Dr Reddys Laboratories Ltd 6-K, filed May 19, 2022

Dr Reddys Laboratories Ltd (RDY)

6-K 2022-05-19 For: 2022-05-19

View Original

Added on April 09, 2026

About this 6-K

Dr Reddys Laboratories Ltd filed this 6-K on May 19, 2022.

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →

Exhibit Number	Description of Exhibits

99.1	Press Release, “Dr. Reddy’s Q4 FY22 Financial Results”, May 19, 2022.

99.2	IFRS Audited Consolidated Financial Results for the quarter and year ended March 31, 2022.

99.3	Ind AS Audited Consolidated Financial Results for the quarter and year ended March 31, 2022.

99.4	Ind AS Audited Standalone Financial Results for the quarter and year ended March 31, 2022.

	DR. REDDY’S LABORATORIES LIMITED (Registrant)
Date: May 19, 2022	By:	/s/ K Randhir Singh
		Name:	K Randhir Singh
		Title:	Company Secretary & Compliance Officer

	Q4 FY22						Q4 FY21						YoY			Q3 FY22						QoQ
Particulars	($)			(Rs.)			($)			(Rs.)			Gr %			($)			(Rs.)			Gr%
Revenues		717			54,368			623			47,284			15			701			53,197			2
Cost of Revenues		338			25,625			289			21,909			17			324			24,585			4
Gross Profit		379			28,743			334			25,375			13			377			28,612			0
Operating Expenses
Selling, General & Administrative expenses		207			15,674			189			14,370			9			203			15,411			2
Research and Development expenses		57			4,326			54			4,094			6			55			4,159			4
Impairment of non-current assets		99			7,515			24			1,835			310			1			47
Other operating income		(4	)		(291	)		(8	)		(587	)		(50	)		(3	)		(240	)		21
Results from operating activities		20			1,519			75			5,663			(73	)		122			9,235			(84	)
Net finance income		(11	)		(859	)		(4	)		(318	)		170			(4	)		(289	)		197
Share of profit of equity accounted investees		(1	)		(105	)		(2	)		(179	)		(41	)		(2	)		(185	)		(43	)
Profit before income tax		33			2,483			81			6,160			(60	)		128			9,709			(74	)
Income tax expense		21			1,608			33			2,536			(37	)		35			2,644			(39	)
Profit for the period		12			875			48			3,624			(76	)		93			7,065			(88	)

Diluted Earnings Per Share (EPS)		0.07			5.26			0.29			21.80			(76	)		0.56			42.48			(88	)

As % to revenues	Q4 FY22		Q4 FY21		Q3 FY22
Gross Profit		52.9		53.7		53.8
SG&A		28.8		30.4		29.0
R&D		8.0		8.7		7.8
EBITDA		23.9		23.8		23.8
PBT		4.6		13.0		18.3
PAT		1.6		7.7		13.3

	Q4 FY22				Q4 FY21				Q3 FY22
Particulars	($)		(Rs.)		($)		(Rs.)		($)			(Rs.)
Profit before Income Tax		33		2,483		81		6,160		128			9,709
Interest (income) / expense (net)*		0		24		1		75		(1	)		(72	)
Depreciation		27		2,039		28		2,089		27			2,066
Amortization		12		920		14		1,080		12			910
Impairment		99		7,515		24		1,836		1			47
EBITDA		171		12,980		148		11,239		167			12,659

	FY22									FY21									Gr
Particulars	($)			(Rs.)			%			($)			(Rs.)			%			%
Revenue		2,826			2,14,391			100.0			2,501			1,89,722			100.0			13
Cost of revenues		1,325			1,00,551			46.9			1,142			86,645			45.7			16
Gross profit		1,500			1,13,840			53.1			1,359			1,03,077			54.3			10
Operating Expenses
Selling, General & Administrative expenses		818			62,081			29.0			720			54,650			28.8			14
Research and Development expenses		230			17,482			8.2			218			16,541			8.7			6
Impairment of non-current assets		100			7,562			3.5			113			8,588			4.5			(12	)
Other operating income		(36	)		(2,761	)		(1.3	)		(13	)		(982	)		(0.5	)		181
Results from operating activities		389			29,476			13.7			320			24,280			12.8			21
Net finance income		(28	)		(2,119	)		(1.0	)		(22	)		(1,653	)		(0.9	)		28
Share of profit of equity accounted investees		(9	)		(703	)		(0.3	)		(6	)		(480	)		(0.3	)		46
Profit before income tax		426			32,298			15.1			348			26,413			13.9			22
Income tax expense		115			8,730			4.1			121			9,175			4.8			(5	)
Profit for the period		311			23,568			11.0			227			17,238			9.1			37

Diluted EPS		1.87			141.69						1.37			103.65						37

	As on 31st Mar 2022				As on 31st Dec 2021				As on 31st Mar 2021
Particulars	($)		(Rs.)		($)		(Rs.)		($)		(Rs.)
Cash and cash equivalents and other investments		633		48,033		495		37,556		521		39,531
Trade receivables (current & non-current)		881		66,818		824		62,507		656		49,759
Inventories		671		50,884		655		49,675		599		45,412
Property, plant and equipment		819		62,169		830		62,971		753		57,111
Goodwill and Other Intangible assets		417		31,664		482		36,581		530		40,216
Loans and borrowings (current & non-current)		446		33,845		371		28,164		399		30,308
Trade payables		337		25,572		323		24,492		313		23,744
Equity		2,511		1,90,527		2,504		1,90,016		2,281		1,73,062

	FY22							FY21							Gr
Segment	($)		(Rs.)		%			($)		(Rs.)		%			%
Global Generics		2,362		1,79,170		84	%		2,035		1,54,404		81	%		16	%
North America		987		74,915		35	%		929		70,494		37	%		6	%
Europe		219		16,631		8	%		203		15,404		8	%		8	%
India		553		41,957		20	%		440		33,419		18	%		26	%
Emerging Markets		602		45,667		21	%		462		35,087		18	%		30	%
Pharmaceutical Services and Active Ingredients (PSAI)		405		30,740		14	%		422		31,982		17	%		-4	%
Proprietary Products & Others		59		4,481		2	%		44		3,336		2	%		34	%
Total		2,826		2,14,391		100	%		2,501		1,89,722		100	%		13	%

		All amounts in Indian Rupees millions
			Quarter ended									Year ended
Sl. No.		Particulars	31.03.2022			31.12.2021			31.03.2021			31.03.2022			31.03.2021
			(Audited)			(Unaudited)			(Audited)			(Audited)			(Audited)
	1	Revenues		54,368			53,197			47,284			214,391			189,722
	2	Cost of revenues		25,625			24,585			21,909			100,551			86,645
	3	Gross profit (1 - 2)		28,743			28,612			25,375			113,840			103,077
	4	Selling, general and administrative expenses		15,674			15,411			14,370			62,081			54,650
	5	Research and development expenses		4,326			4,159			4,094			17,482			16,541
	6	Impairment of non-current assets		7,515			47			1,835			7,562			8,588
	7	Other income, net		(291	)		(240	)		(587	)		(2,761	)		(982	)
		Total operating expenses		27,224			19,377			19,712			84,364			78,797
	8	Results from operating activities [(3) - (4 + 5 + 6 + 7)]		1,519			9,235			5,663			29,476			24,280
		Finance income		1,175			504			615			3,077			2,623
		Finance expense		(316	)		(215	)		(297	)		(958	)		(970	)
	9	Finance income, net		859			289			318			2,119			1,653
	10	Share of profit of equity accounted investees, net of tax		105			185			179			703			480
	11	Profit before tax (8 + 9 + 10)		2,483			9,709			6,160			32,298			26,413
	12	Tax expense/(benefit), net		1,608			2,644			2,536			8,730			9,175
	13	Profit for the period/year (11 -12)		875			7,065			3,624			23,568			17,238
	14	Earnings per share:
		Basic earnings per share of Rs.5/- each		5.28			42.58			21.86			142.08			103.94
		Diluted earnings per share of Rs.5/- each		5.26			42.48			21.80			141.69			103.65
				(Not annualised)			(Not annualised)			(Not annualised)

Segment information									All amounts in Indian Rupees millions
			Quarter ended						Year ended
Sl. No.		Particulars	31.03.2022		31.12.2021		31.03.2021		31.03.2022		31.03.2021
			(Audited)		(Unaudited)		(Audited)		(Audited)		(Audited)
		Segment wise revenue and results:
	1	Segment revenue:
		a) Pharmaceutical Services and Active Ingredients		9,256		8,887		9,796		36,995	38,887
		b) Global Generics		46,118		44,508		38,737		179,170	154,404
		c) Proprietary Products		191		129		243		1,611	523
		d) Others		502		1,289		389		2,870	2,813
		Total		56,067		54,813		49,165		220,646	196,627
		Less: Inter-segment revenues		1,699		1,616		1,881		6,255	6,905
		Net revenues		54,368		53,197		47,284		214,391	189,722

	2	Segment results:
		Gross profit from each segment
		a) Pharmaceutical Services and Active Ingredients		1,387		1,638		2,513		6,821	9,426
		b) Global Generics		26,830		25,731		22,446		103,270	91,111
		c) Proprietary Products		184		129		238		1,590	482
		d) Others		342		1,114		178		2,159	2,058
		Total		28,743		28,612		25,375		113,840	103,077
		Less: Selling and other un-allocable expenditure, net of other income		26,260		18,903		19,215		81,542	76,664
		Total profit before tax		2,483		9,709		6,160		32,298	26,413

	1	The above financial results have been prepared in accordance with International Financial Reporting Standards and its interpretations (IFRS), as issued by the International Accounting Standards Board (IASB).

	2	Revenues for the quarter and year ended 31 March 2022 includes: a) Rs. 1,774 million towards the sale of territorial rights relating to two of the Company's anti-bacterial brands (Ciprolet® and Levolet®) in Russia and CIS region to Alium JSC; b) Rs. 390 million towards the sale of two of the Company's Brands (Daffy bar and Combihale) in India to Mankind Pharma Limited. The aforesaid transactions pertain to Company’s Global Generics Segment.

	3	During the quarter and year ended 31 March 2022, there were significant changes to the market conditions for certain of the products forming part of Company’s Global Generics and Proprietary Products segments. The changes include, decrease in the market potential of products, increased competition leading to lower volumes, and revenues not being in line with projections. Due to these adverse market developments, the Company recorded an impairment loss of Rs. 7,562 million on various non-current assets. The said impairment loss includes: a) Rs. 4,337 million relating to PPC-06 (Tepilamide Fumarate Extended Release Tablets) in-process research and development asset; b) Rs. 3,051 million pertaining to Shreveport Cash Generating Unit (“CGU”) comprising of Property, plant and equipment and Goodwill; c) Rs. 174 million relating to other intangible assets.

	4	On 3 February 2022, the Company entered into an agreement with Nimbus Health GmbH to acquire 100% of its share capital along with the existing employees for an upfront payment of Rs. 421 million (EUR 5 million) plus performance and milestone-based earn-outs over the next four years. As at 31 March 2022 the Company, on a provisional basis, recognised Rs. 161 million and Rs. 260 million towards the fair value of assets acquired and goodwill, respectively. The acquisition pertains to the Company's Global Generic segment.

	5	Included in "Selling, general and administrative expenses" for the quarter ended 31 March 2022, an amount of Rs. 983 million representing the probable outflow with respect to an ongoing Civil Investigative Demand (“CID”) matter with the State of Texas.

	6	During the quarter and year ended 31 March 2022, pursuant to a change in the U.S. Income tax regulations relating to the timing of recognition of certain sales based accruals, the Company recognised current tax liability of Rs. 4,602 million with a corresponding increase in the deferred tax asset.

	7	On 5 April 2022 the Company received approval from the Honorable National Company Law Tribunal, Hyderabad Bench (“NCLT”) for the merger of Dr. Reddy's Holding Limited into Dr. Reddy's Laboratories Limited. Subsequently, the Company has filed the NCLT order, with the Ministry of Company Affairs on 8 April 2022 (‘Effective Date’).

	8	In September 2021, the Company completed the sale of its U.S. and Canada territory rights for ELYXYB (celecoxib oral solution) 25 mg/mL, to BioDelivery Sciences International, Inc. An amount of Rs. 1,084 million is included under the head "Revenues". This pertains to the Company’s Proprietary Products segment.

	9	Included in "Other income, net" for the quarter ended 30 September 2021, is Rs. 1,064 million representing the profit on sale of intangible asset, E7777 (anti-cancer agent) to Citius Pharmaceuticals, Inc. This transaction pertains to the Company’s Proprietary Products segment.

	10	On 14 June 2021, the Company received the arbitration decision and award in favour of Hatchtech Pty Limited regarding the Civil Litigation and Arbitration relating to the acquisition of the product Xeglyze®. The award required the Company to pay an amount of Rs. 3,382 million (U.S.$ 46.25 million) towards milestone payments, interest, and fees. The Company was carrying Rs. 1,471 million (U.S.$ 20 million) as the provision towards this litigation. As this constitutes an adjusting subsequent event, the consolidated financial results for the quarter and year ended 31 March 2021 were adjusted to reflect the impact of this event by recognizing the balance amount of Rs. 1,911 million (U.S.$ 26.25 million) in the financial results. Of the total amount, Rs. 1,820 million (U.S.$ 25 million) was recognised under heading "Impairment of non-current assets" and the balance Rs. 91 million (U.S.$ 1.25 million) was recognised under the heading "Selling, general and administrative expenses". The said expense forms part of the Company’s Proprietary Products segment.

	All amounts in Indian Rupees millions
	As at			As at
Particulars	31.03.2022			31.03.2021
		(Audited)			(Audited)
ASSETS
Current assets
Cash and cash equivalents		14,852			14,829
Other investments		29,513			19,744
Trade and other receivables		66,764			49,641
Inventories		50,884			45,412
Derivative financial instruments		1,906			1,218
Tax assets		3,285			2,745
Other current assets		13,902			14,509
Total current assets before assets held for sale		181,106			148,098
Assets held for sale		-			151
Total current assets		181,106			148,249
Non-current assets
Property, plant and equipment		62,169			57,111
Goodwill		4,418			4,568
Other intangible assets		27,246			35,648
Trade and other receivables		54			118
Investment in equity accounted investees		4,318			3,375
Other investments		3,668			4,958
Deferred tax assets		12,781			10,630
Other non-current assets		894			834
Total non-current assets		115,548			117,242
Total assets		296,654			265,491

LIABILITIES AND EQUITY
Current liabilities
Trade and other payables		25,572			23,744
Short-term borrowings		27,082			23,136
Long-term borrowings, current portion		1,017			864
Provisions		4,258			3,435
Tax liabilities		5,442			1,389
Derivative financial instruments		479			326
Bank overdraft		-			9
Other current liabilities		33,992			30,488
Total current liabilities		97,842			83,391
Non-current liabilities
Long-term borrowings		5,746			6,299
Deferred tax liabilities		60			338
Provisions		57			58
Other non-current liabilities		2,422			2,343
Total non-current liabilities		8,285			9,038
Total liabilities		106,127			92,429
Equity
Share capital		832			832
Treasury shares		(1,601	)		(1,967	)
Share premium		9,280			8,887
Share based payment reserve		1,628			1,461
Capital redemption reserve		173			173
Debenture redemption reserve		304			-
Special economic zone re-investment reserve		755			1,326
Retained earnings		175,712			156,023
Other components of equity		3,444			6,327
Total equity		190,527			173,062
Total liabilities and equity		296,654			265,491

	16	India’s Code on Social Security, 2020, which aims to consolidate, codify and revise certain existing social security laws, received Presidential assent in September 2020 and has been published in the Gazette of India. However, the related final rules have not yet been issued and the date on which this Code will come into effect has not been announced. The Company will assess the impact of this Code and the rules thereunder when they come into effect.

	17	The Company considered the uncertainties relating to the COVID-19 pandemic and the geopolitical situation in 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.

	18	The audited results were reviewed by the Audit Committee of the Board at their meeting held on 18 May 2022 and approved by the Board of Directors of the Company at their meeting held on 19 May 2022.

	19	The Board of Directors, at their meeting held on 19 May 2022, have recommended a final dividend of Rs.30 per share subject to approval of shareholders.

	20	The figures of the fourth quarter are the balancing figures between audited figures in respect of the full financial year and the published year to date figures upto the third quarter of the relevant financial year. Also the figures upto the end of third quarter were only reviewed and not subjected to audit.

	21	The results for the quarter and year ended 31 March 2022 periods presented have been audited by the Independent Auditors of the Company. An unqualified report has been issued by them thereon.

Place: Hyderabad	G V Prasad
Date: 19 May 2022	Co-Chairman & Managing Director

	Subsidiaries
	1	Aurigene Discovery Technologies Limited
	2	Cheminor Investments Limited
	3	Dr. Reddy’s Bio-Sciences Limited
	4	Dr. Reddy’s Formulations Limited
	5	Dr. Reddy’s Farmaceutica Do Brasil Ltda.
	6	Dr. Reddy's Laboratories SA
	7	Idea2Enterprises (India) Private Limited
	8	Imperial Credit Private Limited
	9	Industrias Quimicas Falcon de Mexico, S.A.de C.V.
	10	Svaas Wellness Limited (Formerly known as Regkinetics Services Limited)
	11	Aurigene Discovery Technologies (Malaysia) Sdn. Bhd.
	12	Aurigene Discovery Technologies Inc.(liquidated on 23 March 2022)
	13	Aurigene Pharmaceutical Services Limited
	14	beta Institut gemeinnützige GmbH
	15	betapharm Arzneimittel GmbH
	16	Chirotech Technology Limited
	17	DRL Impex Limited
	18	Dr. Reddy’s Laboratories (Australia) Pty. Limited
	19	Dr. Reddy’s (Beijing) Pharmaceutical Co. Limited
	20	Dr. Reddy’s Laboratories B.V.
	21	Dr. Reddy’s Laboratories Canada, Inc.
	22	Dr. Reddy's Laboratories Chile SPA.
	23	Dr. Reddy’s Laboratories (EU) Limited
	24	Dr. Reddy’s Laboratories Inc.
	25	Dr. Reddy's Laboratories Japan KK
	26	Dr. Reddy’s Laboratories Kazakhstan LLP

	27	Dr. Reddy’s Laboratories LLC, Ukraine
	28	Dr. Reddy's Laboratories Louisiana LLC
	29	Dr. Reddy’s Laboratories Malaysia Sdn. Bhd.
	30	Dr. Reddy’s Laboratories New York, LLC
	31	Dr. Reddy's Laboratories Philippines Inc.
	32	Dr. Reddy’s Laboratories (Proprietary) Limited
	33	Dr. Reddy's Laboratories Romania S.R.L.
	34	Dr. Reddy's Laboratories SAS
	35	Dr. Reddy's Laboratories Taiwan Limited
	36	Dr. Reddy's Laboratories (Thailand) Limited
	37	Dr. Reddy’s Laboratories (UK) Limited
	38	Dr. Reddy’s New Zealand Limited
	39	Dr. Reddy’s (WUXI) Pharmaceutical Co. Ltd (liquidated on 13 December 2021)
	40	Dr. Reddy's Research and Development B.V.
	41	Dr. Reddy’s Srl
	42	Dr. Reddy's Venezuela, C.A.
	43	Lacock Holdings Limited
	44	Dr. Reddy's Laboratories LLC, Russia
	45	DRS LLC
	46	Promius Pharma LLC
	47	Reddy Holding GmbH
	48	Reddy Netherlands B.V.
	49	Reddy Pharma Iberia SAU
	50	Reddy Pharma Italia S.R.L
	51	Reddy Pharma SAS
	52	Nimbus Health GmbH (from 24 February 2022)

	Joint ventures
	1	DRES Energy Private Limited
	2	Kunshan Rotam Reddy Pharmaceutical Company Limited

	Other consolidating entities
	1	Cheminor Employees Welfare Trust
	2	Dr. Reddy's Research Foundation

	By order of the Board
	For Dr. Reddy's Laboratories Limited


Place: Hyderabad	G V Prasad
Date: 19 May 2022	Co-Chairman & Managing Director

For S.R. BATLIBOI & ASSOCIATES LLP
Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004


per Shankar Srinivasan
Partner
Membership No.: 213271

UDIN: 22213271AJFKTD1221

Place: Hyderabad
Date: May 19, 2022

Segment information									All amounts in Indian Rupees millions
			Quarter ended								Year ended
Sl. No.		Particulars	31.03.2022			31.12.2021			31.03.2021		31.03.2022		31.03.2021
			(Audited)			(Unaudited)			(Audited)		(Audited)		(Audited)
		Segment wise revenue and results
	1	Segment revenue
		a) Pharmaceutical Services and Active Ingredients		7,932			7,305			8,993		31,718		33,458
		b) Global Generics		30,255			28,997			26,144		116,999		106,467
		c) Proprietary Products		199			110			251		1,590		471
		Total		38,386			36,412			35,388		150,307		140,396

		Less: Inter-segment revenue		1,699			1,616			1,881		6,255		6,905
		Total revenue from operations		36,687			34,796			33,507		144,052		133,491

	2	Segment results
		Profit / (loss) before tax and interest from each segment
		a) Pharmaceutical Services and Active Ingredients		(322	)		(226	)		1,227		384		7,486
		b) Global Generics		5,944			5,312			3,565		21,871		23,928
		c) Proprietary Products		129			36			44		1,160		(631	)
		Total		5,751			5,122			4,836		23,415		30,783

		Less: (i) Finance costs		127			77			169		380		467
		(ii) Other un-allocable expenditure / (income), net		(43	)		406			98		797		(246	)
		Total profit before tax		5,667			4,639			4,569		22,238		30,562