On consolidated basis

Quarter ended September 2024 compared with Quarter ended September 2023.

Net sales (including other operating income) of Dr Reddys Laboratories has increased 16.45% to Rs 8038.2 crore.  Sales of Pharmaceutical Services segment has gone up 16.26% to Rs 1,119.00 crore (accounting for 13.48% of total sales).  Sales of Global Generics segment has gone up 17.19% to Rs 7,163.60 crore (accounting for 86.30% of total sales).  Sales of Others segment has gone down 73.79% to Rs 17.90 crore (accounting for 0.22% of total sales).  Inter-segment sales rose Rs 241.20 crore to Rs 262.30 crore.  

Profit before interest, tax and other unallocable items (PBIT) has jumped 18.32% to Rs 4,777.20 crore.  PBIT of Pharmaceutical Services segment rose 100.08% to Rs 252.10 crore (accounting for 5.28% of total PBIT).  PBIT of Global Generics segment rose 16.18% to Rs 4,516.20 crore (accounting for 94.54% of total PBIT).  PBIT of Others segment fell 63.22% to Rs 8.90 crore (accounting for 0.19% of total PBIT).  

PBIT margin of Pharmaceutical Services segment rose from 13.09% to 22.53%.  PBIT margin of Global Generics segment fell from 63.59% to 63.04%.  PBIT margin of Others segment rose from 35.43% to 49.72%.  Overall PBIT margin rose from 56.52% to 57.55%.  

Operating profit margin has declined from 29.09% to 25.83%, leading to 3.40% rise in operating profit to Rs 2,076.50 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 13.67% to 15.62%.   Purchase of finished goods cost fell from 16.27% to 15.57%.   Employee cost decreased from 18.31% to 16.98%.   Other expenses rose from 23.04% to 26.64%.   Provisions writeoffs cost rose from 0.08% to 1.12%.   Other provisions rose from 0.08% to 1.12%.   

Other income fell 2.38% to Rs 307.5 crore.  PBIDT rose 2.61% to Rs 2384 crore.  Provision for interest rose 114.45% to Rs 75.7 crore.  Loan funds rose to Rs 4,854.10 crore as of 30 September 2024 from Rs 1,323.00 crore as of 30 September 2023.  Inventories rose to Rs 7,203.90 crore as of 30 September 2024 from Rs 5,659.20 crore as of 30 September 2023.  Sundry debtors were higher at Rs 8,439.80 crore as of 30 September 2024 compared to Rs 6,972.20 crore as of 30 September 2023.  Cash and bank balance declined from Rs 2,927.90 crore as of 30 September 2023 to Rs 2,028.40 crore as of 30 September 2024.  Investments declined from Rs 4,457.40 crore as of 30 September 2023 to Rs 3,662.60 crore as of 30 September 2024.  

PBDT rose 0.89% to Rs 2308.3 crore.  Provision for depreciation rose 5.73% to Rs 397 crore.  Fixed assets increased to Rs 17,790.30 crore as of 30 September 2024 from Rs 7,001.00 crore as of 30 September 2023.  Intangible assets declined from Rs 4,240.30 crore to Rs 1,315.90 crore.  

Profit before tax down 0.06% to Rs 1,911.30 crore.  Share of profit/loss was 45.24% higher at Rs 6.1 crore.  Provision for tax was expense of Rs 575.5 crore, compared to Rs 434.5 crore.  Effective tax rate was 30.01% compared to 22.67%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company decreased 15.28% to Rs 1,255.70 crore.  

Equity capital stood at Rs 83.40 crore as of 30 September 2024 to Rs 83.40 crore as of 30 September 2023.  Per share face Value remained same at Rs 5.00.  

Promoters’ stake was 26.64% as of 30 September 2024 ,compared to 26.66% as of 30 September 2023 .  

For year-to-date (YTD) results analysis.

Net sales (including other operating income) of Dr Reddys Laboratories has increased 15.18% to Rs 15734.3 crore.  Sales of Pharmaceutical Services segment has gone up 14.07% to Rs 2,166.20 crore (accounting for 13.32% of total sales).  Sales of Global Generics segment has gone up 15.92% to Rs 14,056.50 crore (accounting for 86.44% of total sales).  Sales of Others segment has gone down 69.36% to Rs 39.10 crore (accounting for 0.24% of total sales).  Inter-segment sales rose Rs 492.10 crore to Rs 527.50 crore.  

Profit before interest, tax and other unallocable items (PBIT) has jumped 17.75% to Rs 9,412.00 crore.  PBIT of Pharmaceutical Services segment rose 88.87% to Rs 429.30 crore (accounting for 4.56% of total PBIT).  PBIT of Global Generics segment rose 16.08% to Rs 8,968.00 crore (accounting for 95.28% of total PBIT).  PBIT of Others segment fell 63.07% to Rs 14.70 crore (accounting for 0.16% of total PBIT).  

PBIT margin of Pharmaceutical Services segment rose from 11.97% to 19.82%.  PBIT margin of Global Generics segment rose from 63.71% to 63.80%.  PBIT margin of Others segment rose from 31.19% to 37.60%.  Overall PBIT margin rose from 56.48% to 57.88%.  

Operating profit margin has declined from 29.80% to 26.73%, leading to 3.34% rise in operating profit to Rs 4,206.40 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 16.11% to 15.37%.   Purchase of finished goods cost rose from 14.41% to 16.27%.   Employee cost decreased from 17.66% to 17.19%.   Other expenses rose from 22.73% to 25.46%.   Provisions writeoffs cost rose from 0.05% to 0.57%.   Other provisions rose from 0.05% to 0.57%.   

Other income rose 1.17% to Rs 494.7 crore.  PBIDT rose 3.11% to Rs 4701.1 crore.  Provision for interest rose 87.15% to Rs 135.5 crore.  Loan funds rose to Rs 4,854.10 crore as of 30 September 2024 from Rs 1,323.00 crore as of 30 September 2023.  Inventories rose to Rs 7,203.90 crore as of 30 September 2024 from Rs 5,659.20 crore as of 30 September 2023.  Sundry debtors were higher at Rs 8,439.80 crore as of 30 September 2024 compared to Rs 6,972.20 crore as of 30 September 2023.  Cash and bank balance declined from Rs 2,927.90 crore as of 30 September 2023 to Rs 2,028.40 crore as of 30 September 2024.  Investments declined from Rs 4,457.40 crore as of 30 September 2023 to Rs 3,662.60 crore as of 30 September 2024.  

PBDT rose 1.75% to Rs 4565.6 crore.  Provision for depreciation rose 6.70% to Rs 777.6 crore.  Fixed assets increased to Rs 17,790.30 crore as of 30 September 2024 from Rs 7,001.00 crore as of 30 September 2023.  Intangible assets declined from Rs 4,240.30 crore to Rs 1,315.90 crore.  

Profit before tax grew 0.79% to Rs 3,788.00 crore.  Share of profit/loss was 41.18% higher at Rs 12 crore.  Provision for tax was expense of Rs 1065.7 crore, compared to Rs 879.5 crore.  Effective tax rate was 28.04% compared to 23.35%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company decreased 8.28% to Rs 2,648.10 crore.  

Equity capital stood at Rs 83.40 crore as of 30 September 2024 to Rs 83.40 crore as of 30 September 2023.  Per share face Value remained same at Rs 5.00.  

Promoters’ stake was 26.64% as of 30 September 2024 ,compared to 26.66% as of 30 September 2023 .  

Cash flow from operating activities decreased to Rs 1,781.20 crore for YTD ended September 2024 from Rs 2,917.60 crore for YTD ended September 2023.  Cash flow used in acquiring fixed assets during the YTD ended September 2024 stood at Rs 1,433.30 crore, compared to Rs 1,611.00 crore during the YTD ended September 2023.  

Full year results analysis.

Net sales (including other operating income) of Dr Reddys Laboratories has increased 13.54% to Rs 28011.1 crore.  Sales of Pharmaceutical Services segment has gone up 11.02% to Rs 4,129.50 crore (accounting for 14.20% of total sales).  Sales of Global Generics segment has gone up 14.83% to Rs 24,567.30 crore (accounting for 84.46% of total sales).  Sales of Others segment has gone up 25.46% to Rs 392.20 crore (accounting for 1.35% of total sales).  Inter-segment sales rose Rs 757.70 crore to Rs 1,077.90 crore.  

Profit before interest, tax and other unallocable items (PBIT) has jumped 17.41% to Rs 16,362.40 crore.  PBIT of Pharmaceutical Services segment rose 46.40% to Rs 692.90 crore (accounting for 4.23% of total PBIT).  PBIT of Global Generics segment rose 16.24% to Rs 15,427.20 crore (accounting for 94.28% of total PBIT).  PBIT of Others segment rose 26.93% to Rs 242.30 crore (accounting for 1.48% of total PBIT).  

PBIT margin of Pharmaceutical Services segment rose from 12.72% to 16.78%.  PBIT margin of Global Generics segment rose from 62.03% to 62.80%.  PBIT margin of Others segment rose from 61.07% to 61.78%.  Overall PBIT margin rose from 54.81% to 56.25%.  

Operating profit margin has jumped from 25.74% to 28.32%, leading to 24.95% rise in operating profit to Rs 7,933.10 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 17.15% to 15.65%.   Purchase of finished goods cost rose from 13.69% to 15.33%.   Employee cost decreased from 18.89% to 17.53%.   Other expenses fell from 24.46% to 23.84%.   

Other income fell 15.27% to Rs 894.3 crore.  PBIDT rose 19.22% to Rs 8827.4 crore.  Provision for interest rose 19.82% to Rs 171.1 crore.  Loan funds rose to Rs 2,002.00 crore as of 31 March 2024 from Rs 1,347.20 crore as of 31 March 2023.  Inventories rose to Rs 6,355.20 crore as of 31 March 2024 from Rs 4,867.00 crore as of 31 March 2023.  Sundry debtors were higher at Rs 8,029.80 crore as of 31 March 2024 compared to Rs 7,248.50 crore as of 31 March 2023.  Cash and bank balance declined from Rs 1,730.20 crore as of 31 March 2023 to Rs 1,727.70 crore as of 31 March 2024.  Investments declined from Rs 4,985.80 crore as of 31 March 2023 to Rs 4,930.50 crore as of 31 March 2024.  

PBDT rose 19.20% to Rs 8656.3 crore.  Provision for depreciation rose 17.58% to Rs 1470 crore.  Fixed assets increased to Rs 11,294.80 crore as of 31 March 2024 from Rs 9,701.80 crore as of 31 March 2023.  Intangible assets increased from Rs 547.40 crore to Rs 550.10 crore.  

Profit before tax grew 19.54% to Rs 7,186.30 crore.  Share of profit/loss was 60.27% lower at Rs 14.7 crore.  Provision for tax was expense of Rs 1623.1 crore, compared to Rs 1541.2 crore.  Effective tax rate was 22.54% compared to 25.48%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 23.75% to Rs 5,577.90 crore.  

Equity capital increased from Rs 83.30 crore as of 31 March 2023 to Rs 83.40 crore as of 31 March 2024.  Per share face Value remained same at Rs 5.00.  

Promoters’ stake was 26.65% as of 31 March 2024 ,compared to 26.70% as of 31 March 2023 .  

Cash flow from operating activities decreased to Rs 4,543.30 crore for year ended March 2024 from Rs 5,887.50 crore for year ended March 2023.  Cash flow used in acquiring fixed assets during the year ended March 2024 stood at Rs 2,743.50 crore, compared to Rs 1,886.60 crore during the year ended March 2023.  

Other Highlights

In Q2 FY25, Global generics segment grew 17% YoY, North America grew 17% YoY, Europe up 9% YoY, India up 18% YoY, Emerging markets up 20% YoY and PSAI up 20% YoY.

In H1 FY25, Global generics segment grew 16% YoY, North America grew 19% YoY, Europe up 7% YoY, India up 17% YoY, Emerging markets up 11% YoY and PSAI up 17% YoY.

In Q2 FY25, North America contributed 47% of total revenue, Europe 7%, India 17%, Emerging markets 18%, PSAI 11%.

In H1 FY25, North America contributed 48% of total revenue, Europe 7%, India 17%, Emerging markets 17%, PSAI 11%.

In Q2 FY25, R&D Expenses stood at Rs 727.1 crore, representing 9.1% of revenue.

Management Comments :
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 Nestle 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."

Dr Reddys Laboratories : Consolidated Results

Quarter ended Year to Date Year ended Particulars 202409 202309 Var.(%) 202409 202309 Var.(%) 202403 202303 Var.(%) Net Sales (including other operating income) 8,038.20 6,902.60 16.45 15,734.30 13,660.50 15.18 28,011.10 24,669.70 13.54 OPM (%) 25.83 29.09 -326 bps 26.73 29.80 -306 bps 28.32 25.74 259 bps OP 2,076.50 2,008.30 3.40 4,206.40 4,070.40 3.34 7,933.10 6,349.00 24.95 Other Inc. 307.50 315.00 -2.38 494.70 489.00 1.17 894.30 1,055.50 -15.27 PBIDT 2,384.00 2,323.30 2.61 4,701.10 4,559.40 3.11 8,827.40 7,404.50 19.22 Interest 75.70 35.30 114.45 135.50 72.40 87.15 171.10 142.80 19.82 PBDT 2,308.30 2,288.00 0.89 4,565.60 4,487.00 1.75 8,656.30 7,261.70 19.20 Depreciation 397 375.5 5.73 777.6 728.8 6.70 1470 1250.2 17.58 PBT 1,911.30 1,912.50 -0.06 3788 3758.2 0.79 7186.3 6011.5 19.54 Share of Profit/(Loss) from Associates 6.1 4.2 45.24 12 8.5 41.18 14.7 37 -60.27 PBT before EO 1917.4 1916.7 0.04 3800 3766.7 0.88 7201 6048.5 19.05 EO Income 0 0 - 0 0 - 0 0 - PBT after EO 1917.4 1916.7 0.04 3800 3766.7 0.88 7201 6048.5 19.05 Taxation 575.5 434.5 32.45 1065.7 879.5 21.17 1623.1 1541.2 5.31 PAT 1341.9 1482.2 -9.47 2734.3 2887.2 -5.30 5577.9 4507.3 23.75 Minority Interest (MI) 86.2 0 - 86.2 0 - 0 0 - Net profit 1255.7 1482.2 -15.28 2648.1 2887.2 -8.28 5577.9 4507.3 23.75 P/(L) from discontinued operations net of tax 0 0 - 0 0 - 0 0 - Net profit after discontinued operations 1255.7 1482.2 -15.28 2648.1 2887.2 -8.28 5577.9 4507.3 23.75 EPS (Rs)* 15.05 17.76 -15.28 31.74 34.60 -8.28 66.85 54.02 23.75 * EPS is on current equity of Rs 83.44 crore, Face value of Rs 1, Excluding extraordinary items. # EPS is not annualised bps : Basis points EO : Extraordinary items Figures in Rs crore Source: Capitaline Corporate Database

Dr Reddys Laboratories : Consolidated Segment Results

Quarter ended Year to Date Year ended % of (Total) 202409 202309 Var.(%) % of (Total) 202409 202309 Var.(%) % of (Total) 202403 202303 Var.(%) Sales Pharmaceutical Services 13.48 1,119.00 962.50 16.26 13.32 2,166.20 1,899.00 14.07 14.20 4,129.50 3,719.50 11.02 Global Generics 86.30 7,163.60 6,113.00 17.19 86.44 14,056.50 12,126.00 15.92 84.46 24,567.30 21,395.30 14.83 Proprietary Products 0.00 0.00 0.00 - Others 0.22 17.90 68.30 -73.79 0.24 39.10 127.60 -69.36 1.35 392.20 312.60 25.46 Total Reported Sales 100.00 8,300.50 7,143.80 16.19 100.00 16,261.80 14,152.60 14.90 100.00 29,089.00 25,427.40 14.40 Less: Inter segment revenues   262.30 241.20 8.75   527.50 492.10 7.19   1,077.90 757.70 42.26 Net Sales 100.00 8,038.20 6,902.60 16.45 100.00 15,734.30 13,660.50 15.18 100.00 28,011.10 24,669.70 13.54 PBIT Pharmaceutical Services 5.28 252.10 126.00 100.08 4.56 429.30 227.30 88.87 4.23 692.90 473.30 46.40 Global Generics 94.54 4,516.20 3,887.20 16.18 95.28 8,968.00 7,725.80 16.08 94.28 15,427.20 13,271.90 16.24 Proprietary Products 0.00 0.00 0.00 - Others 0.19 8.90 24.20 -63.22 0.16 14.70 39.80 -63.07 1.48 242.30 190.90 26.93 Total PBIT 100.00 4,777.20 4,037.40 18.32 100.00 9,412.00 7,992.90 17.75 100.00 16,362.40 13,936.10 17.41 Less : Interest 0.00 0.00 - 0.00 0.00 - 0.00 0.00 - Add: Other un-allcoable -2,859.80 -2,120.70 -34.85 -5,612.00 -4,226.20 -32.79 -9,161.40 -7,887.60 -16.15 PBIT Margin(%) Pharmaceutical Services   22.53 13.09 943.81   19.82 11.97 784.87   16.78 12.72 405.44 Global Generics   63.04 63.59 -54.54   63.80 63.71 8.70   62.80 62.03 76.38 Proprietary Products   0.00 0.00 0.00 Others   49.72 35.43 1,428.88   37.60 31.19 640.47   61.78 61.07 71.12 PBT 100.00 1,917.40 1,916.70 0.04 100.00 3,800.00 3,766.70 0.88 100.00 7,201.00 6,048.50 19.05