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DR. REDDY'S LABORATORIES LTD.
, Road No. 3, Banjara Hills, Hyderabad - 500034. Telangana, India.
Dr. Reddy's Q3 and 9M FY17 Financial Results Q3 Revenues at `37.1 Bn[QoQ growth: 3%]
Q3 EBITDA at `8.8 Bn[23.7% of Revenues]
9M Revenues at `105.3 Bn[YoY decline: 10%]
9M EBITDA at `19.2 Bn[18.2% of Revenues]
Hyderabad, India, February 4, 2017: Dr. Reddy's Laboratories Ltd. (BSE: 500124 | NSE: DRREDDY | NYSE: RDY) today announced its consolidated financial results for the third quarter and nine months ended December 31, 2016 under International Financial Reporting Standards (IFRS).
Q3 FY17: Key Highlights
Revenues at `37.1 billion: QoQ growth: 3%
YoY decline: 7%
Gross Profit Margin at 59.1%.
Research & Development (R&D) spend at `5.0 billion. [13.4% of Revenues]
Selling, general & administrative (SG&A) expenses at `11.3 billion [YoY decline: 6%]
EBITDA at `8.8 billion [23.7% of Revenues]
Profit after tax at `4.7 billion [12.7% of Revenues]
9M FY17: Key Highlights
Revenues at `105.3 billion: YoY decline: 10%
Gross Profit Margin at 57.2%.
Research & Development (R&D) spend at `15.0 billion. [14.2% of Revenues]
Selling, general & administrative (SG&A) expenses at `35.4 billion [YoY increase: 4%]
EBITDA at `19.2 billion [18.2% of Revenues]
Profit after tax at `8.9 billion [8.5% of Revenues]
Commenting on the results, Co-chairman and CEO, G V Prasad said "Our performance in Q3 has delivered a modest sequential revenue growth of 3% over the previous quarter. Our EBITDA has improved significantly from the last quarter to Rs. 8.8 billion, on the back of enhanced emphasis on operational efficiencies and controlling of SG&A costs across all our businesses."
Dr. Reddy's Laboratories Limited and Subsidiaries Consolidated Income StatementParticulars | Q3 FY17 | Q3 FY16 | Growth % | ||||
($) | (Rs.) | % | ($) | (Rs.) | % | ||
Revenue | 546 | 37,065 | 100.0 | 584 | 39,679 | 100.0 | (7) |
Cost of revenues | 223 | 15,166 | 40.9 | 237 | 16,089 | 40.5 | (6) |
Gross profit | 322 | 21,899 | 59.1 | 347 | 23,590 | 59.5 | (7) |
Operating Expenses | 167 | 11,341 | 30.6 | 177 | 12,039 | 30.3 | (6) |
Selling, general & administrative expenses | |||||||
Research and development expenses | 73 | 4,956 | 13.4 | 60 | 4,095 | 10.3 | 21 |
Other operating income | (3) | (187) | (0.5) | (2) | (122) | (0.3) | 53 |
Results from operating activities | 85 | 5,789 | 15.6 | 112 | 7,578 | 19.1 | (24) |
Net finance (income) / expense | (1) | (44) | (0.1) | 1 | 62 | 0.2 | 171 |
Share of profit of equity accounted investees | (1) | (89) | (0.2) | (1) | (64) | (0.2) | 38 |
Profit before income tax | 87 | 5,922 | 16.0 | 112 | 7,580 | 19.1 | (22) |
Income tax expense | 18 | 1,221 | 3.3 | 26 | 1,788 | 4.5 | (32) |
Profit for the period | 69 | 4,701 | 12.7 | 85 | 5,792 | 14.6 | (19) |
- -
Diluted EPS | 0.42 | 28.32 | 0.50 | 33.86 | (16) |
Particulars | Q3 FY 17 | Q3 FY 16 | ||
$ | Rs. | $ | Rs. | |
Profit before income tax | 87 | 5,922 | 112 | 7,580 |
Interest income, net* | (1) | (53) | (3) | (236) |
Depreciation | 29 | 1,936 | 25 | 1,685 |
Amortization / Impairment | 15 | 988 | 16 | 1086 |
EBITDA | 129 | 8,793 | 149 | 10,115 |
EBITDA% to Revenues | 23.7% | 25.5% |
* Includes income from Investments
Key Balance Sheet Items
Particulars | As on 31stDec 16 | As on 30thSep 16 | ||
($) | (Rs.) | ($) | (Rs.) | |
Cash and cash equivalents and Other current Investments | 297 | 20,145 | 315 | 21,379 |
Trade Receivables | 605 | 41,119 | 544 | 36,939 |
Inventories | 442 | 30,052 | 420 | 28,516 |
Property, plant and equipment | 842 | 57,209 | 825 | 56,052 |
Goodwill and Other Intangible assets | 736 | 49,977 | 747 | 50,766 |
Loans and borrowings (current & non-current) | 854 | 57,999 | 890 | 60,480 |
Trade & other payables | 196 | 13,308 | 181 | 12,281 |
Equity | 1,782 | 121,040 | 1,697 | 115,264 |
Revenue Mix by Segment [Year on year]
Particulars | Q3 FY17 | Q3 FY16 | Growth % | ||||
($) | (Rs.) | % | ($) | (Rs.) | % | ||
Global Generics | 451 | 30,638 | 83 | 494 | 33,558 | 84 | -9 |
North America | 16,595 | 19,417 | -15 | ||||
Europe* | 2,148 | 1,937 | 11 | ||||
India | 5,947 | 5,805 | 2 | ||||
Emerging Markets# | 5,948 | 6,399 | -7 | ||||
PSAI | 80 | 5,400 | 14 | 75 | 5,082 | 13 | 6 |
North America | 1,259 | 1,037 | 21 | ||||
Europe | 1,828 | 1,951 | -6 | ||||
India | 409 | 622 | -34 | ||||
Rest of World | 1,904 | 1,472 | 29 | ||||
Proprietary Products & Others | 15 | 1,027 | 3 | 15 | 1,039 | 3 | -1 |
Total | 546 | 37,065 | 100 | 584 | 39,679 | 100 | -7 |
Revenue Mix by Segment [Sequential]
Particulars | Q3 FY 17 | Q2 FY 17 | Growth % | ||||
($) | (Rs.) | % | ($) | (Rs.) | % | ||
Global Generics | 451 | 30,638 | 83 | 427 | 28,995 | 81 | 6 |
North America | 16,595 | 16,134 | 3 | ||||
Europe* | 2,148 | 1,776 | 21 | ||||
India | 5,947 | 6,251 | -5 | ||||
Emerging Markets# | 5,948 | 4,834 | 23 | ||||
PSAI | 80 | 5,400 | 14 | 85 | 5,784 | 16 | -7 |
North America | 1,259 | 1,135 | 11 | ||||
Europe | 1,828 | 2,095 | -13 | ||||
India | 409 | 575 | -29 | ||||
Rest of World | 1,904 | 1,979 | -4 | ||||
Proprietary Products & Others | 15 | 1,027 | 3 | 16 | 1,078 | 3 | -5 |
Total | 546 | 37,065 | 100 | 528 | 35,857 | 100 | 3 |
Europe primarily includes Germany, UK and out licensing sales business
# Emerging Markets refers to Russia, other CIS countries, Romania and Rest of the World markets including Venezuela
Segmental Analysis
Global Generics (GG)
Revenues from GG segment at `30.6 billion, year-on-year decline of 9%; primarily on account of lower contribution from North America and Venezuela. However, it grew by 6% sequentially.
Revenues from North America at `16.6 billion. Year-on-year decline of 15%, primarily on account of increased competition in valgancyclovir and our injectables franchise coupled with continuing pricing pressure.
During the quarter we launched 5 new products i.e. Aripiprazole, Lamotrigene ODT, Fluoxetine Tabs, Raloxifene HCl and Nystatin - Triamcinolone Cream.
As of 31stDecember 2016, cumulatively 92 generic filings are pending for approval with the USFDA (90 ANDAs and 2 NDAs under 505(b)(2) route). Of these 90 ANDAs, 59 are Para IVs out of which we believe 20 have 'First to File' status. Further, these 90 ANDAs include 7 ANDAs, acquired from Teva, of which 6 are Para IVs.
Revenues from Emerging Markets at `5.9 billion, year-on-year decline of 7%. [Ex-Venezuela: growth of 7%]
Revenues from Russia at `3.1 billion, year-on-year decline of 2%. In constant currency it declined by 5%.
Revenues from other CIS countries and Romania market at `1.0 billion, year-on-year growth of 16%.
Revenues from Rest of World (RoW) territories at `1.8 billion, year-on-year decline of 23% primarily on account of sales decline in Venezuela.
Revenues from India at `5.9 billion, year-on-year growth: 2.4%.
Revenues from Europe at `2.1 billion, year-on-year growth: 11%.
Pharmaceutical Services and Active Ingredients (PSAI)
Revenues from PSAI at `5.4 billion, year-on-year growth of 6%. On a sequential basis revenues declined by 7%.
During the quarter, 16 DMFs were filed globally of which 1 was in the US. The cumulative number of DMF filings as of 31stDecember, 2016 was 782.
Proprietary Products (PP)
Zembrace™Sym Touch ™(Suma 3 mg) injection and Sernivo™ (betamethasone dipropionate) Spray, 0.05% are gradually gaining traction in prescriptions.
Dr. Reddy's Laboratories Limited published this content on 04 February 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 06 February 2017 08:17:02 UTC.
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