- Consolidated Revenues at Rs. 33.2 billion, year-on-year growth of 3%
- Gross Profit Margin at 51.6%, declined ~460 bps over last year
- Research & Development (R&D) spend at Rs. 5.1 billion, 15.3% of Revenues
- Selling, general & administrative (SG&A) expenses at Rs. 11.8 billion, year on year decline of 4%
- EBITDA at Rs. 3.4 billion, 10.1% of Revenues
- Profit after tax at Rs. 0.6 billion, 1.8% of Revenues
|All amounts in millions, except EPS|
|All US dollar amounts based on convenience translation rate of I USD = Rs. 64.62|
|Dr. Reddy's Laboratories Limited and Subsidiaries|
|Consolidated Income Statement|
|Particulars||Q1 FY 18||Q1 FY 17||Growth %|
|Cost of revenues||249||16,062||48.4||219||14,167||43.8||13|
|Selling, general & administrative expenses||182||11,763||35.5||190||12,284||38.0||(4||)|
|Research and development expenses||79||5,075||15.3||74||4,802||14.8||6|
|Other operating expense / (income)||(3||)||(194||)||(0.6||)||-1||(96||)||(0.3||)||102|
|Results from operating activities||7||453||1.4||18||1,188||3.7||(62||)|
|Finance expense / (income), net||(3||)||(221||)||(0.7||)||-7||(445||)||(1.4||)||(50||)|
|Share of (profit) of equity accounted investees, net of income tax||(2||)||(98||)||(0.3||)||-1||(74||)||(0.2||)||33|
|Profit before income tax||12||772||2.3||26||1,707||5.3||(55||)|
|Income tax expense||3||181||0.5||7||444||1.4||(59||)|
|Profit for the period||9||591||1.8||20||1,263||3.9||(53||)|
|Particulars||Q1 FY 18||Q1 FY 17|
|Profit before income tax||12||772||26||1,707|
|Interest (income) / expense net*||(3||)||(211||)||(6||)||(409||)|
|EBITDA (% to Revenues)||10.1||12.3|
|* Includes income from investments|
|Key Balance Sheet Items|
|Particulars||As on 30 th June 17||As on 31 st March 17|
|Cash and cash equivalents and Other current Investments||226||14,572||281||18,136|
|Property, plant and equipment||892||57,611||885||57,160|
|Goodwill and Other Intangible assets||752||48,564||753||48,677|
|Loans and borrowings (current & non-current)||781||50,462||761||49,185|
|Revenue Mix by Segment|
|Particulars||Q1 FY 18||Q1 FY 17||Growth %|
|Emerging Markets #||5,747||4,277||34|
|Rest of World||1,555||1,730||(10||)|
|Proprietary Products & Others||16||1,053||3||16||1,015||3||4|
|* 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|
- Revenues from North America at Rs. 14.9 billion, declined 4% year-on-year. This is primarily on account of higher price erosion, increased competition in our key products namely Valganciclovir, Decitabine, Azacitidine etc. and discontinuation of the McNeil business. This was partially offset by contribution from new launches. During the quarter we launched 4 new products - Ezetimibe+Simvastatin, Liposomal Doxorubicin, Progesterone, and Bivalirudin injection. As of 30 th June, 2017, cumulatively 99 generic filings are pending for approval with the USFDA (97 ANDAs and 2 NDAs under 505(b)(2) route). Of these 97 ANDAs, 59 are Para IVs out of which we believe 26 to have 'First to File' status.
- Revenues from Emerging Markets at Rs. 5.7 billion, grew 34% year-on-year.
- Revenues from Russia at Rs. 3.5 billion, grew 48% year-on-year in reporting currency and 31% in Ruble terms. Growth driven by higher improvement in base business and Rituximab supplies under the tender.
- Revenues from other CIS countries and Romania market at Rs. 0.9 billion, grew by 28% year-on-year led by volume growth.
- Revenues from Rest of World (RoW) territories at Rs. 1.4 billion, grew by 13% year-on-year.
- Revenues from India at Rs. 4.7 billion, declined 10% year-on-year. Decline primarily on account of channel destocking during the transition to the GST regime.
- Revenues from Europe at Rs. 2.1 billion, grew by 28% year-on-year in reporting currency and 37% in constant currency. Growth driven by primarily on account of new launches and improvement in base business.
- Revenues from PSAI at Rs. 4.7 billion, marginally declined 1% year-on-year.
- During the quarter, 15 DMFs were filed globally of which 4 were in the US.
- Gross profit margin at 51.6% and declined by ~460 bps over that of previous year. This is primarily on account of (a) lower contribution from Domestic Formulations business consequent to GST transition and (b) lower realizations in our North America Generics business. Gross profit margin for Global Generics (GG) and PSAI business segments are at 57.7% and 11.5% respectively.
- SG&A expenses at Rs. 11.8 billion, decreased 4% year-on-year.
- Research & development expenses at Rs. 5.1 billion. As a % to sales R&D expenses stood at 15.3% as compared to 14.8% in Q1 FY17. Focus continues to build a sustainable revenue stream through a mix of simple and complex generics, biosimilars and differentiated products pipeline.
- Net Finance income at Rs. 221 million compared to the net finance income of Rs. 445 million in Q1FY17. Lower income of Rs. 224 million is on account of:
- Decrease in profit on sales of investments by Rs. 3 million.
- Net foreign exchange gain of Rs. 10 million in the current quarter vs net foreign exchange gain of Rs. 36 million in the previous year
- Decrease in net interest income of Rs. 195 million.
- Profit after Tax at Rs. 0.6 billion
- Diluted earnings per share is at Rs. 3.6
- Capital expenditure is at Rs. 2.7 billion.
|Audio conference Participants can dial-in on the numbers below|
|Primary number:||91 22 3960 0616|
|Secondary number:||91 22 6746 5826|
|International Toll Free Number||USA||18667462133|
|Playback of call:||91 22 3065 2322, 91 22 6181 3322|
|Web-cast||More details will be provided through our website, www.drreddys.com|