,237 | 3,092 | 2,942 | 9,347 | 8,722 | 11,652 | ||||||||||||||||||||||
| f) Impairment of non-current assets | 134 | 25 | 47 | 159 | 1,885 | 9,304 | ||||||||||||||||||||||
| g) Finance costs | 418 | 309 | 216 | 1,074 | 643 | 958 | ||||||||||||||||||||||
| h) Selling and other expenses | 16,633 | 14,317 | 13,469 | 43,933 | 41,142 | 55,191 | ||||||||||||||||||||||
| Total expenses | 52,168 | 47,730 | 44,384 | 1,45,816 | 1,36,968 | 1,90,385 | ||||||||||||||||||||||
| 5 | Profit before tax and before share of equity accounted investees(3 - 4) | 16,317 | 15,996 | 9,557 | 46,899 | 27,427 | 29,911 | |||||||||||||||||||||
| 6 | Share of profit of equity accounted investees, net of tax | 60 | 140 | 185 | 294 | 598 | 703 | |||||||||||||||||||||
| 7 | Profit before tax (5+6) | 16,377 | 16,136 | 9,742 | 47,193 | 28,025 | 30,614 | |||||||||||||||||||||
| 8 | Tax expense/(benefit): | |||||||||||||||||||||||||||
| a) Current tax | 3,096 | 3,674 | 1,914 | 3,865 | 4,949 | 11,013 | ||||||||||||||||||||||
| b) Deferred tax | 842 | 1,320 | 735 | 7,857 | 2,221 | (2,224 | ) | |||||||||||||||||||||
| 9 | Net profit after taxes and share of profit of associates (7 - 8) | 12,439 | 11,142 | 7,093 | 35,471 | 20,855 | 21,825 | |||||||||||||||||||||
| - | ||||||||||||||||||||||||||||
| 10 | Other comprehensive income | |||||||||||||||||||||||||||
| a) (i) Items that will not be reclassified subsequently to profit or loss | (69 | ) | (112 | ) | (1,243 | ) | (743 | ) | (2,587 | ) | (3,568 | ) | ||||||||||||||||
| (ii) Income tax relating to items that will not be reclassified to profit or loss | (31 | ) | - | - | (31 | ) | 293 | 305 | ||||||||||||||||||||
| b) (i) Items that will be reclassified subsequently to profit or loss | 2,404 | (189 | ) | 62 | (920 | ) | (143 | ) | 653 | |||||||||||||||||||
| (ii) Income tax relating to items that will be reclassified to profit or loss | (600 | ) | (320 | ) | (57 | ) | 648 | 39 | (288 | ) | ||||||||||||||||||
| Total other comprehensive income | 1,704 | (621 | ) | (1,238 | ) | (1,046 | ) | (2,398 | ) | (2,898 | ) | |||||||||||||||||
| 11 | Total comprehensive income (9 + 10) | 14,143 | 10,521 | 5,855 | 34,425 | 18,457 | 18,927 | |||||||||||||||||||||
| 12 | Paid-up equity share capital (face value Rs. 5/- each) | 833 | 832 | 832 | 833 | 832 | 832 | |||||||||||||||||||||
| 13 | Other equity | 1,91,292 | ||||||||||||||||||||||||||
| 14 | Earnings per equity share (face value Rs. 5/- each) | |||||||||||||||||||||||||||
| Basic | 74.91 | 67.13 | 42.75 | 213.68 | 125.74 | 131.57 | ||||||||||||||||||||||
| Diluted | 74.76 | 66.98 | 42.65 | 213.23 | 125.43 | 131.21 | ||||||||||||||||||||||
| (Not annualised) | (Not annualised) | (Not annualised) | (Not annualised) | (Not annualised) | ||||||||||||||||||||||||
See accompanying notes to the financial results
|
|
DR. REDDY'S LABORATORIES LIMITED
| Segment information | All amounts in Indian Rupees millions | |||||||||||||||||||||||||
| Quarter ended | Nine months ended | Year ended | ||||||||||||||||||||||||
| Sl. | 31.12.2022 | 30.09.2022 | 31.12.2021 | 31.12.2022 | 31.12.2021 | 31.03.2022 | ||||||||||||||||||||
| No. | Particulars | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |||||||||||||||||||
| Segment wise revenue and results: | ||||||||||||||||||||||||||
| 1 | Segment revenue : | |||||||||||||||||||||||||
| a) Pharmaceutical Services and Active Ingredients | 10,304 | 8,230 | 9,016 | 26,797 | 28,183 | 37,499 | ||||||||||||||||||||
| b) Global Generics | 59,276 | 56,009 | 44,565 | 1,59,656 | 1,33,288 | 1,79,647 | ||||||||||||||||||||
| c) Others | 702 | 755 | 1,418 | 2,195 | 3,788 | 4,561 | ||||||||||||||||||||
| Total | 70,282 | 64,994 | 54,999 | 1,88,648 | 1,65,259 | 2,21,707 | ||||||||||||||||||||
| Less: Inter-segment revenue | 2,384 | 1,676 | 1,616 | 5,103 | 4,556 | 6,255 | ||||||||||||||||||||
| Total revenue from operations | 67,898 | 63,318 | 53,383 | 1,83,545 | 1,60,703 | 2,15,452 | ||||||||||||||||||||
| 2 | Segment results: | |||||||||||||||||||||||||
| Gross profit from each segment | ||||||||||||||||||||||||||
| a) Pharmaceutical Services and Active Ingredients | 1,413 | 235 | 1,641 | 2,763 | 5,444 | 6,834 | ||||||||||||||||||||
| b) Global Generics | 38,254 | 36,568 | 25,732 | 99,221 | 76,440 | 1,03,270 | ||||||||||||||||||||
| c) Others | 430 | 447 | 1,243 | 1,374 | 3,223 | 3,749 | ||||||||||||||||||||
| Total | 40,097 | 37,250 | 28,616 | 1,03,358 | 85,107 | 1,13,853 | ||||||||||||||||||||
| Less: Selling and other un-allocable expenditure/(income), net | 23,721 | 21,114 | 18,874 | 56,166 | 57,082 | 83,239 | ||||||||||||||||||||
| Total profit before tax | 16,377 | 16,136 | 9,742 | 47,193 | 28,025 | 30,614 | ||||||||||||||||||||
Global Generics includes operations of Biologics business. Inter-segment revenue represents sales from Pharmaceutical Services and Active Ingredients to Global Generics and Others at cost.
Segmental capital employed
As certain assets of the Company including manufacturing facilities, development facilities and treasury assets and liabilities are often deployed interchangeably across segments, it is impractical to allocate these assets and liabilities to each segment. Hence, the details for capital employed have not been disclosed in the above table.
Notes:
| 1 | These results have been prepared in accordance with the Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013, read with the Companies (Indian Accounting Standards) Rules 2015 as amended. |
| 2 | During the quarter and nine month ended 31 December 2022, an amount of Rs. 435 million and Rs. 2,806 million respectively representing government grants has been accounted for as a reduction from cost of material consumed. |
| 3 | Included in “Selling and other expenses” for the quarter ended 31 December 2022, is an amount of Rs. 991 million representing the Loss on sale of Assets, pursuant to agreement dated 16 December 2022 with Delpharm Development Leiden B.V (Delpharm) for transfer of its certain assets, liabilities and employees at its site at Leiden, Netherlands.This transaction pertains to Company’s Global Generics segment. |
| 4 | On 23 June 2022, the Company entered into a Settlement Agreement with Indivior Inc., Indivior UK Limited and Aquestive Therapeutics, Inc. Pursuant to the agreement, the Company will receive payments totaling U.S.$ 72 million by 31 March 2024. The said agreement resolves all claims between the parties relating to the Company’s generic buprenorphine and naloxone sublingual film including Indivior’s and Aquestive’s patent infringement allegations and the Company’s antitrust counterclaims. On 28 June 2022 the U.S. Court dismissed all claims and counterclaims pending in the case with prejudice, pursuant to a joint stipulation of dismissal filed by the parties. The Company recognised the present value of the amount receivable at Rs.5,638 million (U.S.$ 71.39 million discounted to present value) on the date of the settlement as ‘Other income’ in the consolidated financial results of the Company. The aforesaid transaction pertain to Company’s Global Generics segment. |
| 5 | As the revenues and gross profits of the Proprietary Products segment are considerably lower than the quantitative thresholds mentioned in IND AS 108, “Operating Segments”, the Company believes that Proprietary Products segment no longer qualifies to be a reportable segment and consequently, effective 1 April 2022, the Company included the financial information relating to Proprietary Products Segment in “Others”. The corresponding information relating to Proprietary Products segment for earlier periods has been restated to reflect the aforementioned change. |
| 6 | During the quarter ended 30 June 2022, pursuant to a change in the U.S. Income tax regulations relating to the timing of recognition of certain sales based accruals, the Company recognised a reduction in current tax liability of Rs. 4,768 million with a corresponding increase in the deferred tax liability. |
| 7 | License fee and service income for the year ended 31 March 2022 includes: |
a) Rs. 1,774 million towards the sale of territorial rights relating to two of the Company’s anti-bacterial brands (Ciprolet® and Levolet®) in Russia and CIS region to Alium JSC;
b) Rs. 390 million towards the sale of two of the Company’s Brands (Daffy bar and Combihale) in India to Mankind Pharma Limited;
c) Rs. 1,084 million towards sale of its U.S. and Canada territory rights for ELYXYBTM (celecoxib oral solution) 25 mg/mL, to BioDelivery Sciences International, Inc. The aforesaid transactions pertain to Company’s Global Generics and Others segment.
| 8 | During the year ended 31 March 2022, there were significant changes to the market conditions for certain of the products forming part of Company’s Global Generics and Others segment. The changes include, decrease in the market potential of products, and increased competition leading to lower volumes and revenues not being in line with projections. Due to these adverse market developments, the Company recorded an impairment loss of Rs. 9,304 million on various non-current assets. The said impairment loss includes: |
a) Rs. 4,337 million relating to PPC-06 (Tepilamide Fumarate Extended Release Tablets) intangible assets under development;
b) Rs. 2,955 million pertaining to Shreveport Cash Generating Unit (“CGU”) comprising of Property, plant and equipment and Goodwill;
c) Rs. 174 million relating to other intang©ble assets.
|
|
DR. REDDY'S LABORATORIES LIMITED
| 9 | On 14 June 2021, the Company received the arbitration decision and award in favour of Hatchtech Pty Limited regarding the Civil Litigation and Arbitration relating to the acquisition of the product Xeglyze®. The award required the Company to pay an amount of Rs. 3,401 million (U.S.$ 46.25 million) towards milestone payments, interest, and fees. As the Company was carrying only Rs. 1,471 million (U.S.$ 20 million) as the provision towards this litigation, an additional expense of Rs. 1,930 million (U.S.$ 26.25 million) [Rs. 1,838 million (U.S.$ 25 million) as “Impairment of non-current assets” and Rs. 92 million (U.S.$ 1.25 million) as “selling and other expenses”] was recognised during the nine months ended 31 December 2021. The said expense forms part of the Company’s Others segment. |
| 10 | The Company has considered the impact of recent tax regulations and developments, including updates to its estimate on the impact of adoption of the Taxation Laws (Amendment) Act 2019, in determining its “Tax expense/(benefit)” for the quarter and nine months ended 31 December 2022. |
| 11 | The Company received an anonymous complaint in September 2020, alleging that healthcare professionals in Ukraine and potentially in other countries were provided with improper payments by or on behalf of the Company in violation of U.S. anti-corruption laws, specifically the U.S. Foreign Corrupt Practices Act. The Company disclosed the matter to the U.S. Department of Justice (“DOJ”), Securities and Exchange Commission (“SEC”) and Securities Exchange Board of India. The Company engaged a U.S. law firm to conduct the investigation at the instruction of a committee of the Company’s Board of Directors. On 6 July 2021 the Company received a subpoena from the SEC for the production of related documents, which were provided to the SEC. The Company made presentations to the SEC and the DOJ in relation to the investigation with respect to certain countries during the current and previous fiscal year. The Company also made a presentation to the SEC and the DOJ in relation to its Global Compliance Framework, including the ongoing enhancement initiatives, during the nine months ended 31 December 2022. The Company is complying with its listing obligations as it relates to updating the regulatory agencies. While the findings from the aforesaid investigations could result in government or regulatory enforcement actions against the Company in the United States and/or foreign jurisdictions, which can lead to civil and criminal sanctions under relevant laws, the outcomes including liabilities are not reasonably ascertainable at this time. |
| 12 | The Company considered the uncertainties relating to the military conflict between Russia and Ukraine, in assessing the recoverability of receivables, goodwill, intangible assets, investments and other assets. For this purpose, the Company considered internal and external sources of information up to the date of approval of these financial results. Based on its judgments, estimates and assumptions, including sensitivity analysis, the Company expects to fully recover the carrying amount of receivables, goodwill, intangible assets, investments and other assets. The Company will continue to closely monitor any material changes to future economic conditions. |
| 13 | The unaudited results were reviewed by the Audit Committee of the Board and approved by the Board of Directors of the Company at their meeting held on 25 January 2023. |
| 14 | The results for the quarter and nine months ended 31 December 2022 were subject to a “Limited Review” by the Statutory Auditors of the Company. An unqualified report has been issued by them thereon. |
Place: Hyderabad Date: 25 January 2023
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By order of the Board For Dr. Reddy's Laboratories Limited
G V Prasad Co-Chairman & Managing Director |
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S.R. Batliboi & Associates LLP Chartered Accountants |
THE SKYVIEW 10 18th Floor, "NORTH LOBBY" Survey No. 83/1, Raidurgam Hyderabad – 500 032, India Tel: +91 40 6141 6000 |
Independent Auditor’s Review Report on the Quarterly and Year to Date Unaudited Standalone Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended
Review Report to
The Board of Directors
Dr. Reddy’s Laboratories Limited
| 1. | We have reviewed the accompanying statement of unaudited standalone financial results of Dr. Reddy’s Laboratories Limited (the “Company”) for the quarter and nine month ended December 31, 2022 (the “Statement”) attached herewith, being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the “Listing Regulations”). |
| 2. | The Company’s Management is responsible for the preparation of the Statement in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, (Ind AS 34) “Interim Financial Reporting” prescribed under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. The Statement has been approved by the Company’s Board of Directors. Our responsibility is to express a conclusion on the Statement based on our review. |
| 3. | We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. |
| 4. | Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standards (‘Ind AS’) specified under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement. |
For S.R. BATLIBOI & ASSOCIATES LLP
Chartered Accountants
ICAI Firm registration number: 101049W/E300004
| /s/ Shankar Srinivasan | |
|
per Shankar Srinivasan Partner Membership No.: 213271
UDIN: 23213271BGSEFC3320 |
Hyderabad
January 25, 2023
S.R. Batliboi & Associates LLP, a Limited Liability Partnership with LLP Identity No. AAB-4295
Regd. Office: 22, Camac Street, Block ‘B’, 3rd Floor, Kolkata-700 016
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Dr. Reddy’s Laboratories Ltd. 8-2-337, Road No. 3, Banjara Hills, Hyderabad - 500 034, Telangana, CIN : L85195TG1984PLC004507
Tel :+91 40 4900 2900 Fax :+91 40 4900 2999 Email :mail@drreddys.com www.drreddys.com |
DR. REDDY'S LABORATORIES LIMITED
STATEMENT OF UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31 DECEMBER 2022
| All amounts in Indian Rupees millions | ||||||||||||||||||||||||||
| Quarter ended | Nine months ended | Year ended | ||||||||||||||||||||||||
| 31.12.2022 | 30.09.2022 | 31.12.2021 | 31.12.2022 | 31.12.2021 | 31.03.2022 | |||||||||||||||||||||
| Sl. No. | Particulars | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |||||||||||||||||||
| 1 | Revenue from operations | |||||||||||||||||||||||||
| a) Net sales / income from operations | 38,624 | 48,475 | 34,303 | 1,20,498 | 1,05,035 | 1,38,864 | ||||||||||||||||||||
| b) License fees and service income | 172 | 186 | 335 | 3,115 | 1,799 | 4,289 | ||||||||||||||||||||
| c) Other operating income | 180 | 142 | 158 | 472 | 531 | 899 | ||||||||||||||||||||
| Total revenue from operations | 38,976 | 48,803 | 34,796 | 1,24,085 | 1,07,365 | 1,44,052 | ||||||||||||||||||||
| 2 | Other income | 514 | 1,180 | 630 | 5,343 | 3,673 | 4,820 | |||||||||||||||||||
| Total income (1 + 2) | 39,490 | 49,983 | 35,426 | 1,29,428 | 1,11,038 | 1,48,872 | ||||||||||||||||||||
| 3 | Expenses | |||||||||||||||||||||||||
| a) Cost of materials consumed | 8,659 | 6,367 | 5,078 | 23,073 | 20,517 | 33,784 | ||||||||||||||||||||
| b) Purchase of stock-in-trade | 4,874 | 4,391 | 7,538 | 14,101 | 20,335 | 20,571 | ||||||||||||||||||||
| c) Changes in inventories of finished goods, work-in-progress and stock-in-trade | (1,281 | ) | 1,336 | (566 | ) | 227 | (3,339 | ) | (3,896 | ) | ||||||||||||||||
| d) Employee benefits expense | 7,084 | 7,101 | 6,040 | 20,675 | 18,257 | 24,346 | ||||||||||||||||||||
| e) Depreciation and amortisation expense | 2,388 | 2,262 | 2,054 | 6,865 | 6,091 | 8,143 | ||||||||||||||||||||
| f) Impairment of non-current assets | 10 | - | - | 10 | - | 98 | ||||||||||||||||||||
| g) Finance costs | 28 | 17 | 77 | 143 | 253 | 380 | ||||||||||||||||||||
| h) Selling and other expenses | 12,879 | 11,580 | 10,566 | 35,040 | 32,353 | 43,208 | ||||||||||||||||||||
| Total expenses | 34,641 | 33,054 | 30,787 | 1,00,134 | 94,467 | 1,26,634 | ||||||||||||||||||||
| 4 | Profit before tax (1 + 2 - 3) | 4,849 | 16,929 | 4,639 | 29,294 | 16,571 | 22,238 | |||||||||||||||||||
| 5 | Tax expense / (benefit) | |||||||||||||||||||||||||
| a) Current tax | 1,988 | 2,976 | 812 | 6,322 | 2,952 | 3,926 | ||||||||||||||||||||
| b) Deferred tax | (385 | ) | 2,790 | 416 | 3,568 | 1,584 | 2,080 | |||||||||||||||||||
| 6 | Net profit for the period / year (4 - 5) | 3,246 | 11,163 | 3,411 | 19,404 | 12,035 | 16,232 | |||||||||||||||||||
| 7 | Other comprehensive income | |||||||||||||||||||||||||
| a) (i) Items that will not be reclassified subsequently to profit or loss | 2 | 2 | - | 3 | 2 | (45 | ) | |||||||||||||||||||
| (ii) Income tax relating to items that will not be reclassified to profit or loss | (31 | ) | - | - | (31 | ) | - | 17 | ||||||||||||||||||
| b) (i) Items that will be reclassified subsequently to profit or loss | 1,296 | 912 | 201 | (2,278 | ) | (123 | ) | 832 | ||||||||||||||||||
| (ii) Income tax relating to items that will be reclassified to profit or loss | (551 | ) | (320 | ) | (69 | ) | 697 | 44 | (291 | ) | ||||||||||||||||
| Total other comprehensive income | 716 | 594 | 132 | (1,609 | ) | (77 | ) | 513 | ||||||||||||||||||
| 8 | Total comprehensive income (6 + 7) | 3,962 | 11,757 | 3,543 | 17,795 | 11,958 | 16,745 | |||||||||||||||||||
| 9 | Paid-up equity share capital (face value Rs. 5/- each) | 833 | 832 | 832 | 833 | 832 | 832 | |||||||||||||||||||
| 10 | Other equity | 1,82,530 | ||||||||||||||||||||||||
| 11 | Earnings per equity share (face value Rs. 5/- each) | |||||||||||||||||||||||||
| Basic | 19.54 | 67.25 | 20.55 | 116.88 | 72.56 | 97.85 | ||||||||||||||||||||
| Diluted | 19.50 | 67.10 | 20.51 | 116.63 | 72.38 | 97.58 | ||||||||||||||||||||
| (Not annualised) | (Not annualised) | (Not annualised) | (Not annualised) | (Not annualised) | ||||||||||||||||||||||
See accompanying notes to the financial results.
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| Segment information | All amounts in Indian Rupees millions | |||||||||||||||||||||||||
| Quarter ended | Nine months ended | Year ended | ||||||||||||||||||||||||
| 31.12.2022 | 30.09.2022 | 31.12.2021 | 31.12.2022 | 31.12.2021 | 31.03.2022 | |||||||||||||||||||||
| Sl. No. | Particulars | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |||||||||||||||||||
| Segment wise revenue and results | ||||||||||||||||||||||||||
| 1 | Segment revenue | |||||||||||||||||||||||||
| a) Pharmaceutical Services and Active Ingredients | 6,357 | 6,452 | 7,305 | 18,785 | 23,786 | 31,718 | ||||||||||||||||||||
| b) Global Generics | 34,298 | 43,829 | 28,997 | 1,09,348 | 86,744 | 1,16,999 | ||||||||||||||||||||
| c) Others | 110 | 106 | 110 | 368 | 1,391 | 1,590 | ||||||||||||||||||||
| Total | 40,765 | 50,387 | 36,412 | 1,28,501 | 1,11,921 | 1,50,307 | ||||||||||||||||||||
| Less: Inter-segment revenue | 1,789 | 1,584 | 1,616 | 4,416 | 4,556 | 6,255 | ||||||||||||||||||||
| Total revenue from operations | 38,976 | 48,803 | 34,796 | 1,24,085 | 1,07,365 | 1,44,052 | ||||||||||||||||||||
| 2 | Segment results | |||||||||||||||||||||||||
| Profit / (loss) before tax and interest from each segment | ||||||||||||||||||||||||||
| a) Pharmaceutical Services and Active Ingredients | (671 | ) | (869 | ) | (226 | ) | (1,822 | ) | 706 | 384 | ||||||||||||||||
| b) Global Generics | 7,498 | 19,040 | 5,312 | 37,662 | 15,927 | 21,871 | ||||||||||||||||||||
| c) Others | (97 | ) | (28 | ) | 36 | (103 | ) | 1,031 | 1,160 | |||||||||||||||||
| Total | 6,730 | 18,143 | 5,122 | 35,737 | 17,664 | 23,415 | ||||||||||||||||||||
| Less: (i) Finance costs | 28 | 17 | 77 | 143 | 253 | 380 | ||||||||||||||||||||
| (ii) Other un-allocable expenditure / (income), net | 1,853 | 1,197 | 406 | 6,300 | 840 | 797 | ||||||||||||||||||||
| Total profit before tax | 4,849 | 16,929 | 4,639 | 29,294 | 16,571 | 22,238 | ||||||||||||||||||||
Global Generics includes operations of Biologics business. Inter-segment revenue represents sale from Pharmaceutical Services and Active Ingredients to Global Generics at cost.
Segmental capital employed
As certain assets of the Company including manufacturing facilities, development facilities and treasury assets and liabilities are often deployed interchangeably across segments, it is impractical to allocate these assets and liabilities to each segment. Hence, the details for capital employed have not been disclosed in the above table.
Notes:
| 1 | These results have been prepared in accordance with the Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013, read with the Companies (Indian Accounting Standards) Rules 2015 as amended. | |
| 2 | During the quarter and nine months ended 31 December 2022, an amount of Rs. 435 million and Rs. 2,806 million respectively, representing government grants has been accounted for as a reduction from cost of material consumed. | |
| 3 | License fee and service income for the quarter ended 30 June 2022 includes: a. Rs. 902 million from sale of brands Z&D, Pedicloryl, Pecef and Ezinapi to J B Chemicals and Pharmaceuticals Limited; b. Rs. 1,399 million from sale of brands Styptovit-E, Finast, Finast-T and Dynapres to Torrent Pharmaceuticals Limited. These transactions pertain to Company’s Global Generics segment. | |
| 4 | As the revenues and gross profits of the Proprietary Products segment are considerably lower than the quantitative thresholds mentioned in IND AS 108, “Operating Segments”, the Company believes that Proprietary Products segment no longer qualifies to be a reportable segment and consequently, effective 1 April 2022, the Company included the financial information relating to Proprietary Products segment in “Others”. The corresponding information relating to Proprietary Products segment for earlier periods has been restated to reflect the aforementioned change. | |
| 5 | License fee and service income for the year ended 31 March 2022 includes: a) Rs. 1,774 million towards the sale of territorial rights relating to two of the Company’s anti-bacterial brands (Ciprolet® and Levolet®) in Russia and CIS region to Alium JSC; b) Rs. 390 million towards the sale of two of the Company’s Brands (Daffy bar and Combihale) in India to Mankind Pharma Limited; c) Rs. 1,084 million towards the sale of U.S. and Canada territory rights for ELYXYBTM (celecoxib oral solution) 25 mg/mL, to BioDelivery Sciences International, Inc. The aforesaid transactions pertain to Company’s Global Generics and Others segment. | |
| 6 | The Company has considered the impact of recent tax regulations and developments, including updates to its estimate on the impact of adoption of the Taxation Laws (Amendment) Act 2019, in determining its “Tax expense/(benefit)” for the quarter and nine months ended 31 December 2022. | |
| 7 | The Company received an anonymous complaint in September 2020, alleging that healthcare professionals in Ukraine and potentially in other countries were provided with improper payments by or on behalf of the Company in violation of U.S. anti-corruption laws, specifically the U.S. Foreign Corrupt Practices Act. The Company disclosed the matter to the U.S. Department of Justice (“DOJ”), Securities and Exchange Commission (“SEC”) and Securities Exchange Board of India. The Company engaged a U.S. law firm to conduct the investigation at the instruction of a committee of the Company’s Board of Directors. On 06 July 2021 the Company received a subpoena from the SEC for the production of related documents, which were provided to the SEC. The Company made presentations to the SEC and the DOJ in relation to the investigation with respect to certain countries during the current and previous fiscal year. The Company also made a presentation to the SEC and the DOJ in relation to its Global Compliance Framework, including the ongoing enhancement initiatives, during the nine months ended 31 December 2022. The Company is complying with its listing obligations as it relates to updating the regulatory agencies. While the findings from the aforesaid investigations could result in government or regulatory enforcement actions against the Company in the United States and/or foreign jurisdictions, which can lead to civil and criminal sanctions under relevant laws, the outcomes including liabilities are not reasonably ascertainable at this time. | |
| 8 | The Company considered the uncertainties relating to the military conflict between Russia and Ukraine, in assessing the recoverability of receivables, goodwill, intangible assets, investments and other assets. For this purpose, the Company considered internal and external sources of information up to the date of approval of these financial results. Based on its judgments, estimates and assumptions, including sensitivity analysis, the Company expects to fully recover the carrying amount of receivables, goodwill, intangible assets, investments and other assets. The Company will continue to closely monitor any material changes to future economic conditions. | |
| 9 | The unaudited results were reviewed by the Audit Committee of the Board and approved by the Board of Directors of the Company at their meeting held on 25 January 2023. | |
| 10 | The results for the quarter and nine months ended 31 December 2022 presented were subjected to a “Limited review” by the Statutory Auditors of the Company. An unqualified report was issued by them thereon. |
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Place: Hyderabad Date: 25 January 2023 |
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By order of the Board For Dr. Reddy's Laboratories Limited
G V Prasad Co-Chairman & Managing Director
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Exhibit 99.2
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Dr. Reddy’s Laboratories Ltd. 8-2-337, Road No. 3, Banjara Hills, Hyderabad - 500 034, Telangana, CIN : L85195TG1984PLC004507
Tel :+91 40 4900 2900 Fax :+91 40 4900 2999 Email :mail@drreddys.com www.drreddys.com |
January 25, 2023
National Stock Exchange of India Ltd. (Scrip Code: DRREDDY-EQ)
BSE Limited (Scrip Code: 500124)
New York Stock Exchange Inc. (Stock Code: RDY)
NSE IFSC Ltd (Stock Code: DRREDDY)
Dear Sir/Madam,
| Sub: | Disclosure under Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 |
This is to inform you that the Nomination, Governance and Compensation Committee of the Board of Directors of the Company at its meeting held on January 24, 2023, has approved the following grant of Stock Options to the eligible employees under the Employees Stock Option Schemes of the Company:
| Sl. No. |
Type of Option(s) |
Number of Options granted |
Value | Exercise Price per share |
ESOP Scheme | |||||
| 1 | Indian Stock Options | *3,234 | Fair Market Value | Rs. 4,338/- | Dr. Reddy’s Stock Option Scheme, 2018 |
*These options shall vest equally in 4 years
This is for your information and records.
Thanking you.
Yours faithfully,
For Dr. Reddy’s Laboratories Limited
| /s/ K Randhir Singh | |
| K Randhir Singh | |
| Company Secretary, Compliance Officer & Head-CSR |