Dr Reddys Laboratories Ltd 6-K, filed Nov 5, 2024
Dr Reddys Laboratories Ltd (RDY)
About this 6-K
Dr Reddys Laboratories Ltd filed this 6-K on November 5, 2024.
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
Novemeber 2024
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): ______
| Yes ¨ | No x |
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): ______
| Yes ¨ | No x |
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-________.
DISCLOSURE OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION
We hereby furnish the United States Securities and Exchange Commission with copies of the following information about our public disclosures regarding our results of operations and financial condition for the quarter and half year ended September 30, 2024.
On November 5, 2024, we announced our results of operations for the quarter and half year ended September 30, 2024. We issued a press release announcing our results under International Financial Reporting Standards (“IFRS”), IFRS Unaudited Consolidated Financial Results, Ind AS Unaudited Consolidated Financial Results with Limited Review report and Ind AS Unaudited Standalone Financial Results with Limited Review report for the quarter and half year ended September 30, 2024, a copy of which is attached to this Form 6-K as Exhibit 99.1 , 99.2 , 99.3 and 99.4 respectively.
We have also made available to the public on our web site, www.drreddys.com, the following: IFRS Unaudited Consolidated Financial Results, Ind AS Unaudited Consolidated Financial Results and Ind AS Unaudited Standalone Financial Results for the quarter and half year ended September 30, 2024.
Exhibits
| 2 |
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: November 5, 2024 | By: | /s/ K Randhir Singh | |
| Name: | K Randhir Singh | ||
| Title: | Company Secretary & Compliance Officer | ||
| 3 |
Exhibit 99.1
 |
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 |
November 5, 2024
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 and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”) – Board meeting outcome
We would like to inform that the Board of Directors of the Company at its meeting held on November 5, 2024, has inter alia approved the following:
| 1. | Financial results |
| a. | Unaudited Consolidated Financial Results of the Company and its subsidiaries for the quarter and half-year ended September 30, 2024, prepared in compliance with International Financial Reporting Standards (IFRS) as issued by International Accounting Standards Board (IASB); |
| b. | Press Release on Unaudited Financial Results of the Company for the above period. |
| c. | Unaudited Consolidated Financial Results of the Company and its subsidiaries for the quarter and half-year ended September 30, 2024, as per Indian Accounting Standards. |
| d. | Unaudited Standalone Financial Results of the Company for the quarter and half-year ended September 30, 2024, as per Indian Accounting Standards. |
Pursuant to Regulation 33 of the SEBI Listing Regulations, the Limited Review Reports of the Statutory Auditors on the Unaudited Standalone and Consolidated Financial Results as mentioned at serial nos. (c) & (d) are also enclosed.
| 2. | Investment in step-down wholly owned subsidiary company |
Approval of the fund infusion by way of investment in equity shares of Dr. Reddy’s Laboratories LLC, Russia, a step-down wholly-owned subsidiary, upto an amount of Rs.600 Crores. The fund will be used for working capital requirements.
The requisite details as required under SEBI Listing Regulations, read with the SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023, will be disclosed to the stock exchange(s) after approval of the Board of the said step-down wholly-owned subsidiary.
The Board Meeting commenced at 9:00 a.m. IST and concluded at 3:45 p.m. IST.
This is for your information and record.
Thanking you.
Yours faithfully,
For Dr. Reddy’s Laboratories Limited
K Randhir Singh
Company Secretary, Compliance Officer & Head-CSR
Encl: as above
| CONTACT | |||
| DR. REDDY'S LABORATORIES LTD. | Investor relationS | Media relationS | |
8-2-337, Road No. 3, Banjara Hills, Hyderabad - 500034. Telangana, India. |
Richa Periwal AISHWARYA SITHARAM |
richaperiwal@drreddys.com aishwaryasitharam@drreddys.com |
USHA IYER ushaiyer@drreddys.com |
Dr. Reddy’s Q2 & H1FY25 Financial Results
Hyderabad, India, November 5, 2024: Dr. Reddy’s Laboratories Ltd. (BSE: 500124 | NSE: DRREDDY | NYSE: RDY | NSEIFSC: DRREDDY) today announced its consolidated financial results for the quarter and half year ended September 30, 2024. The information mentioned in this release is based on consolidated financial statements under International Financial Reporting Standards (IFRS).
| Q2FY25 | H1FY25 | |
| Revenues | ₹ 80,162 Mn [Up: 17% YoY; 4% QoQ] |
₹ 156,889 Mn [Up: 15% YoY] |
| Gross Margin | 59.6% [Q2FY24: 58.7%; Q1FY25: 60.4%] |
60.0% [H1FY24: 58.7%] |
| SG&A Expenses | ₹ 23,007 Mn [Up: 22% YoY; 1% QoQ] |
₹ 45,698 Mn [Up: 25% YoY] |
| R&D Expenses | ₹ 7,271 Mn [9.1% of Revenues] |
₹ 13,464 Mn [8.6% of Revenues] |
| EBITDA | ₹ 22,803 Mn [28.4% of Revenues] |
₹ 44,402 Mn [28.3% of Revenues] |
| Profit before Tax | ₹ 19,167 Mn [Flat YoY; Up: 2% QoQ] |
₹ 37,988 Mn [Up: 1% YoY] |
Profit after Tax before Non-Controlling Interest |
₹ 13,415 Mn [Down: 9% YoY; 4% QoQ] |
₹ 27,335 Mn [Down: 5% YoY] |
Profit after Tax attributable to Equity Holders |
₹ 12,553 Mn [Down: 15% YoY; 10% QoQ] |
₹ 26,473 Mn [Down: 8% YoY] |
Commenting on the results, Co-Chairman & MD, G V Prasad said:
“We delivered another good quarter and maintained the growth momentum across businesses. We made progress on our future growth drivers, operationalized our venture with Nestlé and completed the acquisition of Nicotinell® and related brands. We will continue to drive efficiency, strengthen our core businesses, and positively impact patient lives through science and innovation.”
| 1 |
| All amounts in millions, except EPS | All US dollar amounts based on convenience translation rate of 1 USD = ₹83.76 |
Dr. Reddy’s Laboratories Limited & Subsidiaries
Revenue Mix by Segment for the quarter
| Particulars | Q2FY25 | Q2FY24 | YoY | Q1FY25 | QoQ | |||||||||||||||
| (₹) | (₹) | Gr % | (₹) | Gr% | ||||||||||||||||
| Global Generics | 71,576 | 61,084 | 17 | 68,858 | 4 | |||||||||||||||
| North America | 37,281 | 31,775 | 17 | 38,462 | (3 | ) | ||||||||||||||
| Europe | 5,770 | 5,286 | 9 | 5,265 | 10 | |||||||||||||||
| India | 13,971 | 11,860 | 18 | 13,252 | 5 | |||||||||||||||
| Emerging Markets | 14,554 | 12,163 | 20 | 11,878 | 23 | |||||||||||||||
| Pharmaceutical Services and Active Ingredients (PSAI) | 8,407 | 7,034 | 20 | 7,657 | 10 | |||||||||||||||
| Others | 179 | 684 | (74 | ) | 212 | (16 | ) | |||||||||||||
| Total | 80,162 | 68,802 | 17 | 76,727 | 4 | |||||||||||||||
Revenue Mix by Segment for the half year
| Particulars | H1FY25 | H1FY24 | YoY | |||||||||
| (₹) | (₹) | Gr% | ||||||||||
| Global Generics | 140,434 | 121,167 | 16 | |||||||||
| North America | 75,743 | 63,776 | 19 | |||||||||
| Europe | 11,035 | 10,333 | 7 | |||||||||
| India | 27,223 | 23,342 | 17 | |||||||||
| Emerging Markets | 26,433 | 23,716 | 11 | |||||||||
| PSAI | 16,064 | 13,743 | 17 | |||||||||
| Others | 391 | 1,276 | (69 | ) | ||||||||
| Total | 156,889 | 136,186 | 15 | |||||||||
| 2 |
Consolidated Income Statement for the quarter
| Particulars | Q2FY25 | Q2FY24 | YoY | Q1FY25 | QoQ | |||||||||||||||||||||||||||
| ($) | (₹) | ($) | (₹) | Gr % | ($) | (₹) | Gr% | |||||||||||||||||||||||||
| Revenues | 957 | 80,162 | 821 | 68,802 | 17 | 916 | 76,727 | 4 | ||||||||||||||||||||||||
| Cost of Revenues | 387 | 32,393 | 339 | 28,434 | 14 | 363 | 30,383 | 7 | ||||||||||||||||||||||||
| Gross Profit | 570 | 47,769 | 482 | 40,368 | 18 | 553 | 46,344 | 3 | ||||||||||||||||||||||||
| % of Revenues | 59.6 | % | 58.7 | % | 60.4 | % | ||||||||||||||||||||||||||
| Selling, General & Administrative Expenses | 275 | 23,007 | 224 | 18,795 | 22 | 271 | 22,691 | 1 | ||||||||||||||||||||||||
| % of Revenues | 28.7 | % | 27.3 | % | 29.6 | % | ||||||||||||||||||||||||||
| Research & Development Expenses | 87 | 7,271 | 65 | 5,447 | 33 | 74 | 6,193 | 17 | ||||||||||||||||||||||||
| % of Revenues | 9.1 | % | 7.9 | % | 8.1 | % | ||||||||||||||||||||||||||
| Impairment of Non-Current Assets, net | 11 | 924 | 1 | 55 | 1580 | 0 | 5 | |||||||||||||||||||||||||
| Other (Income)/Expense, net | (12 | ) | (984 | ) | (21 | ) | (1,796 | ) | (45 | ) | (6 | ) | (470 | ) | 109 | |||||||||||||||||
| Results from Operating Activities | 210 | 17,551 | 213 | 17,867 | (2 | ) | 214 | 17,925 | (2 | ) | ||||||||||||||||||||||
| Finance (Income)/Expense, net | (19 | ) | (1,555 | ) | (15 | ) | (1,225 | ) | 27 | (10 | ) | (837 | ) | 86 | ||||||||||||||||||
| Share of Profit of Equity Accounted Investees, net of tax | (1 | ) | (61 | ) | (1 | ) | (42 | ) | 45 | (1 | ) | (59 | ) | 3 | ||||||||||||||||||
| Profit before Income Tax | 229 | 19,167 | 228 | 19,134 | 0 | 225 | 18,821 | 2 | ||||||||||||||||||||||||
| % of Revenues | 23.9 | % | 27.8 | % | 24.5 | % | ||||||||||||||||||||||||||
| Income Tax Expense | 69 | 5,752 | 52 | 4,334 | 33 | 59 | 4,901 | 17 | ||||||||||||||||||||||||
| Profit for the Period | 160 | 13,415 | 177 | 14,800 | (9 | ) | 166 | 13,920 | (4 | ) | ||||||||||||||||||||||
| % of Revenues | 16.7 | % | 21.5 | % | 18.1 | % | ||||||||||||||||||||||||||
| Attributable to Equity holders of the parent company | 150 | 12,553 | 177 | 14,800 | (15 | ) | 166 | 13,920 | (10 | ) | ||||||||||||||||||||||
| Attributable to Non-controlling interests | 10 | 862 | - | - | - | - | - | - | ||||||||||||||||||||||||
| Diluted Earnings per Share (EPS)^ | 0.18 | 15.04 | 0.21 | 17.76 | (15 | ) | 0.20 | 16.69 | (9 | ) | ||||||||||||||||||||||
| ^ | Historical numbers re-casted basis the increased number of shares post share split |
EBITDA Computation for the quarter
| Particulars | Q2FY25 | Q2FY24 | Q1FY25 | |||||||||||||||||||||
| ($) | (₹) | ($) | (₹) | ($) | (₹) | |||||||||||||||||||
| Profit before Income Tax | 229 | 19,167 | 228 | 19,134 | 225 | 18,821 | ||||||||||||||||||
| Interest (Income) / Expense, net* | (15 | ) | (1,262 | ) | (14 | ) | (1,166 | ) | (12 | ) | (1,037 | ) | ||||||||||||
| Depreciation | 31 | 2,629 | 29 | 2,437 | 30 | 2,508 | ||||||||||||||||||
| Amortization | 16 | 1,346 | 16 | 1,353 | 16 | 1,302 | ||||||||||||||||||
| Impairment | 11 | 924 | 1 | 55 | 0 | 5 | ||||||||||||||||||
| EBITDA | 272 | 22,803 | 260 | 21,813 | 258 | 21,599 | ||||||||||||||||||
| % of Revenues | 28.4 | % | 31.7 | % | 28.2 | % | ||||||||||||||||||
| * | Includes income from Investment |
| 3 |
Consolidated Income Statement for the half year
| Particulars | H1FY25 | H1FY24 | YoY | |||||||||||||||||
| ($) | (₹) | ($) | (₹) | Gr % | ||||||||||||||||
| Revenues | 1,873 | 156,889 | 1,626 | 136,186 | 15 | |||||||||||||||
| Cost of Revenues | 749 | 62,776 | 672 | 56,265 | 12 | |||||||||||||||
| Gross Profit | 1,124 | 94,113 | 954 | 79,921 | 18 | |||||||||||||||
| % of Revenues | 60.0 | % | 58.7 | % | ||||||||||||||||
| Selling, General & Administrative Expenses | 546 | 45,698 | 436 | 36,497 | 25 | |||||||||||||||
| % of Revenues | 29.1 | % | 26.8 | % | ||||||||||||||||
| Research & Development Expenses | 161 | 13,464 | 125 | 10,431 | 29 | |||||||||||||||
| % of Revenues | 8.6 | % | 7.7 | % | ||||||||||||||||
| Impairment of Non-Current Assets, net | 11 | 929 | 1 | 66 | 1308 | |||||||||||||||
| Other (Income)/Expense, net | (17 | ) | (1,454 | ) | (31 | ) | (2,576 | ) | (44 | ) | ||||||||||
| Results from Operating Activities | 424 | 35,476 | 424 | 35,503 | (0 | ) | ||||||||||||||
| Finance (Income)/Expense, net | (29 | ) | (2,392 | ) | (24 | ) | (2,009 | ) | 19 | |||||||||||
| Share of Profit of Equity Accounted Investees, net of tax | (1 | ) | (120 | ) | (1 | ) | (85 | ) | 41 | |||||||||||
| Profit before Income Tax | 454 | 37,988 | 449 | 37,597 | 1 | |||||||||||||||
| % of Revenues | 24.2 | % | 27.6 | % | ||||||||||||||||
| Income Tax Expense | 127 | 10,653 | 105 | 8,772 | 21 | |||||||||||||||
| Profit for the Period | 326 | 27,335 | 344 | 28,825 | (5 | ) | ||||||||||||||
| % of Revenues | 17.4 | % | 21.2 | % | ||||||||||||||||
| Attributable to Equity holders of the parent company | 316 | 26,473 | 344 | 28,825 | (8 | ) | ||||||||||||||
| Attributable to Non-controlling interests | 10 | 862 | - | - | - | |||||||||||||||
| Diluted Earnings per Share (EPS)^ | 0.39 | 31.73 | 0.41 | 34.58 | (8 | ) | ||||||||||||||
| ^ | Historical numbers re-casted basis the increased number of shares post share split |
EBITDA Computation for the half year
| Particulars | H1FY25 | H1FY24 | ||||||||||||||
| ($) | (₹) | ($) | (₹) | |||||||||||||
| Profit before Income Tax | 454 | 37,988 | 449 | 37,597 | ||||||||||||
| Interest (Income) / Expense, net* | (27 | ) | (2,300 | ) | (22 | ) | (1,851 | ) | ||||||||
| Depreciation | 61 | 5,137 | 56 | 4,718 | ||||||||||||
| Amortization | 32 | 2,648 | 32 | 2,656 | ||||||||||||
| Impairment | 11 | 929 | 1 | 66 | ||||||||||||
| EBITDA | 530 | 44,402 | 516 | 43,186 | ||||||||||||
| % of Revenues | 28.3 | % | 31.7 | % | ||||||||||||
Key Balance Sheet Items
| Particulars | As on 30th Sep 2024 | As on 30th Jun 2024 | As on 30th Sep 2023 | |||||||||||||||||||||
| ($) | (₹) | ($) | (₹) | ($) | (₹) | |||||||||||||||||||
| Cash and Cash Equivalents and Other Investments | 767 | 64,274 | 1,141 | 95,599 | 833 | 69,784 | ||||||||||||||||||
| Trade Receivables | 1,008 | 84,398 | 968 | 81,088 | 832 | 69,722 | ||||||||||||||||||
| Inventories | 860 | 72,039 | 819 | 68,568 | 676 | 56,592 | ||||||||||||||||||
| Property, Plant, and Equipment | 1,035 | 86,693 | 959 | 80,343 | 841 | 70,478 | ||||||||||||||||||
| Goodwill and Other Intangible Assets | 1,240 | 103,892 | 494 | 41,374 | 493 | 41,278 | ||||||||||||||||||
| Loans and Borrowings (Current & Non-Current) | 580 | 48,540 | 366 | 30,675 | 158 | 13,230 | ||||||||||||||||||
| Trade Payables | 427 | 35,776 | 407 | 34,109 | 364 | 30,485 | ||||||||||||||||||
| Equity | 3,692 | 309,283 | 3,518 | 294,627 | 3,022 | 253,086 | ||||||||||||||||||
| 4 |
Key Business Highlights [for Q2FY25]
| · | Completed acquisition of the Nicotine Replacement Therapy (‘NRT’) portfolio outside of the United States and paid upfront cash consideration of GBP 458 million. |
| · | Operationalized, Dr. Reddy’s and Nestlé Health Science Limited, in August 2024 to undertake the business of nutraceutical products and supplements in India and Nepal. 49% of the shares in the subsidiary transferred to Nestlé India. |
| · | Secured Marketing Authorization from European Commission for our rituximab biosimilar, following a positive opinion from the CHMP of the European Medicines Agency. |
| · | Received approval from the USFDA for Investigational New Drug (IND) application for AUR-112, a highly differentiated potent and selective inhibitor of MALT1, being developed for treatment of lymphoid malignancies. |
| · | Entered into a non-exclusive patent licensing agreement with Takeda to commercialise Vonoprazan, a novel gastrointestinal drug, in India. |
ESG & other Updates [for Q2FY25]
| · | Recognised amongst ‘Top 15’ India's Most Sustainable Companies, 2024 by Businessworld India |
| · | Received ‘ESG Excellence Award’ 2024 in the ‘Large-cap Pharmaceuticals & Healthcare’ category by KPMG India |
| · | ‘Voluntary Action Indicated’ (VAI) classification by the United States Food and Drug Administration (USFDA) for two of our formulations manufacturing facilities in Duvvada, Visakhapatnam (FTO 7 and FTO 9), following their routine GMP inspection in May 2024 as well as our API manufacturing facility (CTO-6) in Srikakulam, Andhra Pradesh, following their GMP Inspection in June 2024. |
| · | Product-specific Pre-Approval Inspection (PAI) completed by the USFDA at our formulations manufacturing facility (FTO SEZ PU1) in Srikakulam, Andhra Pradesh in August 2024 and issued a Form 483 with three observations. The response to the observations were submitted within stipulated timelines. |
| · | Routine Good Manufacturing Practice (GMP) inspection concluded by the USFDA at our R&D centre in Bachupally, Hyderabad in September, 2024, with zero observations. |
| · | Alteration in share capital of the Company by sub-division/ split of existing equity shares of face value of ₹5 each, fully paid up, including the American Depository Shares, into 5 equity shares of ₹1 each, fully paid-up, approved by the shareholders as well as the Board of Directors of the Company. |
| 5 |
Revenue Analysis
| · | Q2FY25 consolidated revenues at ₹80.2 billion, YoY growth of 17% and sequential growth of 4%. YoY growth was primarily driven by growth in global generics revenues. QoQ growth was primarily driven by global generics revenues in Emerging Markets, India, Europe as well as PSAI. |
H1FY25 consolidated revenues at ₹156.9 billion, YoY growth of 15%. The growth was driven by strong performances in global generics in North America, India, Emerging Markets as well as PSAI.
Global Generics (GG)
| · | Q2FY25 revenues at ₹71.6 billion, YoY growth of 17% and QoQ growth of 4%. YoY growth was broad-based, driven by improved sales volumes and new product launches. Sequential growth was primarily driven by Emerging Markets and Europe. |
H1FY25 revenues at ₹140.4 billion, a YoY growth of 16%. The growth was across all markets, driven by increase in sales volumes.
North America
| · | Q2FY25 revenues at ₹37.3 billion, YoY growth of 17% and QoQ decline of 3%. YoY growth was largely on account of increase in sales volumes, partly offset by price erosion. Sequential decline was due to decrease in sales volumes. |
H1FY25 revenues at ₹75.7 billion, YoY growth of 19%. The growth was largely on account of increase in sales volumes, partially offset by price erosion.
| · | During the quarter, we launched four new products in the region, all of which were launched in the U.S. A total of 7 products were launched during the half year ended September 30, 2024. |
| · | During the quarter, we filed two new Abbreviated New Drug Applications (ANDAs) with the USFDA, taking our year-to-date ANDA filing count to three. As of September 30, 2024, 80 generic filings were pending approval from the USFDA. These comprise of 75 ANDAs and five New Drug Applications (NDAs) filed under Section 505(b)(2) route of the US Federal Food, Drug, and Cosmetic Act. Of the 75 ANDAs, 44 are Paragraph IV applications, and we believe that 22 of these have the ‘First to File’ status. |
Europe
| · | Q2FY25 revenues at ₹5.8 billion, YoY growth of 9% and QoQ growth of 10%. YoY growth was primarily on account of leveraging the portfolio to launch new products, partly offset by price erosion. QoQ growth was primarily on account of new product launches. |
| - | Germany at ₹3.2 billion, YoY growth of 21% and QoQ growth of 16%. |
| - | UK at ₹1.6 billion, YoY decline of 7% and QoQ growth of 3%. |
| - | Rest of Europe at ₹0.9 billion, YoY growth of 4% and QoQ growth of 2%. |
H1FY25 revenues at ₹11.0 billion, YoY growth of 7%. The growth was primarily on account of new product launches and momentum in base business, partly offset by price erosion.
| - | Germany at ₹6.0 billion, YoY growth of 17%. |
| - | UK at ₹3.2 billion, YoY decline of 7%. |
| - | Rest of Europe at ₹1.8 billion, YoY growth of 2%. |
| · | During the quarter, we launched 8 new products in the region, taking the year-to-date total to 20. |
| 6 |
India
| · | Q2FY25 revenues at ₹14.0 billion, YoY growth of 18% and QoQ growth of 5%. YoY growth was led by revenues from the vaccine portfolio in-licensed from Sanofi, new products launched as well as price increases. QoQ growth was on account of increase in sales volumes and price, as well as new product launches. As per IQVIA, our IPM rank was maintained at 10 for the quarter. |
| · | H1FY25 revenues at ₹27.2 billion, YoY growth of 17%. YoY growth was largely on account of revenues from in-licensed vaccine portfolio, new products launched as well as higher prices. |
| · | During the quarter, we launched three new brands in the country, taking the year-to-date total to 16. We also integrated the nutraceutical products under our subsidiary, ‘Dr. Reddy’s and Nestlé Health Science Limited’ during the quarter. |
Emerging Markets
| · | Q2FY25 revenues at ₹14.6 billion, YoY growth of 20% and QoQ growth of 23%. YoY growth is attributable to market share expansion as well as new product launches. QoQ growth was primarily due to higher volumes in the base business. |
| - | Revenues from Russia at ₹6.9 billion, YoY growth of 18% and QoQ growth of 24%. |
| - | YoY growth was due to higher sales volumes and price and new product launches, partly offset by unfavorable currency exchange rate movements. |
| - | QoQ growth was largely on account of market share expansion. |
| - | Revenues from other Commonwealth of Independent States (CIS) countries and Romania at ₹2.1 billion, YoY decline of 2% and QoQ growth of 12%. |
| - | YoY decline was primarily on account of decline in base business volumes. |
| - | QoQ growth was largely driven by higher base business volumes and increase in prices. |
| - | Revenues from Rest of World (RoW) territories at ₹5.6 billion, YoY growth of 32% YoY and QoQ growth of 26%. |
| - | YoY growth was due to momentum in base business and contribution from new products. |
| - | QoQ growth was largely driven by increase in base business volumes. |
| · | H1FY25 revenues at ₹26.4 billion, YoY growth of 11%. The growth is attributable to market share expansion and new product launches, partly offset by unfavorable forex. |
| - | Revenues from Russia at ₹12.4 billion, YoY growth of 9%. The growth was largely on account of price increases in certain brands and improved volumes, partially offset by unfavorable currency exchange rate movements. |
| - | Revenues from other CIS countries and Romania at ₹4.1 billion, YoY decline of 2%. The decline was largely on account of lower sales volumes. |
| - | Revenues from RoW territories at ₹10.0 billion, YoY growth of 22%. The growth is largely attributable to higher base business volumes and new product launches. |
| · | During the quarter, we launched 22 new products across various countries in the region, taking the year-to-date total to 39. |
| 7 |
Pharmaceutical Services and Active Ingredients (PSAI)
| · | Q2FY25 revenues at ₹8.4 billion, YoY growth of 20% and QoQ growth of 10%. YoY and QoQ growth was mainly driven by momentum in base business volumes, growth in services business and revenues from new products. |
| · | H1FY25 revenues at ₹16.1 billion, with a growth of 17% YoY. The growth was mainly driven by market share expansion, growth in services business and revenues from new products. |
| · | During the quarter, we filed 22 Drug Master Files (DMFs) globally, taking the year-to-date count to 36. |
Income Statement Highlights:
Gross Margin
| · | Q2FY25 at 59.6% (GG: 63.1%, PSAI: 30.0%), a YoY increase of 92 basis points (bps) and a QoQ decline of 81 bps. The YoY increase was on account of improvement in product mix and overhead leverage, partly offset by price erosion. On a sequential basis, the decline was primarily on account of change in mix. |
H1FY25 at 60.0% (GG: 63.9%, PSAI: 26.7%), a YoY increase by 130 bps YoY. The expansion in margin was on account of favourable product mix and productivity cost savings, partially offset by price erosion in select markets.
Selling, General & Administrative (SG&A) Expenses
| · | Q2FY25 at ₹23.0 billion, YoY increase of 22% and QoQ increase of 1%. |
We incurred one-time acquisition related costs towards NRT portfolio. Excluding the same, SG&A spend was at 28% of sales.
H1FY25 at ₹45.7 billion, YoY increase of 25%.
The increase is largely on account of higher investments in sales & marketing activities to strengthen our existing brands, new business initiatives, including scaling up ‘Over-the-Counter’ (OTC) and consumer health businesses, as well as higher personnel and freight expenses.
Research & Development (R&D) Expenses
| · | Q2FY25 at ₹7.3 billion. As % to Revenues – Q2FY25: 9.1% | Q2FY24: 7.9% | Q1FY25: 8.1%. |
H1FY25 at ₹13.5 billion. As % to Revenues – H1FY25: 8.6% | H1FY24: 7.7%.
R&D investments is related to our ongoing development efforts across generics, biosimilars, as well as our novel oncology assets.
Other Operating Income
| · | Q2FY25 at ₹1.0 billion as compared to ₹ 1.8 billion in Q2FY24. |
H1FY25 at ₹1.5 billion as compared to ₹ 2.6 billion in H1FY24.
Net Finance Income
| · | Q2FY25 at ₹1.6 billion compared to ₹1.2 billion in Q2FY24. |
H1FY25 at ₹2.4 billion as compared to ₹2.0 billion in H1FY24.
| 8 |
Profit before Tax
| · | Q2FY25 at ₹19.2 billion, flat YoY and a QoQ growth of 2%. As % to Revenues – Q2FY25: 23.9% | Q2FY24: 27.8% | Q1FY25: 24.5%. |
Excluding the impact of aforesaid mentioned one-time acquisition related cost and impairment charge on non-current assets; underlying profit before tax stood at 25.7% of revenues.
H1FY25 at ₹38.0 billion, a YoY increase of 1%. As % to Revenues – H1FY25: 24.2% | H1FY24: 27.6%.
Income Tax
| · | Q2FY25 at ₹5.8 billion. As % to PBT – Q2FY25: 30% | Q2FY24: 22.7% | Q1FY25: 26%. |
The higher tax for the quarter is on account of reversal of a Deferred Tax Asset of Rs. 0.48 billion, created in earlier period on land, pursuant to the amendment in the Finance Act 2024, resulting in withdrawal of indexation benefit. Excluding the impact of this one-time reversal, adjusted effective tax rate for the quarter on the underlying PBT is 25.9%.
H1FY25: The ETR was 28.0% as compared to 23.3% in H1FY24.
Profit after Tax before Non-Controlling Interests
| · | Q2FY25 at ₹13.4 billion, a YoY decline of 9% and a QoQ decline of 4%. As % to Revenues – Q2FY25: 16.7% | Q2FY24: 21.5% | Q1FY25: 18.1%. |
Excluding the impact of one-time acquisition related cost, impairment charge on non-current assets, one-time tax expense, underlying profit after tax before non-controlling interests stood at 18.0% of revenues.
H1FY25 at ₹27.3 billion, a YoY decline of 5%. As % to Revenues – H1FY25: 17.4% | H1FY24: 21.2%.
Non-Controlling Interests (NCI)
| · | Q2FY25 at ₹0.9 billion. This primarily includes the share in a one-time deferred tax asset recognized in the subsidiary books (Dr. Reddy’s and Nestlé Health Science Limited) on account of transfer of Dr. Reddy’s nutraceuticals business to the subsidiary and consequently allocated to NCI. |
Profit attributable to Equity Holders of Parent Company
| · | Q2FY25 at ₹12.6 billion, a YoY decline of 15% and a QoQ decline of 10%. As % to Revenues – Q2FY25: 15.7% | Q2FY24: 21.5% | Q1FY25: 18.1%. |
Excluding the impact of one-time acquisition related cost, impairment charge on non-current assets, one-time tax expense, underlying profit after tax attributable to equity holders of parent company stood at 19% of revenues.
H1FY25 at ₹26.5 billion, a YoY decline of 8%. As % to Revenues – H1FY25: 16.9% | H1FY24: 21.2%.
Diluted Earnings per Share (EPS)
| · | Q2FY25 is ₹15.04. H1FY25 is ₹31.73. |
The Earnings per share has been arrived at on the increased number of shares pursuant to the stock split of one fully paid-up equity share of Rupees five each into five fully paid-up equity share of Rupee one each.
| 9 |
Other Highlights:
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
| · | Q2FY25 at ₹22.8 billion, YoY growth of 5% and QoQ growth of 6%. As % to Revenues – Q2FY25: 28.4% | Q2FY24: 31.7% | Q1FY25: 28.2%. |
Excluding the impact of one-time acquisition related cost, EBITDA stood at 29.1% of sales.
| · | H1FY25 at ₹44.4 billion, a YoY growth of 3%. As % to Revenues – H1FY25: 28.3% | H1FY24: 31.7%. |
Others:
| · | Operating Working Capital : As on 30th September 2024 at ₹120.7 billion. |
| · | Capital Expenditure: Q2FY25 at ₹7.4 billion. |
| · | Free Cash Flow: Q2FY25 at ₹2.0 billion. |
| · | Net Cash Surplus: As on 30th September 2024 at ₹18.9 billion |
| · | Debt to Equity: As on 30th September 2024 is (0.06) |
| · | ROCE: Q2FY25 at 28.5% (Annualized) |
| 10 |
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.
| 11 |
All amounts in millions, except EPS
Reconciliation of GAAP Measures to Non-GAAP Measures
Operating Working Capital
| Particulars | As on 30th Sep 2024 | |||
| (₹) | ||||
| Inventories | 72,039 | |||
| Trade Receivables | 84,398 | |||
| Less: | ||||
| Trade Payables | 35,776 | |||
| Operating Working Capital | 120,661 | |||
Free Cash Flow
| Particulars | Three months ended 30th Sep 2024 | |||
| (₹) | ||||
| Net cash generated from operating activities | 16,538 | |||
| Less: | ||||
| Taxes | (7,223 | ) | ||
| Investments in Property, Plant & Equipment, and Intangibles | (7,279 | ) | ||
| Free Cash Flow before Acquisitions | 2,036 | |||
| Less: | ||||
| Acquisitions related Pay-out | (51,442 | ) | ||
| Free Cash Flow | (49,406 | ) | ||
Net Cash Surplus and Debt to Equity
| Particulars | As on 30th Sep 2024 | |||
| (₹) | ||||
| Cash and Cash Equivalents | 11,330 | |||
| Investments | 52,944 | |||
| Short-term Borrowings | (40,021 | ) | ||
| Long-term Borrowings, Non-Current | (7,361 | ) | ||
| Less: | ||||
| Restricted Cash Balance – Unclaimed Dividend and others | 177 | |||
| Lease liabilities (included in Long-term Borrowings, Non-Current) | (3,561 | ) | ||
| Equity Investments (Included in Investments) | 1,388 | |||
| Net Cash Surplus | 18,888 | |||
| Equity | 309,283 | |||
| Net Debt/Equity | (0.06 | ) | ||
| 12 |
Computation of Return on Capital Employed
| Particulars | As on 30th Sep 2024 | |||
| (₹) | ||||
| Profit before Tax | 19,167 | |||
| Less: | ||||
| Interest and Investment Income (Excluding forex gain/loss) | 1,262 | |||
| Earnings Before Interest and taxes [A] | 17,905 | |||
| Average Capital Employed [B] | 250,862 | |||
| Annualized Return on Capital Employed (A/B) (Ratio) | 28.5 | % | ||
Computation of Capital Employed:
| Particulars | As on | |||||||
| Sep 30, 2024 | Mar 31, 2024 | |||||||
| Property Plant and Equipment | 86,693 | 76,886 | ||||||
| Intangibles | 92,119 | 36,951 | ||||||
| Goodwill | 11,773 | 4,253 | ||||||
| Investment in Equity Accounted Associates | 4,779 | 4,196 | ||||||
| Other Current Assets | 28,217 | 22,560 | ||||||
| Other Investments | 1,200 | 1,059 | ||||||
| Other Non-Current Assets | 1,510 | 1,632 | ||||||
| Inventories | 72,039 | 63,552 | ||||||
| Trade Receivables | 84,398 | 80,298 | ||||||
| Derivative Financial Instruments | 63 | (299 | ) | |||||
| Less: | ||||||||
| Other Liabilities | 47,840 | 46,866 | ||||||
| Provisions | 5,260 | 5,444 | ||||||
| Trade payables | 35,776 | 30,919 | ||||||
| Operating Capital Employed | 293,865 | 207,859 | ||||||
| Average Capital Employed | 250,862 | |||||||
Computation of EBITDA
Refer page no. 3 & 4.
| 13 |
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: November 5, 2024
Time: 19:30 pm IST | 09:00 am ET
| Conference Joining Information |
| Option 1: Pre-register with the below link and join without waiting for the operator |
| https://services.choruscall.in/DiamondPassRegistration/register?confirmationNumber=2636091&linkSecurityString=1174e664fe |
| 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 November 11th, 2024. For play back dial in phone No: +91 22 7194 5757, and Playback Code is 03706.
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. 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, 2024. The company assumes no obligation to update any information contained herein.” The company assumes no obligation to update any information contained herein.
| 14 |
Exhibit 99.2
 |
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 half year ended 30 September 2024 prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB)
All amounts in Indian Rupees millions
| Sl. | Quarter ended | Half year ended | Year ended | |||||||||||||||||||||||
| No. | Particulars | 30.09.2024 | 30.06.2024 | 30.09.2023 | 30.09.2024 | 30.09.2023 | 31.03.2024 | |||||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |||||||||||||||||||||
| 1 | Revenues | 80,162 | 76,727 | 68,802 | 156,889 | 136,186 | 279,164 | |||||||||||||||||||
| 2 | Cost of revenues | 32,393 | 30,383 | 28,434 | 62,776 | 56,265 | 115,557 | |||||||||||||||||||
| 3 | Gross profit (1 - 2) | 47,769 | 46,344 | 40,368 | 94,113 | 79,921 | 163,607 | |||||||||||||||||||
| 4 | Selling, general and administrative expenses | 23,007 | 22,691 | 18,795 | 45,698 | 36,497 | 77,201 | |||||||||||||||||||
| 5 | Research and development expenses | 7,271 | 6,193 | 5,447 | 13,464 | 10,431 | 22,873 | |||||||||||||||||||
| 6 | Impairment of non-current assets, net | 924 | 5 | 55 | 929 | 66 | 3 | |||||||||||||||||||
| 7 | Other income, net | (984 | ) | (470 | ) | (1,796 | ) | (1,454 | ) | (2,576 | ) | (4,199 | ) | |||||||||||||
| Total operating expenses | 30,218 | 28,419 | 22,501 | 58,637 | 44,418 | 95,878 | ||||||||||||||||||||
| 8 | Results from operating activities [(3) - (4 + 5 + 6 + 7)] | 17,551 | 17,925 | 17,867 | 35,476 | 35,503 | 67,729 | |||||||||||||||||||
| Finance income | 2,312 | 1,435 | 1,578 | 3,747 | 2,733 | 5,705 | ||||||||||||||||||||
| Finance expense | (757 | ) | (598 | ) | (353 | ) | (1,355 | ) | (724 | ) | (1,711 | ) | ||||||||||||||
| 9 | Finance income, net | 1,555 | 837 | 1,225 | 2,392 | 2,009 | 3,994 | |||||||||||||||||||
| 10 | Share of profit of equity accounted investees, net of tax | 61 | 59 | 42 | 120 | 85 | 147 | |||||||||||||||||||
| 11 | Profit before tax (8 + 9 + 10) | 19,167 | 18,821 | 19,134 | 37,988 | 37,597 | 71,870 | |||||||||||||||||||
| 12 | Tax expense, net | 5,752 | 4,901 | 4,334 | 10,653 | 8,772 | 16,186 | |||||||||||||||||||
| 13 | Profit for the period/year (11 -12) | 13,415 | 13,920 | 14,800 | 27,335 | 28,825 | 55,684 | |||||||||||||||||||
| Attributable to: | ||||||||||||||||||||||||||
| Equity holders of the parent company | 12,553 | 13,920 | 14,800 | 26,473 | 28,825 | 55,684 | ||||||||||||||||||||
| Non-controlling interests | 862 | - | - | 862 | - | - | ||||||||||||||||||||
| 14 | Earnings per share attributable to equity shareholders of parent company: | |||||||||||||||||||||||||
| Basic earnings per share of Re.1/- each | 15.07 | 16.72 | 17.80 | 31.79 | 34.68 | 66.93 | ||||||||||||||||||||
| Diluted earnings per share of Re.1/- each | 15.05 | 16.70 | 17.76 | 31.74 | 34.60 | 66.81 | ||||||||||||||||||||
| (Not annualised) | (Not annualised) | (Not annualised) | (Not annualised) | (Not annualised) | ||||||||||||||||||||||
| Segment information | All amounts in Indian Rupees millions |
| Sl. | Quarter ended | Half year ended | Year ended | |||||||||||||||||||||||
| No. | Particulars | 30.09.2024 | 30.06.2024 | 30.09.2023 | 30.09.2024 | 30.09.2023 | 31.03.2024 | |||||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |||||||||||||||||||||
| Segment wise revenue and results: | ||||||||||||||||||||||||||
| 1 | Segment revenue: | |||||||||||||||||||||||||
| a) Pharmaceutical Services and Active Ingredients | 11,030 | 10,309 | 9,446 | 21,339 | 18,664 | 40,580 | ||||||||||||||||||||
| b) Global Generics | 71,576 | 68,858 | 61,084 | 140,434 | 121,167 | 245,453 | ||||||||||||||||||||
| c) Others | 179 | 212 | 684 | 391 | 1,276 | 3,910 | ||||||||||||||||||||
| Total | 82,785 | 79,379 | 71,214 | 162,164 | 141,107 | 289,943 | ||||||||||||||||||||
| Less: Inter-segment revenues | 2,623 | 2,652 | 2,412 | 5,275 | 4,921 | 10,779 | ||||||||||||||||||||
| Net revenues | 80,162 | 76,727 | 68,802 | 156,889 | 136,186 | 279,164 | ||||||||||||||||||||
| 2 | Segment results: | |||||||||||||||||||||||||
| Gross profit from each segment | ||||||||||||||||||||||||||
| a) Pharmaceutical Services and Active Ingredients | 2,518 | 1,768 | 1,254 | 4,286 | 2,263 | 6,919 | ||||||||||||||||||||
| b) Global Generics | 45,162 | 44,518 | 38,873 | 89,680 | 77,260 | 154,268 | ||||||||||||||||||||
| c) Others | 89 | 58 | 241 | 147 | 398 | 2,420 | ||||||||||||||||||||
| Total | 47,769 | 46,344 | 40,368 | 94,113 | 79,921 | 163,607 | ||||||||||||||||||||
| Less: Selling and other un-allocable expenditure, net of other income | 28,602 | 27,523 | 21,234 | 56,125 | 42,324 | 91,737 | ||||||||||||||||||||
| Total profit before tax | 19,167 | 18,821 | 19,134 | 37,988 | 37,597 | 71,870 | ||||||||||||||||||||
Global Generics segment includes operations of Biologics business. Inter-segment revenues 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, 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 | The above statement of unaudited consolidated financial results of Dr.Reddy's Laboratories Limited ("the Company"), which have been prepared in accordance with recognition and measurement principles of IAS 34 as issued by the International Accounting Standards Board (IASB) and were reviewed and recommended by Audit Committee and approved by the Board of Directors at their meetings held on 05 November 2024. The Auditors have carried out a limited review on the unaudited consolidated financial results and issued an unmodified report thereon. |
| 2 | During the quarter and half year ended 30 September 2024, an amount of Rs. 906 million and Rs. 1,715 million, respectively, and during the quarter and half year ended 30 September 2023, an amount of Rs. 1,598 million and Rs. 2,274 million, respectively, representing government grants has been accounted as a reduction from cost of revenues. |
| 3 | "Impairment of non-current assets, net" recorded during the half year ended 30 September 2024 includes an amount of Rs.907 million pertaining to Haloette® (a generic equivalent to Nuvaring®), a product-related intangible, due to constraints on procurement of the underlying product from its contract manufacturer, resulting in a lower recoverable value compared to the carrying value. This impairment charge pertains to the Company’s Global Generics segment. |
| 4 | “Other income, net” for the year ended 31 March 2024 includes: |
a. Rs.540 million recognised, in April 2023, pursuant to settlement agreement with Janssen Group in settlement of the claim brought in the Federal Court of Canada by the Company and its affiliates for damages under section 8 of the Canadian Patented Medicines (Notice of Compliance) Regulations in regard to the Company’s ANDS for a generic version of Zytiga®(Abiraterone).
b. Rs.984 million recognised in September 2023 pursuant to settlement of product related litigation by the Company and its affiliates in the United Kingdom. These transactions pertains to the Company's Global Generics segment.
| 5 | Pursuant to the amendment in The Finance Act 2024, resulting in withdrawal of indexation benefit on long-term capital gain, the company has written off Deferred Tax Asset amounting to Rs.482 million, created in earlier period on land, during the quarter and half year ended 30 September 2024. |
| 6 | Business purchase agreement with Nestlé India: |
On 25 April 2024, the Company entered into an agreement with Nestlé India Limited ("Nestlé India") for the manufacturing, development, promotion, marketing, sale, distribution, and commercialization of nutraceutical products and supplements in India, as well as other mutually agreed geographies. These operations will be carried out by Dr. Reddy's Nutraceuticals Limited, established on 14 March 2024. The entity was later renamed as Dr. Reddy's and Nestlé Health Science Limited (the “Nutraceuticals subsidiary”) on 13 June 2024.
Upon completion of the closing conditions, the transaction concluded on 01 August 2024. Consequently, the Company has made an additional investment of Rs.7,340 million in its Nutraceuticals subsidiary, with corresponding infusion from Nestlé India amounting to Rs.7,056 million resulting in a revised shareholding pattern of 51:49 between the Company and Nestlé India. Subsequently, Nutraceuticals subsidiary had purchased the portfolio of nutraceutical products and supplements from Nestlé India for a consideration of Rs.2,231 million. The acquired portfolio consists of Product licenses, sales and marketing teams, contract manufacturers and employees. Based on fair valuation, the company had allocated purchase consideration and recognised Product licenses and other intangibles of Rs.1,982 million, property, plant and equipment and current assets of Rs.43 million and Goodwill of Rs.207 million.
Upon Closing, the Company had also transferred its nutraceuticals and supplements portfolio to the Nutraceuticals subsidiary as a common control transfer of business.
This acquisition pertains to the Company’s Global Generics segment.
Profit after tax attributable to Non-controlling interest for quarter and half year ended 30 September 2024, has arisen primarily on recognition of deferred tax asset on account of transfer of business from parent company to Nutraceuticals subsidiary. As at 30 September 2024, share of 49% held by Nestlé India is recorded under Non-controlling interest of Rs.3,939 million.
| 7 | Consolidated statements of financial position |
All amounts in Indian Rupees millions
| As at | As at | |||||||
| Particulars | 30.09.2024 | 31.03.2024 | ||||||
| (Unaudited) | (Audited) | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | 11,330 | 7,107 | ||||||
| Other investments | 51,744 | 74,363 | ||||||
| Trade and other receivables | 84,398 | 80,298 | ||||||
| Inventories | 72,039 | 63,552 | ||||||
| Derivative financial instruments | 400 | 169 | ||||||
| Other current assets | 28,217 | 22,560 | ||||||
| Total current assets | 248,128 | 248,049 | ||||||
| Non-current assets | ||||||||
| Property, plant and equipment | 86,693 | 76,886 | ||||||
| Goodwill | 11,773 | 4,253 | ||||||
| Other intangible assets | 92,119 | 36,951 | ||||||
| Investment in equity accounted investees | 4,779 | 4,196 | ||||||
| Other investments | 1,200 | 1,059 | ||||||
| Deferred tax assets | 17,475 | 10,774 | ||||||
| Tax assets | 2,278 | 3,718 | ||||||
| Other non-current assets | 1,510 | 1,632 | ||||||
| Total non-current assets | 217,827 | 139,469 | ||||||
| Total assets | 465,955 | 387,518 | ||||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities | ||||||||
| Trade and other payables | 35,776 | 30,919 | ||||||
| Short-term borrowings | 39,976 | 12,723 | ||||||
| Long-term borrowings, current portion | 1,158 | 1,307 | ||||||
| Provisions | 5,101 | 5,383 | ||||||
| Tax liabilities | 5,089 | 2,342 | ||||||
| Derivative financial instruments | 337 | 468 | ||||||
| Bank overdraft | 45 | - | ||||||
| Other current liabilities | 41,817 | 42,897 | ||||||
| Total current liabilities | 129,299 | 96,039 | ||||||
| Non-current liabilities | ||||||||
| Long-term borrowings | 7,361 | 5,990 | ||||||
| Deferred tax liabilities | 13,830 | 909 | ||||||
| Provisions | 159 | 61 | ||||||
| Other non-current liabilities | 6,023 | 3,969 | ||||||
| Total non-current liabilities | 27,373 | 10,929 | ||||||
| Total liabilities | 156,672 | 106,968 | ||||||
| Equity | ||||||||
| Share capital | 834 | 834 | ||||||
| Treasury shares | (915 | ) | (991 | ) | ||||
| Share premium | 11,065 | 10,765 | ||||||
| Share based payment reserve | 1,497 | 1,508 | ||||||
| Capital redemption reserve | 173 | 173 | ||||||
| Special economic zone re-investment reserve | 541 | 653 | ||||||
| Retained earnings | 285,180 | 265,257 | ||||||
| Other reserves | 3,979 | - | ||||||
| Other components of equity | 2,990 | 2,351 | ||||||
| Equity attributable to equity holders of the parent company | 305,344 | 280,550 | ||||||
| Non-controlling interests | 3,939 | - | ||||||
| Total equity | 309,283 | 280,550 | ||||||
| Total liabilities and equity | 465,955 | 387,518 | ||||||
| 8 | Consolidated statements of cash flows |
All amounts in Indian Rupees millions
| Half year ended | ||||||||
| Particulars | 30.09.2024 | 30.09.2023 | ||||||
| (Unaudited) | (Unaudited) | |||||||
| Cash flows from/(used in) operating activities : | ||||||||
| Profit for the period | 27,335 | 28,825 | ||||||
| Adjustments for: | ||||||||
| Tax expense, net | 10,653 | 8,772 | ||||||
| Fair value changes and profit on sale of financial instruments measured at FVTPL*, net | (2,245 | ) | (1,527 | ) | ||||
| Depreciation and amortization | 7,785 | 7,358 | ||||||
| Impairment of non-current assets | 929 | 66 | ||||||
| Allowance for credit losses (on trade receivables and other advances) | 96 | 137 | ||||||
| Gain on sale or de-recognition of non-current assets, net | (447 | ) | (445 | ) | ||||
| Share of profit of equity accounted investees | (120 | ) | (85 | ) | ||||
| Inventories write-down | 2,844 | 1,418 | ||||||
| Foreign exchange loss/(gain), net | 507 | (1,179 | ) | |||||
| Interest income, net | (54 | ) | (324 | ) | ||||
| Equity settled share-based payment expense | 208 | 211 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Trade and other receivables | (4,182 | ) | 2,689 | |||||
| Inventories | (11,331 | ) | (9,340 | ) | ||||
| Trade and other payables | 4,062 | 4,568 | ||||||
| Other assets and other liabilities, net | (9,474 | ) | (3,482 | ) | ||||
| Cash generated from operations | 26,566 | 37,662 | ||||||
| Income tax paid, net | (8,754 | ) | (8,486 | ) | ||||
| Net cash generated from operating activities | 17,812 | 29,176 | ||||||
| Cash flows (used in)/from investing activities : | ||||||||
| Purchase of property, plant and equipment | (12,646 | ) | (7,323 | ) | ||||
| Proceeds from sale of property, plant and equipment | 411 | 487 | ||||||
| Purchase of other intangible assets | (1,687 | ) | (8,787 | ) | ||||
| Proceeds from sale of other intangible assets | 419 | 21 | ||||||
| Payment for acquisition of businesses | (51,441 | ) | - | |||||
| Purchase of other investments | (138,326 | ) | (70,008 | ) | ||||
| Proceeds from sale of other investments | 162,988 | 71,815 | ||||||
| Investment in associates | (317 | ) | - | |||||
| Dividend received from equity accounted investees | - | 445 | ||||||
| Interest and dividend received | 1,280 | 597 | ||||||
| Net cash (used in)/from in investing activities | (39,319 | ) | (12,753 | ) | ||||
| Cash flows (used in)/from financing activities : | ||||||||
| Proceeds from issuance of equity shares (including treasury shares) | 157 | 765 | ||||||
| Proceeds from issuance of equity shares in subsidiary to Non-controlling interests | 7,056 | - | ||||||
| Proceeds from/(Repayment of) short-term borrowings, net | 27,556 | (1,054 | ) | |||||
| Repayment of long term borrowings | - | (3,800 | ) | |||||
| Proceeds from long term borrowings | - | 3,800 | ||||||
| Payment of principal portion of lease liabilities | (735 | ) | (524 | ) | ||||
| Dividend paid | (6,662 | ) | (6,648 | ) | ||||
| Interest paid | (1,681 | ) | (1,051 | ) | ||||
| Net cash used in financing activities | 25,691 | (8,512 | ) | |||||
| Net increase in cash and cash equivalents | 4,184 | 7,911 | ||||||
| Effect of exchange rate changes on cash and cash equivalents | (6 | ) | (155 | ) | ||||
| Cash and cash equivalents at the beginning of the period | 7,107 | 5,779 | ||||||
| Cash and cash equivalents at the end of the period(1) | 11,285 | 13,535 | ||||||
*FVTPL (fair value through profit or loss)
| (1) | Adjusted for bank-overdraft of Rs.45 million and Rs.4 million for the half year ended 30 September 2024 and 2023, respectively. |
| 9 |
Business purchase agreement with Haleon: On 26 June 2024, the Company entered into definitive agreement with Haleon UK Enterprises Limited (“Haleon”) to acquire Haleon’s global portfolio outside of the United States of consumer healthcare brands in the Nicotine Replacement Therapy category (“NRT Business”).
The definitive agreement for the acquisition of this NRT Business from Haleon includes the transfer of intellectual property, employees, agreements with commercial manufacturing organization, marketing authorizations and other assets relating to the commercialization of four brands - i.e., Nicotinell, Nicabate, Thrive, and Habitrol. The acquisition is inclusive of all formats such as lozenge, patch, spray and/or gum in all applicable global markets outside of the United States. The closing conditions were met, and the transaction was completed on 30 September 2024.
Upon Completion, the company acquired the shares of Northstar Switzerland SARL from Haleon for an upfront cash payment of Rs.51,407 million (GBP 458 million). An additional consideration of up to Rs.4,714 million (GBP 42 million) is payable which is contingent upon achieving agreed-upon sales targets in Calender years 2024 and 2025, bringing the total potential consideration to Rs.56,121 million (GBP 500 million).
The Company completed the provisional allocation of purchase price. The fair value of consideration transferred is Rs.55,897 million (GBP 498 million). Based on fair valuation, the Company recognised Intangibles (Brands) of Rs.54,920 million (GBP 488.80 million), Deferred tax liabilities of Rs.8,469 million (GBP 75.45 million) and Goodwill of Rs.7,249 million (GBP 64.58 million). This acquisition pertains to the Company’s Global Generics segment.
|
|
Further, The company executed a forward exchange contract to hedge its exposure to the payment made in GBP. Upon maturity, hedge gain of Rs.2,197 million (GBP 20 million) was reclassified from the cash flow hedge reserves and has been adjusted in consideration paid upon closing of the transaction.
Acquisition related costs amounting to Rs.1,017 and Rs.280 were recognised as expenses under “Selling, general and administrative expenses” during the half year ended 30 September 2024 and the year ended 31 March 2024, respectively.
This marketing authorisation will transition gradually into the Company in a phased approach between April 2025 and February 2026. During transition period, Haleon group will provide distribution and related services in the markets, facilitating successful integration of the business across various geographies into the Company. | |
| 10 |
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 has continued to engage with the SEC and DOJ, including through submissions and presentations regarding the initial complaint and additional complaints relating to other markets, and in relation to its Global Compliance Framework, which includes enhancement initiatives undertaken by the Company, and 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 and can also lead to civil and criminal sanctions under relevant laws, the outcomes, including liabilities, are not reasonably ascertainable at this time. |
| 11 | The Company considered the uncertainties relating to the escalation of conflict in the middle east, and duration of 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. |
| 12 |
The Board of Directors of the Company at their meeting held on 27 July 2024 have approved the sub-division/ split of each equity share having a face value of Rupees five each, fully paid-up, into five equity shares having a face value of Rupee One each, fully paid-up (the “stock split”), by alteration of the capital clause of the Memorandum of Association of the Company. Further, each American Depositary Share (ADS) of the Company will continue to represent one underlying equity share as at present and, therefore, the number of ADSs held by an American Depositary Receipt(ADR) holder would consequently increase in proportion to the increase in number of equity shares.
On 12 September 2024 the approval of the shareholders of the Company was obtained through a postal ballot process with a requisite majority.
Consequently, the authorized share capital was sub-divided into 1,450,000,000 equity shares, the paid up share capital is sub-divided into 834,384,730 equity shares and Treasury shares are sub-divided into 1,338,570 having a face value of Rupees One each w.e.f record date of 28 October 2024.
Post stock split, the number of each stock option vested and unvested and not exercised as on the record date were sub-divided into five options and the exercise price was proportionately adjusted.
The affect of stock split was considered in the computation of basic and diluted EPS for the quarter and half year ended 30 September 2024 and prior periods have been restated considering face value of Rupee One each in accordance with IAS 33 - "Earnings per Share" and rounded off to the nearest decimals. |
By order of the Board
For Dr. Reddy’s Laboratories Limited
| Place: Hyderabad | G V Prasad |
| Date: 5 November 2024 | Co-Chairman & Managing Director |
 |
|
Exhibit 99.3
| 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 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 for the Quarter and Half Year ended 30 September, 2024 (the “Statement”) of Dr. Reddy’s Laboratories Limited (the “Holding Company”) and its subsidiaries (the Holding Company and its subsidiaries together referred to as “the Group”), its associates and joint ventures 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 Master Circular 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: |
Holding Company:
Dr. Reddy’s Laboratories Limited
Subsidiaries:
| 1. | Aurigene Discovery Technologies (Malaysia) Sdn. Bhd. |
| 2. | Aurigene Oncology Limited (Formerly, Aurigene Discovery Technologies Limited) |
| 3. | Aurigene Pharmaceutical Services Limited |
| 4. | beta Institut gemeinnützige GmbH |
| 5. | betapharm Arzneimittel GmbH |
| 6. | Cheminor Investments Limited |
| 7. | Chirotech Technology Limited (Liquidated) |
| 8. | Dr. Reddy’s Farmaceutica Do Brasil Ltda. |
| 9. | Dr. Reddy’s Laboratories (EU) Limited |
| 10. | Dr. Reddy’s Laboratories (Proprietary) Limited |
| 11. | Dr. Reddy’s Laboratories (UK) Limited |
| 12. | Dr. Reddy’s Laboratories Canada, Inc. |
| 13. | Dr. Reddy’s Laboratories Chile SPA. |
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. | Dr. Reddy’s Laboratories Inc. |
| 15. | Dr. Reddy’s Laboratories Japan KK |
| 16. | Dr. Reddy’s Laboratories Kazakhstan LLP |
| 17. | Dr. Reddy’s Laboratories Louisiana LLC |
| 18. | Dr. Reddy’s Laboratories Malaysia Sdn. Bhd. |
| 19. | Dr. Reddy’s Laboratories New York, LLC |
| 20. | Dr. Reddy’s Laboratories Philippines Inc. |
| 21. | Dr. Reddy’s Laboratories Romania Srl |
| 22. | Dr. Reddy’s Laboratories SA |
| 23. | Dr. Reddy’s Laboratories Taiwan Limited |
| 24. | Dr. Reddy’s Laboratories (Thailand) Limited |
| 25. | Dr. Reddy’s Laboratories LLC, Ukraine |
| 26. | Dr. Reddy’s New Zealand Limited. |
| 27. | Dr. Reddy’s Srl |
| 28. | Dr. Reddy’s Bio-Sciences Limited |
| 29. | Dr. Reddy’s Laboratories (Australia) Pty. Limited |
| 30. | Dr. Reddy’s Laboratories SAS |
| 31. | Dr. Reddy’s Research and Development B.V. |
| 32. | Dr. Reddy’s Venezuela, C.A. (till April 17, 2024) |
| 33. | Dr. Reddy’s (Beijing) Pharmaceutical Co. Limited |
| 34. | DRL Impex Limited |
| 35. | Dr. Reddy’s Formulations Limited |
| 36. | Idea2Enterprises (India) Pvt. Limited |
| 37. | Imperial Owners and Land Possessions Private Limited (Formerly, Imperial Credit Private Limited) |
| 38. | Industrias Quimicas Falcon de Mexico, S.A. de CV |
| 39. | Lacock Holdings Limited |
| 40. | Dr. Reddy’s Laboratories LLC, Russia |
| 41. | Promius Pharma LLC |
| 42. | Reddy Holding GmbH |
| 43. | Reddy Netherlands B.V. |
| 44. | Reddy Pharma Iberia SAU |
| 45. | Reddy Pharma Italia S.R.L. |
| 46. | Reddy Pharma SAS |
| 47. | Svaas Wellness Limited |
| 48. | Nimbus Health GmbH |
| 49. | Dr. Reddy’s Laboratories Jamaica Limited |
| 50. | Dr. Reddy’s and Nestle Health Science Limited (Formerly, Dr. Reddy’s Nutraceuticals Limited) |
| 51. | Northstar Switzerland SARL (from September 30, 2024) |
| 52. | North Star OpCo Limited (from September 30, 2024) |
| 53. | North Star Sweden AB (from September 30, 2024) |
Associates:
| 1. | O2 Renewable Energy IX Private Limited |
| 2. | Clean Renewable Energy KK 2A Private Limited (from 30 May 2024) |
Joint Ventures:
| 1. | DRES Energy Private Limited |
| 2. | Kunshan Rotam Reddy Pharmaceutical Co. Limited |
Other Consolidating Entities:
| 1. | Dr. Reddy’s Employees ESOS Trust |
| 2. | Cheminor Employees Welfare Trust |
| 3. | Dr. Reddy’s Research Foundation |
S.R. Batliboi & Associates LLP
Chartered Accountants
| 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. |
For S.R. BATLIBOI & ASSOCIATES LLP
Chartered Accountants
ICAI Firm registration number: 101049W/E300004
 |
 |
| per Shankar Srinivasan | |
| Partner | |
| Membership No.: 213271 |
UDIN: 24213271BKELLC7849
Place: Hyderabad
Date: November 05, 2024
 |
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
STATEMENT OF UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30 SEPTEMBER 2024
| All amounts in Indian Rupees millions | ||||||||||||||||||||||||||
|
Sl. |
Quarter ended | Half year ended | Year ended | |||||||||||||||||||||||
| No. | Particulars | 30.09.2024 | 30.06.2024 | 30.09.2023 | 30.09.2024 | 30.09.2023 | 31.03.2024 | |||||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |||||||||||||||||||||
| 1 | Revenue from operations | |||||||||||||||||||||||||
| a) Sales | 78,859 | 75,396 | 67,348 | 154,255 | 133,491 | 271,396 | ||||||||||||||||||||
| b) License fees and service income | 1,302 | 1,331 | 1,454 | 2,633 | 2,695 | 7,768 | ||||||||||||||||||||
| c) Other operating income | 221 | 234 | 224 | 455 | 419 | 947 | ||||||||||||||||||||
| Total revenue from operations | 80,382 | 76,961 | 69,026 | 157,343 | 136,605 | 280,111 | ||||||||||||||||||||
| 2 | Other income | 3,075 | 1,872 | 3,150 | 4,747 | 4,890 | 8,943 | |||||||||||||||||||
| 3 | Total income (1 + 2) | 83,457 | 78,833 | 72,176 | 162,090 | 141,495 | 289,054 | |||||||||||||||||||
| 4 | Expenses | |||||||||||||||||||||||||
| a) Cost of materials consumed | 12,872 | 12,272 | 9,559 | 25,144 | 22,527 | 44,901 | ||||||||||||||||||||
| b) Purchase of stock-in-trade | 12,828 | 13,801 | 11,378 | 26,629 | 20,149 | 43,991 | ||||||||||||||||||||
| c) Changes in inventories of finished goods, work-in-progress and stock-in-trade | (2,033 | ) | (4,256 | ) | (907 | ) | (6,289 | ) | (3,270 | ) | (6,805 | ) | ||||||||||||||
| d) Employee benefits expense | 13,992 | 14,137 | 12,803 | 28,129 | 24,700 | 50,301 | ||||||||||||||||||||
| e) Depreciation and amortisation expense | 3,970 | 3,806 | 3,755 | 7,776 | 7,288 | 14,700 | ||||||||||||||||||||
| f) Impairment of non-current assets, net | 924 | 5 | 55 | 929 | 66 | 3 | ||||||||||||||||||||
| g) Finance costs | 757 | 598 | 353 | 1,355 | 724 | 1,711 | ||||||||||||||||||||
| h) Other expenses | 21,034 | 19,703 | 16,055 | 40,537 | 31,729 | 68,389 | ||||||||||||||||||||
| Total expenses | 64,344 | 60,066 | 53,051 | 124,210 | 103,913 | 217,191 | ||||||||||||||||||||
| 5 | Profit before tax and before share of equity accounted investees(3 - 4) | 19,113 | 18,767 | 19,125 | 37,880 | 37,582 | 71,863 | |||||||||||||||||||
| 6 | Share of profit of equity accounted investees, net of tax | 61 | 59 | 42 | 120 | 85 | 147 | |||||||||||||||||||
| 7 | Profit before tax (5+6) | 19,174 | 18,826 | 19,167 | 38,000 | 37,667 | 72,010 | |||||||||||||||||||
| 8 | Tax expense/(benefit): | |||||||||||||||||||||||||
| a) Current tax | 7,713 | 5,215 | 5,901 | 12,928 | 13,098 | 19,459 | ||||||||||||||||||||
| b) Deferred tax | (1,958 | ) | (313 | ) | (1,556 | ) | (2,271 | ) | (4,303 | ) | (3,228 | ) | ||||||||||||||
| 9 | Net profit after taxes and share of profit of associates (7 - 8) | 13,419 | 13,924 | 14,822 | 27,343 | 28,872 | 55,779 | |||||||||||||||||||
| 10 | Net profit after taxes attributable to | |||||||||||||||||||||||||
| a) Equity shareholders of the parent company | 12,557 | 13,924 | 14,822 | 26,481 | 28,872 | 55,779 | ||||||||||||||||||||
| b) Non-controlling interests | 862 | - | - | 862 | - | - | ||||||||||||||||||||
| 11 | Other comprehensive income/(loss) | |||||||||||||||||||||||||
| a) (i) Items that will not be reclassified subsequently to profit or loss | (33 | ) | (91 | ) | (222 | ) | (124 | ) | (116 | ) | (28 | ) | ||||||||||||||
| (ii) Income tax relating to items that will not be reclassified to profit or loss | - | - | - | - | - | 4 | ||||||||||||||||||||
| b) (i) Items that will be reclassified subsequently to profit or loss | 2,978 | 115 | (1,113 | ) | 3,093 | (966 | ) | (749 | ) | |||||||||||||||||
| (ii) Income tax relating to items that will be reclassified to profit or loss | 16 | (6 | ) | 201 | 10 | (9 | ) | 117 | ||||||||||||||||||
| Total other comprehensive income/(loss) | 2,961 | 18 | (1,134 | ) | 2,979 | (1,091 | ) | (656 | ) | |||||||||||||||||
| 12 | Total comprehensive income (9 + 11) | 16,380 | 13,942 | 13,688 | 30,322 | 27,781 | 55,123 | |||||||||||||||||||
| 13 | Total comprehensive income attributable to | |||||||||||||||||||||||||
| a) Equity shareholders of the parent company | 15,518 | 13,942 | 13,688 | 29,460 | 27,781 | 55,123 | ||||||||||||||||||||
| b) Non-controlling interest | 862 | - | - | 862 | - | - | ||||||||||||||||||||
| 14 | Paid-up equity share capital (face value Re. 1/- each) | 834 | 834 | 834 | 834 | 834 | 834 | |||||||||||||||||||
| 15 | Other equity | 281,714 | ||||||||||||||||||||||||
| 16 | Earnings per equity share attributable to equity shareholders of parent(face value Re. 1/- each) | |||||||||||||||||||||||||
| Basic | 15.08 | 16.72 | 17.82 | 31.80 | 34.73 | 67.04 | ||||||||||||||||||||
| Diluted | 15.05 | 16.70 | 17.78 | 31.75 | 34.65 | 66.92 | ||||||||||||||||||||
| (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 | |||||||||||||||||||||||||
| Sl. | Quarter ended | Half year ended | Year ended | |||||||||||||||||||||||
No. | Particulars | 30.09.2024 | 30.06.2024 | 30.09.2023 | 30.09.2024 | 30.09.2023 | 31.03.2024 | |||||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |||||||||||||||||||||
| Segment wise revenue and results: | ||||||||||||||||||||||||||
| 1 | Segment revenue : | |||||||||||||||||||||||||
| a) Pharmaceutical Services and Active Ingredients | 11,190 | 10,472 | 9,625 | 21,662 | 18,990 | 41,295 | ||||||||||||||||||||
| b) Global Generics | 71,636 | 68,929 | 61,130 | 140,565 | 121,260 | 245,673 | ||||||||||||||||||||
| c) Others | 179 | 212 | 683 | 391 | 1,276 | 3,922 | ||||||||||||||||||||
| Total | 83,005 | 79,613 | 71,438 | 162,618 | 141,526 | 290,890 | ||||||||||||||||||||
| Less: Inter-segment revenue | 2,623 | 2,652 | 2,412 | 5,275 | 4,921 | 10,779 | ||||||||||||||||||||
| Total revenue from operations | 80,382 | 76,961 | 69,026 | 157,343 | 136,605 | 280,111 | ||||||||||||||||||||
| 2 | Segment results: | |||||||||||||||||||||||||
| Gross profit from each segment | ||||||||||||||||||||||||||
| a) Pharmaceutical Services and Active Ingredients | 2,521 | 1,772 | 1,260 | 4,293 | 2,273 | 6,929 | ||||||||||||||||||||
| b) Global Generics | 45,162 | 44,518 | 38,872 | 89,680 | 77,258 | 154,272 | ||||||||||||||||||||
| c) Others | 89 | 58 | 242 | 147 | 398 | 2,423 | ||||||||||||||||||||
| Total | 47,772 | 46,348 | 40,374 | 94,120 | 79,929 | 163,624 | ||||||||||||||||||||
| Less: Selling and other un-allocable expenditure/(income), net | 28,598 | 27,522 | 21,207 | 56,120 | 42,262 | 91,614 | ||||||||||||||||||||
| Total profit before tax | 19,174 | 18,826 | 19,167 | 38,000 | 37,667 | 72,010 | ||||||||||||||||||||
Global Generics includes operations of Biologics business. Inter-segment revenue represents sale 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 | The above statement of unaudited consolidated financial results of Dr. Reddy's Laboratories Limited ("the Company"), which have been prepared in accordance with the Indian Accounting Standards ("Ind AS") prescribed under section 133 of Companies Act,2013 ("the Act") read with relevant rules issues thereunder, other accounting principles generally accepted in India and guidelines issues by the Securities and Exchange Board of India ("SEBI") were reviewed and recommended by Audit Committee and approved by the Board of Directors at their meetings held on 05 November 2024. The Statutory Auditors have carried out a limited review on the unaudited consolidated financial results and issued an unmodified report thereon. |
| 2 | “Other income” for the year ended 31 March 2024 includes : |
a. Rs.540 million recognised in April 2023, pursuant to settlement agreement with Janssen Group, in settlement of the claim brought in the Federal Court of Canada by the Company and its affiliates for damages under section 8 of the Canadian Patented Medicines (Notice of Compliance) Regulations in regard to the Company’s ANDS for a generic version of Zytiga®(Abiraterone).This transaction pertains to the Company's Global Generics segment.
b. Rs.984 million recognised in September 2023, pursuant to settlement of product related litigation by the Company and its affiliates in the United Kingdom. This transaction pertains to the Company's Global Generics segment.
| 3 | During the quarter and half year ended 30 September 2024, an amount of Rs. 906 million and Rs. 1,715 million, respectively and during the quarter and half year ended 30 September 2023 an amount of Rs. 1,598 million and Rs. 2,274 million, respectively representing government grants has been accounted as a reduction from cost of material consumed. |
| 4 | "Impairment of non-current assets, net" Impairment loss recorded during the six months ended 30 September 2024 includes an amount of Rs.907 million pertaining to Haloette® (a generic equivalent to Nuvaring®), a product-related intangible, due to constraints on procurement of the underlying product from its contract manufacturer, resulting in a lower recoverable value compared to the carrying value. This impairment charge pertains to the Company’s Global Generics segment. |
| 5 | Pursuant to the amendment in The Finance Act 2024, resulting in withdrawal of indexation benefit on long-term capital gain, the company has written off Deferred Tax Asset amounting to Rs. 482 million, created in earlier period on land, during the quarter and half year ended 30 September 2024. |
| 6 | Business purchase agreement with Nestlé India: On 25 April 2024, the Company entered into an agreement with Nestlé India Limited ("Nestlé India") for the manufacturing, development, promotion, marketing, sale, distribution, and commercialization of nutraceutical products and supplements in India, as well as other mutually agreed geographies. These operations will be carried out by Dr. Reddy's Nutraceuticals Limited, established on 14 March 2024. The entity was later renamed as Dr. Reddy's and Nestlé Health Science Limited (the “Nutraceuticals subsidiary”) on 13 June 2024. Upon completion of the closing conditions, the transaction concluded on 01 August 2024. Consequently, the Company has made an additional investment of Rs.7,340 million in its Nutraceuticals subsidiary, with corresponding infusion from Nestlé India amounting to Rs.7,056 million resulting in a revised shareholding pattern of 51:49 between the Company and Nestlé India. Subsequently, Nutraceuticals subsidiary had purchased the portfolio of nutraceutical products and supplements from Nestlé India for a consideration of Rs.2,231 million. The acquired portfolio consists of Product licenses, sales and marketing teams, contract manufacturers and employees. Based on fair valuation, the company had allocated purchase consideration and recognised Product licenses and other intangibles of Rs.1,982 million, property, plant and equipment and current assets of Rs. 43 million and Goodwill of Rs.207 million. Upon Closing, the Company had also transferred its nutraceuticals and supplements portfolio to the Nutraceuticals subsidiary as a common control transfer of business. This acquisition pertains to Company’s Global Generics segment. Profit after tax attributable to Non-controlling interest for quarter and half year ended 30 September 2024, has arisen primarily on recognition of deferred tax asset on account of transfer of business from parent company to Nutraceuticals subsidiary.As at 30 September 2024, share of 49% held by Nestlé India is recorded under Non-controlling interest of Rs.3,939 million. |
| |
|
DR. REDDY’S LABORATORIES LIMITED
| 7 | Business purchase agreement with Haleon: |
On June 26, 2024, the Company entered into definitive agreement with Haleon UK Enterprises Limited (“Haleon”) to acquire Haleon’s global portfolio outside of the United States of consumer healthcare brands in the Nicotine Replacement Therapy category (“NRT Business”).
The definitive agreement for the acquisition of this NRT Business from Haleon includes the transfer of intellectual property, employees, agreements with commercial manufacturing organization, marketing authorizations and other assets relating to the commercialization of four brands - i.e., Nicotinell, Nicabate, Thrive, and Habitrol. The acquisition is inclusive of all formats such as lozenge, patch, spray and/or gum in all applicable global markets outside of the United States.
The closing conditions were met, and the transaction was completed on 30 September 2024.
Upon Completion, the company acquired the shares of Northstar Switzerland SARL from Haleon for an upfront cash payment of Rs. 51,407 million (GBP 458 million). An additional consideration of up to Rs. 4,714 million (GBP 42 million) is payable which is contingent upon achieving agreed-upon sales targets in Calender years 2024 and 2025, bringing the total potential consideration to Rs. 56,121 million (GBP 500 million).
The Company completed the provisional allocation of purchase price. The fair value of consideration transferred is Rs. 55,897 million (GBP 498 million). Based on fair valuation, the Company recognised Intangibles (Brands) of Rs. 54,920 million (GBP 488.80 million), Deferred tax liabilities of Rs. 8,469 million (GBP 75.45 million) and Goodwill of Rs. 7,249 million (GBP 64.58 million). This acquisition pertains to the Company’s Global Generics segment.
Further, The company executed a forward exchange contract to hedge its exposure to the payment made in GBP. Upon maturity, hedge gain of Rs. 2,197 million (GBP 20 million) was reclassified from the cash flow hedge reserves and has been adjusted in consideration paid upon closing of the transaction.
Acquisition related costs amounting to Rs.1,017 and Rs.280 were recognised as expenses under “Other expenses” during the half year ended 30 September 2024 and the year ended 31 March 2024, respectively.
This marketing authorisation will transition gradually into the Company in a phased approach between April 2025 and February 2026. During transition period, Haleon group will provide distribution and related services in the markets, facilitating successful integration of the business across various geographies into the Company.
| 8 | The Board of Directors of the Company at their meeting held on 27 July 2024 have approved the sub-division/ split of each equity share having a face value of Rupees five each, fully paid-up, into five equity shares having a face value of Rupee One each, fully paid-up (the “stock split”), by alteration of the capital clause of the Memorandum of Association of the Company. Further, each American Depositary Share (ADS) of the Company will continue to represent one underlying equity share as at present and, therefore, the number of ADS held by an American Depositary Receipt(ADR) holder would consequently increase in proportion to the increase in number of equity shares. |
On 12 September 2024 the approval of the shareholders of the Company was obtained through a postal ballot process with a requisite majority.
Consequently, the authorized share capital was sub-divided into 1,450,000,000 equity shares, the paid up share capital is sub-divided into 834,384,730 equity shares and Treasury shares are sub-divided into 1,338,570 having a face value of Rupee One each w.e.f record date of 28 October 2024.
Post stock split, the number of each stock option vested and unvested and not exercised as on the record date were sub-divided into five options and the exercise price was proportionately adjusted.
The affect of stock split was considered in the computation of basic and diluted EPS for the quarter and half year ended 30 September 2024 and prior periods have been restated considering face value of Rupee One each in accordance with Ind AS 33- "Earnings per Share" and rounded off to the nearest decimals.
| 9 | The Company considered the uncertainties relating to the escalation of conflict in the middle east, and duration of 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. |
| 10 | 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 July 6, 2021, the Company received a subpoena from the SEC for the production of related documents, which were provided to the SEC. |
The Company has continued to engage with the SEC and DOJ, including through submissions and presentations regarding the initial complaint and additional complaints relating to other markets, and in relation to its Global Compliance Framework, which includes enhancement initiatives undertaken by the Company, and 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 and can also lead to civil and criminal sanctions under relevant laws, the outcomes, including liabilities, are not reasonably ascertainable at this time.
| |
|
DR. REDDY’S LABORATORIES LIMITED
| 11 | Consolidated Balance Sheet | All amounts in Indian Rupees millions |
| As at | ||||||||
| Particulars | 30.09.2024 | 31.03.2024 | ||||||
| (Unaudited) | (Audited) | |||||||
| ASSETS | ||||||||
| Non-current assets | ||||||||
| Property, plant and equipment | 67,263 | 62,487 | ||||||
| Capital work-in-progress | 18,521 | 13,510 | ||||||
| Goodwill | 13,159 | 5,501 | ||||||
| Other intangible assets | 91,434 | 36,268 | ||||||
| Intangible assets under development | 685 | 683 | ||||||
| Investment in equity accounted investees | 4,779 | 4,196 | ||||||
| Financial assets | ||||||||
| Investments | 1,200 | 1,059 | ||||||
| Other financial assets | 1,170 | 1,212 | ||||||
| Deferred tax assets, net | 17,295 | 10,578 | ||||||
| Tax assets, net | 2,279 | 3,718 | ||||||
| Other non-current assets | 1,301 | 1,373 | ||||||
| Total non-current assets | 219,086 | 140,585 | ||||||
| Current assets | ||||||||
| Inventories | 72,039 | 63,552 | ||||||
| Financial assets | ||||||||
| Investments | 30,647 | 44,050 | ||||||
| Trade receivables | 84,398 | 80,298 | ||||||
| Derivative financial instruments | 400 | 169 | ||||||
| Cash and cash equivalents | 11,330 | 7,107 | ||||||
| Other bank balances | 8,954 | 10,170 | ||||||
| Other financial assets | 15,524 | 22,527 | ||||||
| Other current assets | 24,906 | 20,180 | ||||||
| Total current assets | 248,198 | 248,053 | ||||||
| TOTAL ASSETS | 467,284 | 388,638 | ||||||
| EQUITY AND LIABILITIES | ||||||||
| Equity | ||||||||
| Equity share capital | 834 | 834 | ||||||
| Other equity | 306,659 | 281,714 | ||||||
| Equity attributable to equity shareholders of the parent company | 307,493 | 282,548 | ||||||
| Non-Controlling interests | 3,939 | - | ||||||
| Total equity | 311,432 | 282,548 | ||||||
| Liabilities | ||||||||
| Non-current liabilities | ||||||||
| Financial liabilities | ||||||||
| Borrowings | 3,800 | 3,800 | ||||||
| Lease liabilities | 3,561 | 2,190 | ||||||
| Other financial liabilities | 2,806 | - | ||||||
| Provisions | 331 | 239 | ||||||
| Deferred tax liabilities, net | 13,762 | 841 | ||||||
| Other non-current liabilities | 2,385 | 3,140 | ||||||
| Total non-current liabilities | 26,645 | 10,210 | ||||||
| Current liabilities | ||||||||
| Financial liabilities | ||||||||
| Borrowings | 40,022 | 12,723 | ||||||
| Lease liabilities | 1,158 | 1,307 | ||||||
| Trade payables | ||||||||
| Total outstanding dues of micro enterprises and small enterprises | 241 | 282 | ||||||
| Total outstanding dues of creditors other than micro enterprises and small enterprises | 29,965 | 25,862 | ||||||
| Derivative financial instruments | 337 | 468 | ||||||
| Other financial liabilities | 35,929 | 34,540 | ||||||
| Liabilities for current tax, net | 5,089 | 2,341 | ||||||
| Provisions | 6,361 | 6,920 | ||||||
| Other current liabilities | 10,105 | 11,437 | ||||||
| Total current liabilities | 129,207 | 95,880 | ||||||
| TOTAL EQUITY AND LIABILITIES | 467,284 | 388,638 | ||||||
| |
|
DR. REDDY’S LABORATORIES LIMITED
| 12 | Consolidated statement of cashflows | All amounts in Indian Rupees millions |
| Half year ended | ||||||||
| Particulars | 30.09.2024 | 30.09.2023 | ||||||
| (Unaudited) | (Unaudited) | |||||||
| Cash flows from/(used in) operating activities : | ||||||||
| Profit before tax | 38,000 | 37,667 | ||||||
| Adjustments for: | ||||||||
| Fair value changes and profit on sale of financial instruments measured at FVTPL*, net | (2,245 | ) | (1,527 | ) | ||||
| Depreciation and amortisation expense | 7,776 | 7,288 | ||||||
| Impairment of non-current assets | 929 | 66 | ||||||
| Allowance for credit losses (on trade receivables and other advances) | 96 | 137 | ||||||
| (Profit)/loss on sale or de-recognition of non-current assets, net | (447 | ) | (445 | ) | ||||
| Share of profit of equity accounted investees | (120 | ) | (85 | ) | ||||
| Unrealized exchange (gain)/loss, net | 504 | (1,179 | ) | |||||
| Interest income | (1,409 | ) | (1,048 | ) | ||||
| Finance costs | 1,355 | 724 | ||||||
| Equity settled share-based payment expense | 208 | 211 | ||||||
| Inventories write-down | 2,844 | 1,418 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Trade receivables | (4,182 | ) | 2,689 | |||||
| Inventories | (11,330 | ) | (9,340 | ) | ||||
| Trade and other payables | 4,062 | 4,568 | ||||||
| Other assets and other liabilities, net | (9,474 | ) | (3,482 | ) | ||||
| Cash generated from operations | 26,565 | 37,662 | ||||||
| Income tax paid, net | (8,754 | ) | (8,486 | ) | ||||
| Net cash generated from operating activities | 17,811 | 29,176 | ||||||
| Cash flows (used in)/from investing activities : | ||||||||
| Purchase of property, plant and equipment | (12,646 | ) | (7,323 | ) | ||||
| Proceeds from sale of property, plant and equipment | 411 | 487 | ||||||
| Purchase of other intangible assets | (1,687 | ) | (8,787 | ) | ||||
| Proceeds from sale of other intangible assets | 419 | 21 | ||||||
| Investment in equity accounted investees | (317 | ) | - | |||||
| Payment for acquisition of businesses | (51,441 | ) | - | |||||
| Purchase of investments (including bank deposits) | (138,326 | ) | (70,008 | ) | ||||
| Proceeds from sale of investments (including bank deposits) | 162,988 | 71,815 | ||||||
| Interest and dividend received | 1,280 | 597 | ||||||
| Dividend received from equity accounted investees | - | 445 | ||||||
| Net cash (used in)/from investing activities | (39,319 | ) | (12,753 | ) | ||||
| Cash flows (used in) financing activities : | ||||||||
| Proceeds from issuance of equity shares (including treasury shares) | 157 | 765 | ||||||
| Proceeds/(Repayment) of short-term borrowings, net | 27,556 | (1,054 | ) | |||||
| Repayment of long-term loans and borrowings | - | (3,800 | ) | |||||
| Proceeds from long term borrowings | - | 3,800 | ||||||
| Proceeds from issuance of equity shares in Subsidiary to Non-controlling interest | 7,056 | - | ||||||
| Payment of principal portion of lease liabilities | (735 | ) | (524 | ) | ||||
| Dividend paid | (6,662 | ) | (6,648 | ) | ||||
| Interest paid | (1,681 | ) | (1,051 | ) | ||||
| Net cash from/(used in) financing activities | 25,691 | (8,512 | ) | |||||
| Net increase/(decrease) in cash and cash equivalents | 4,184 | 7,911 | ||||||
| Effect of exchange rate changes on cash and cash equivalents | (6 | ) | (155 | ) | ||||
| Cash and cash equivalents at the beginning of the period | 7,107 | 5,779 | ||||||
| Cash and cash equivalents at the end of the period(1) | 11,285 | 13,535 | ||||||
**FVTPL (fair value through profit or loss)
(1)Adjusted for bank-overdraft of Rs. 45 million and Rs. 4 million for the half year ended 30 September 2024 and 30 September 2023, respectively.
| By order of the Board | |||
| For Dr. Reddy’s Laboratories Limited | |||
| |
|
 | |
| Place: Hyderabad | G V Prasad | ||
| Date: 05 November 2024 | Co-Chairman & Managing Director |
Exhibit 99.4
| S.R. Batliboi & Associates LLP Chartered Accountants |
THE SKYVIEW 10
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 for the Quarter and Half Year Ended 30 September, 2024” (the “Statement”) of Dr. Reddy’s Laboratories Limited (the “Company”) 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
 |
 |
| per Shankar Srinivasan | |
| Partner | |
| Membership No.: 213271 |
UDIN: 24213271BKELLB2962
Place: Hyderabad
Date: November 05, 2024
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
 |
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
STATEMENT OF UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30 SEPTEMBER 2024
| All amounts in Indian Rupees millions | |||||||||||||||||||||||||||
| Sl. | Quarter ended | Half year ended | Year ended | ||||||||||||||||||||||||
| No. | Particulars | 30.09.2024 | 30.06.2024 | 30.09.2023 | 30.09.2024 | 30.09.2023 | 31.03.2024 | ||||||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | ||||||||||||||||||||||
| 1 | Revenue from operations | ||||||||||||||||||||||||||
| a) Sales | 58,534 | 58,076 | 48,037 | 116,610 | 102,071 | 192,764 | |||||||||||||||||||||
| b) License fees and service income | 8,254 | 163 | 154 | 8,417 | 321 | 1,277 | |||||||||||||||||||||
| c) Other operating income | 175 | 173 | 196 | 348 | 368 | 797 | |||||||||||||||||||||
| Total revenue from operations | 66,963 | 58,412 | 48,387 | 125,375 | 102,760 | 194,838 | |||||||||||||||||||||
| 2 | Other income | 2,076 | 2,178 | 2,231 | 3,935 | 4,567 | 8,623 | ||||||||||||||||||||
| Total income (1 + 2) | 69,039 | 60,590 | 50,618 | 129,310 | 107,327 | 203,461 | |||||||||||||||||||||
| 3 | Expenses | ||||||||||||||||||||||||||
| a) Cost of materials consumed | 9,343 | 9,111 | 7,512 | 18,454 | 15,651 | 32,915 | |||||||||||||||||||||
| b) Purchase of stock-in-trade | 6,565 | 7,403 | 4,992 | 13,968 | 8,834 | 19,866 | |||||||||||||||||||||
| c) Changes in inventories of finished goods, work-in-progress and stock-in-trade | (930 | ) | (1,261 | ) | (1,054 | ) | (2,191 | ) | (1,217 | ) | (2,388 | ) | |||||||||||||||
| d) Employee benefits expense | 8,401 | 8,559 | 7,837 | 16,960 | 15,239 | 30,857 | |||||||||||||||||||||
| e) Depreciation and amortisation expense | 2,600 | 2,498 | 2,458 | 5,098 | 4,830 | 9,756 | |||||||||||||||||||||
| f) Impairment of non current assets, net | - | - | - | - | - | 260 | |||||||||||||||||||||
| g) Finance costs | 284 | 71 | 58 | 355 | 103 | 218 | |||||||||||||||||||||
| h) Other expenses | 16,368 | 15,070 | 12,809 | 31,119 | 25,685 | 54,064 | |||||||||||||||||||||
| Total expenses | 42,631 | 41,451 | 34,612 | 83,763 | 69,125 | 145,548 | |||||||||||||||||||||
| 4 | Profit before tax (1 + 2 - 3) | 26,408 | 19,139 | 16,006 | 45,547 | 38,202 | 57,913 | ||||||||||||||||||||
| 5 | Tax expense | ||||||||||||||||||||||||||
| a) Current tax | 7,033 | 4,666 | 3,960 | 11,699 | 9,347 | 13,618 | |||||||||||||||||||||
| b) Deferred tax | 554 | 301 | 120 | 855 | 535 | 875 | |||||||||||||||||||||
| 6 | Net profit for the period/year (4 - 5) | 18,821 | 14,172 | 11,926 | 32,993 | 28,320 | 43,420 | ||||||||||||||||||||
| 7 | Other comprehensive income / (loss) | ||||||||||||||||||||||||||
| a) (i) Items that will not be reclassified to profit or loss | - | - | 1 | - | 2 | 21 | |||||||||||||||||||||
| (ii) Income tax relating to items that will not be reclassified to profit or loss | - | - | - | - | - | (7 | ) | ||||||||||||||||||||
b) (i) Items that will be reclassified subsequently to profit or loss | (88 | ) | 55 | (802 | ) | (33 | ) | (281 | ) | (446 | ) | ||||||||||||||||
| (ii) Income tax relating to items that will be reclassified to profit or loss | 22 | (14 | ) | 201 | 8 | 71 | 114 | ||||||||||||||||||||
| Total other comprehensive (loss) / income | (66 | ) | 41 | (600 | ) | (25 | ) | (208 | ) | (318 | ) | ||||||||||||||||
| 8 | Total comprehensive income (6 + 7) | 18,755 | 14,213 | 11,326 | 32,968 | 28,112 | 43,102 | ||||||||||||||||||||
| 9 | Paid-up equity share capital (face value Re. 1/- each) | 834 | 834 | 834 | 834 | 834 | 834 | ||||||||||||||||||||
| 10 | Other equity | 241,574 | |||||||||||||||||||||||||
| 11 | Earnings per equity share (face value Re. 1/- each) | ||||||||||||||||||||||||||
| Basic | 22.60 | 17.02 | 14.34 | 39.62 | 34.06 | 52.19 | |||||||||||||||||||||
| Diluted | 22.56 | 16.99 | 14.31 | 39.55 | 33.99 | 52.09 | |||||||||||||||||||||
| (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 | ||||||||||||||||||||||||||
| Sl. | Quarter ended | Half year ended | Year ended | ||||||||||||||||||||||||
| No. | Particulars | 30.09.2024 | 30.06.2024 | 30.09.2023 | 30.09.2024 | 30.09.2023 | 31.03.2024 | ||||||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | ||||||||||||||||||||||
| Segment wise revenue and results | |||||||||||||||||||||||||||
| 1 | Segment revenue | ||||||||||||||||||||||||||
| a) Pharmaceutical Services and Active Ingredients | 7,972 | 8,520 | 6,357 | 16,492 | 13,242 | 30,742 | |||||||||||||||||||||
| b) Global Generics | 61,467 | 52,447 | 43,995 | 113,914 | 93,673 | 173,405 | |||||||||||||||||||||
| c) Others | 23 | 61 | 128 | 84 | 259 | 678 | |||||||||||||||||||||
| Total | 69,462 | 61,028 | 50,480 | 130,490 | 107,174 | 204,825 | |||||||||||||||||||||
| Less: Inter-segment revenue | 2,499 | 2,616 | 2,093 | 5,115 | 4,414 | 9,987 | |||||||||||||||||||||
| Total revenue from operations | 66,963 | 58,412 | 48,387 | 125,375 | 102,760 | 194,838 | |||||||||||||||||||||
| 2 | Segment results | ||||||||||||||||||||||||||
| Profit / (loss) before tax and interest from each segment | |||||||||||||||||||||||||||
| a) Pharmaceutical Services and Active Ingredients | (146 | ) | (70 | ) | (540 | ) | (216 | ) | (1,136 | ) | (287 | ) | |||||||||||||||
| b) Global Generics | 26,800 | 19,667 | 16,174 | 46,467 | 38,666 | 57,670 | |||||||||||||||||||||
| c) Others | 20 | 97 | 108 | 117 | 99 | 536 | |||||||||||||||||||||
| Total | 26,674 | 19,694 | 15,742 | 46,368 | 37,629 | 57,919 | |||||||||||||||||||||
| Less: (i) Finance costs | 284 | 71 | 58 | 355 | 103 | 218 | |||||||||||||||||||||
| (ii) Other un-allocable expenditure / (income), net | (18 | ) | 484 | (322 | ) | 466 | (676 | ) | (212 | ) | |||||||||||||||||
| Total profit before tax | 26,408 | 19,139 | 16,006 | 45,547 | 38,202 | 57,913 | |||||||||||||||||||||
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 | The above statement of unaudited standalone financial results of Dr. Reddy's Laboratories Limited ("the Company"), which have been prepared in accordance with the Indian Accounting Standards (''Ind AS'') prescribed under Section 133 of the Companies Act, 2013 ("the Act'') read with relevant rules issued thereunder, other accounting principles generally accepted in India and guidelines issued by the Securities and Exchange Board of India ("SEBI'') were reviewed and recommended by the Audit Committee and approved by the Board of Directors at their meetings held on 05 November 2024. The Statutory Auditors have carried out a limited review on the unaudited standalone financial results and issued unmodified report thereon. |
| 2 | "Other income" for the year ended 31 March 2024 includes: a) Rs.540 million recognised in April 2023, pursuant to settlement agreement with Janssen Group, in settlement of the claim brought in the Federal Court of Canada by the Company and its affiliates for damages under section 8 of the Canadian Patented Medicines (Notice of Compliance) Regulations in regard to the Company’s ANDS for a generic version of Zytiga®(Abiraterone).This transaction pertains to the Company's Global Generics segment. b) Dividend income of Rs. 445 million recognised in June 2023, declared by Kunshan Rotan Reddy Pharmaceutical Company Limited, joint venture of the company. |
| 3 | During the quarter and half year ended 30 September 2024, an amount of Rs. 896 million and Rs. 1,700 million respectively and during quarter and half year ended 30 September 2023, an amount of Rs. 1,590 million and Rs. 2,263 million respectively, representing government grants have been accounted as a reduction from cost of material consumed. |
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DR. REDDY'S LABORATORIES LIMITED
| 4 | Pursuant to the amendment in The Finance Act 2024, resulting in withdrawal of indexation benefit on long-term capital gain, the company has written off Deferred Tax Asset amounting to Rs. 482 million, created in earlier period on land, during the quarter and half year ended 30 September 2024. |
| 5 | Agreement with Nestlé India: On 25 April 2024, the Company entered into an agreement with Nestlé India Limited ("Nestlé India") for the manufacturing, development, promotion, marketing, sale, distribution, and commercialization of nutraceutical products and supplements in India, as well as other mutually agreed geographies. These operations will be carried out by Dr. Reddy's Nutraceuticals Limited, established on 14 March 2024. The entity was later renamed as Dr. Reddy's and Nestlé Health Science Limited (the “Nutraceuticals subsidiary”) on 13 June 2024. |
| Upon completion of the closing conditions, the transaction concluded on 01 August 2024. Consequently, the Company has made an additional investment of Rs. 7,340 million in its Nutraceuticals subsidiary, with corresponding infusion from Nestlé India amounting to Rs. 7,056 million resulting in a revised shareholding pattern of 51:49 between the Company and Nestlé India. | |
| Further, the Company also received Rs. 8,113 million (excluding GST) as consideration towards transfer of its nutraceutical and vitamins, minerals, herbals, and supplements portfolio to Nutraceuticals subsidiary as part of the definitive agreement. This has been recorded as License fees for the quarter and half year ended 30 September 2024. | |
| This acquisition pertains to Company’s Global Generics segment. |
| 6 |
The Board of Directors of the Company at their meeting held on 27 July 2024 have approved the sub-division/ split of each equity share having a face value of Rupees five each, fully paid-up, into five equity shares having a face value of Rupee One each, fully paid-up (the “stock split”), by alteration of the capital clause of the Memorandum of Association of the Company. Further, each American Depositary Share (ADS) of the Company will continue to represent one underlying equity share as at present and, therefore, the number of ADSs held by an American Depositary Receipt(ADR) holder would consequently increase in proportion to the increase in number of equity shares.
On 12 September 2024 the approval of the shareholders of the Company was obtained through a postal ballot process with a requisite majority.
Consequently, the authorized share capital was sub-divided into 1,450,000,000 equity shares, the paid up share capital is sub-divided into 834,384,730 equity shares and Treasury shares are sub-divided into 1,338,570 having a face value of Rupee One each w.e.f record date of 28 October 2024.
Post stock split, the number of each stock option vested and unvested and not exercised as on the record date were sub-divided into five options and the exercise price was proportionately adjusted.
The affect of stock split was considered in the computation of basic and diluted EPS for the quarter and half year ended 30 September 2024 and prior periods have been restated considering face value of Rupee One each in accordance with Ind AS 33- "Earnings per Share" and rounded off to the nearest decimals. |
| 7 | The Company considered the uncertainties relating to the escalation of conflict in the middle east, and duration of 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. |
| 8 |
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 has continued to engage with the SEC and DOJ, including through submissions and presentations regarding the initial complaint and additional complaints relating to other markets, and in relation to its Global Compliance Framework, which includes enhancement initiatives undertaken by the Company, and 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 and can also lead to civil and criminal sanctions under relevant laws, the outcomes, including liabilities, are not reasonably ascertainable at this time. |
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DR. REDDY'S LABORATORIES LIMITED
| 9 Balance sheet | All amounts in Indian Rupees millions | |||||||
| As at | As at | |||||||
| Particulars | 30.09.2024 | 31.03.2024 | ||||||
| (Unaudited) | (Audited) | |||||||
| ASSETS | ||||||||
| Non-current assets | ||||||||
| Property, plant and equipment | 54,419 | 51,094 | ||||||
| Capital work-in-progress | 15,754 | 11,719 | ||||||
| Goodwill | 853 | 853 | ||||||
| Other intangible assets | 23,341 | 23,944 | ||||||
| Intangible assets under development | 391 | 391 | ||||||
| Financial assets | ||||||||
| Investments | 99,686 | 32,027 | ||||||
| Loans | 15 | 617 | ||||||
| Other financial assets | 873 | 919 | ||||||
| Tax assets, net | 1,023 | 3,161 | ||||||
| Other non-current assets | 790 | 709 | ||||||
| Total non-current assets | 197,145 | 125,434 | ||||||
| Current assets | ||||||||
| Inventories | 45,679 | 40,189 | ||||||
| Financial assets | ||||||||
| Investments | 25,333 | 41,179 | ||||||
| Trade receivables | 59,514 | 46,239 | ||||||
| Derivative instruments | 242 | 165 | ||||||
| Cash and cash equivalents | 983 | 2,014 | ||||||
| Other bank balances | 5,547 | 10,155 | ||||||
| Other financial assets | 14,288 | 22,078 | ||||||
| Other current assets | 17,865 | 16,140 | ||||||
| Total current assets | 169,451 | 178,159 | ||||||
| TOTAL ASSETS | 366,596 | 303,593 | ||||||
| EQUITY AND LIABILITIES | ||||||||
| Equity | ||||||||
| Equity share capital | 834 | 834 | ||||||
| Other equity | 268,245 | 241,574 | ||||||
| Total Equity | 269,079 | 242,408 | ||||||
| Liabilities | ||||||||
| Non-current liabilities | ||||||||
| Financial liabilities | ||||||||
| Lease liabilities | 480 | 495 | ||||||
| Provisions | 92 | 93 | ||||||
| Deferred tax liabilities, net | 5,007 | 4,161 | ||||||
| Other non-current liabilities | 952 | 1,055 | ||||||
| Total non-current liabilities | 6,531 | 5,804 | ||||||
| Current liabilities | ||||||||
| Financial liabilities | ||||||||
| Borrowings | 37,100 | 7,100 | ||||||
| Lease liabilities | 307 | 334 | ||||||
| Trade payables | ||||||||
| Total outstanding dues of micro enterprises and small enterprises | 240 | 268 | ||||||
| Total outstanding dues of creditors other than micro enterprises and small enterprises | 21,618 | 20,180 | ||||||
| Derivative instruments | 322 | 290 | ||||||
| Other financial liabilities | 18,826 | 17,023 | ||||||
| Liabilities for current tax, net | 4,066 | 670 | ||||||
| Provisions | 2,977 | 3,283 | ||||||
| Other current liabilities | 5,530 | 6,233 | ||||||
| Total current liabilities | 90,986 | 55,381 | ||||||
| TOTAL EQUITY AND LIABILITIES | 366,596 | 303,593 | ||||||
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DR. REDDY'S LABORATORIES LIMITED
| 10 Statement of cashflows | All amounts in Indian Rupees millions | |||||||
| Half year ended | ||||||||
| Particulars | 30.09.2024 | 30.09.2023 | ||||||
| (Unaudited) | (Unaudited) | |||||||
| Cash flows from/(used in) operating activities : | ||||||||
| Profit before tax | 45,547 | 38,202 | ||||||
| Adjustments for: | ||||||||
| Fair value changes and profit on sale of financial instruments measured at FVTPL**, net | (1,988 | ) | (1,477 | ) | ||||
| Depreciation and amortisation expense | 5,098 | 4,830 | ||||||
| Allowance for credit losses (on trade receivables and other advances) | 87 | 111 | ||||||
| Profit on sale or de-recognition of non-current assets, net | (4 | ) | (380 | ) | ||||
| Unrealized exchange (gain)/loss, net | (117 | ) | 105 | |||||
| Interest income | (1,718 | ) | (1,425 | ) | ||||
| Finance costs | 355 | 103 | ||||||
| Equity settled share-based payment expense | 189 | 180 | ||||||
| Inventories write-down | 1,635 | 769 | ||||||
| Dividend income | - | (445 | ) | |||||
| Changes in operating assets and liabilities: | ||||||||
| Trade receivables | (13,354 | ) | (13,753 | ) | ||||
| Inventories | (7,125 | ) | (6,475 | ) | ||||
| Trade payables | 1,410 | 3,012 | ||||||
| Other assets and other liabilities, net | (2,100 | ) | (3,014 | ) | ||||
| Cash generated from operations | 27,915 | 20,343 | ||||||
| Income taxes paid, net | (6,166 | ) | (4,643 | ) | ||||
| Net cash generated from operating activities | 21,749 | 15,700 | ||||||
| Cash flows from/(used in) investing activities : | ||||||||
| Purchase of property, plant and equipment | (10,204 | ) | (6,379 | ) | ||||
| Proceeds from sale of property, plant and equipment | 194 | 414 | ||||||
| Purchase of other intangible assets | (577 | ) | (964 | ) | ||||
| Proceeds from sale of other intangible assets | 104 | 21 | ||||||
| Purchase of investments (including bank deposits) | (113,202 | ) | (65,458 | ) | ||||
| Proceeds from sale of investments (including bank deposits) | 143,644 | 62,762 | ||||||
| Equity investments in subsidiary/associates | (67,601 | ) | (500 | ) | ||||
| Dividend received | - | 445 | ||||||
| Interest income received | 1,619 | 683 | ||||||
| Loans and advances repaid/(given) by/to subsidiaries | 602 | (602 | ) | |||||
| Net cash used in investing activities | (45,421 | ) | (9,578 | ) | ||||
| Cash flows from/(used in) financing activities : | ||||||||
| Proceeds from issuance of equity shares (including treasury shares) | 157 | 765 | ||||||
| Proceeds/(Repayment of) from short-term loans and borrowings, net | 29,985 | (6 | ) | |||||
| Payment of principal portion of lease liabilities | (140 | ) | (126 | ) | ||||
| Dividend paid | (6,662 | ) | (6,648 | ) | ||||
| Interest paid | (683 | ) | (117 | ) | ||||
| Net cash from/(used in) financing activities | 22,657 | (6,132 | ) | |||||
| Net decrease in cash and cash equivalents | (1,015 | ) | (10 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | (16 | ) | 3 | |||||
| Cash and cash equivalents at the beginning of the period | 2,014 | 1,123 | ||||||
| Cash and cash equivalents at the end of the period | 983 | 1,116 | ||||||
*Rounded off to million.
**FVTPL (fair value through profit or loss)
By order of the Board
For Dr. Reddy's Laboratories Limited
| Place: | Hyderabad | G V Prasad |
| Date: | 05 November 2024 | Co-Chairman & Managing Director |
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