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

 

January 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 nine months ended December 31, 2023.

 

On January 30, 2024, we announced our results of operations for the quarter and nine months ended December 31, 2023. 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 nine months ended December 31, 2023, 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 nine months ended December 31, 2023.

 

Exhibits

 

Exhibit Number  Description of Exhibits
    
99.1  Press Release, “Dr. Reddy’s Q3 FY2024 Financial Results”, January 30, 2024.
    
99.2  IFRS Unaudited Consolidated Financial Results for the quarter and nine months ended December 31, 2023.
    
99.3  Ind AS Unaudited Consolidated Financial Results for the quarter and nine months ended December 31, 2023.
    
99.4  Ind AS Unaudited Standalone Financial Results for the quarter and nine months ended December 31, 2023.

 

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:  January 30, 2024 By: /s/ K Randhir Singh    
    Name: K Randhir Singh 
    Title:  Company Secretary & Compliance Officer

 

 

 

Exhibit 99.1

 

 

 

  CONTACT
DR. REDDY'S LABORATORIES LTD. Investor relationS Media relationS

8-2-337, Road No. 3, Banjara Hills,

Hyderabad - 500034. Telangana, India.

Richa Periwal richaperiwal@drreddys.com

AISHWARYA SITHARAM aishwaryasitharam@drreddys.com

 USHA IYER ushaiyer@drreddys.com

 

Dr. Reddy’s Q3 & 9M FY24 Financial Results

 

Hyderabad, India, January 30, 2024: Dr. Reddy’s Laboratories Ltd. (BSE: 500124 | NSE: DRREDDY | NYSE: RDY | NSEIFSC: DRREDDY) today announced its consolidated financial results for the quarter and nine months ended December 31, 2023. The information mentioned in this release is based on consolidated financial statements under International Financial Reporting Standards (IFRS).

 

  Q3FY24 9MFY24
     
Revenues Rs. 72,148 Mn Rs. 208,334 Mn
  [Up: 7% YoY; Up: 5% QoQ] [Up: 14% YoY; Up]
     
Gross Margin 58.5% 58.6%
  [Q3FY23: 59.2%; Q2FY24: 58.7%] [9M FY23: 56.5%]
     
SG&A Expenses Rs. 20,228 Mn Rs. 56,725 Mn
  [Up: 12% YoY; 8% QoQ] [Up: 13% YoY]
     
R&D Expenses Rs. 5,565 Mn Rs. 15,996 Mn
  [7.7% of Revenues] [7.7% of Revenues]
     
EBITDA Rs. 21,107 Mn Rs. 64,278 Mn
  [29.3% of Revenues] [30.9% of Revenues]
     
Profit before Tax Rs. 18,257 Mn Rs. 55,854 Mn
  [Up: 12% YoY; Down: 5% QoQ] [Up: 19% YoY]
     
Profit after Tax Rs. 13,789 Mn Rs. 42,614 Mn
  [Up: 11% YoY; Down: 7% QoQ] [Up: 20% YoY]

 

Commenting on the results, Co-Chairman & MD, G V Prasad said: “We delivered another quarter of highest-ever sales and robust financial performance aided by new products performance and base business market share gain in the U.S., new products launch momentum and strong performance in Europe. We continue to strengthen our core businesses and invest in innovative products including strategic collaborations for novel molecules to meet unmet needs of patients.”

 

1

 

 

All amounts in millions, except EPS All US dollar amounts based on convenience translation rate of 1 USD = Rs. 83.19

 

Dr. Reddy’s Laboratories Limited & Subsidiaries

 

Revenue Mix by Segment [Q3FY24]

 

  Q3FY24   Q3FY23   YoY   Q2FY24   QoQ 
Particulars  (Rs.)   (Rs.)   Gr %   (Rs.)   Gr% 
Global Generics   63,095    59,241    7%   61,084    3%
North America   33,492    30,567    9%   31,700    5%
Europe   4,970    4,303    15%   5,286    -6%
India   11,800    11,274    5%   11,860    -1%
Emerging Markets   12,833    13,097    -2%   12,163    6%
Pharmaceutical Services and Active Ingredients (PSAI)   7,839    7,758    1%   7,034    11%
Others   1,214    701    73%   684    78%
Total   72,148    67,700    7%   68,802    5%

  

Revenue Mix by Segment [9M FY24]

 

  9MFY24   9MFY23   YoY 
Particulars  (Rs.)   (Rs.)   Gr% 
Global Generics   184,262    159,511    16%
North America   97,245    76,383    27%
Europe   15,326    12,644    21%
India   35,141    36,113^    -3%
Emerging Markets   36,550    34,371    6%
Pharmaceutical Services and Active Ingredients (PSAI)   21,582    21,282    1%
Others   2,490    2,119    18%
Total   208,334    182,911    14%

 

^ includes divestment income in India in Q1FY23, excluding which India YoY growth is at 4% and total company growth is at 15%

 

 

 

2

 

 

Consolidated Income Statement [Q3FY24]

 

   Q3FY24   Q3FY23   YoY   Q2FY24   QoQ 
Particulars  ($)   (Rs.)   ($)   (Rs.)   Gr %   ($)   (Rs.)   Gr% 
Revenues   867    72,148    814    67,700    7    827    68,802    5 
Cost of Revenues   360    29,945    332    27,607    8    342    28,434    5 
Gross Profit   507    42,203    482    40,093    5    485    40,368    5 
% of revenues        58.5%        59.2%             58.7%     
Operating Expenses                                        
Selling, General & Administrative expenses   243    20,228    216    17,981    12    226    18,795    8 
% of revenues        28.0%        26.6%             27.3%     
Research & Development expenses   67    5,565    58    4,821    15    65    5,447    2 
% of revenues        7.7%        7.1%             7.9%     
Impairment of non-current assets   1    110    2    134    (18)   1    55    100 
Other operating (income)/expense   (12)   (967)   9    732    (232)   (22)   (1796)   (46)
Results from operating activities   208    17,267    197    16,425    5    215    17,867    (3)
Net finance (income)/expense   (12)   (963)   2    139    (793)   (15)   (1225)   (21)
Share of profit of equity accounted investees, net of tax   (0)   (27)   (1)   (60)   (55)   (1)   (42)   (36)
Profit before income tax   219    18,257    196    16,346    12    230    19,134    (5)
% of revenues        25.3%        24.1%             27.8%     
Income tax expense   54    4,468    47    3875    15    52    4,334    3 
Profit for the period   166    13,789    150    12,471    11    178    14,800    (7)
% of revenues        19.1%        18.4%             21.5%     
 
Diluted Earnings Per Share (EPS)   0.99    82.68    0.90    74.95    10    1.07    88.78    (7)

 

EBITDA Computation [Q3FY24]  *Includes income from Investments

 

   Q3FY24   Q3FY23   Q2FY24 
Particulars  ($)   (Rs.)   ($)   (Rs.)   ($)   (Rs.) 
Profit before Income Tax   219    18,257    196    16,346    230    19,134 
Interest (income) / expense - Net*   (12)   (1,030)   (1)   (93)   (14)   (1,166)
Depreciation   29    2,437    27    2,245    29    2,437 
Amortization   16    1,333    12    1,026    16    1,353 
Impairment   1    110    2    134    1    55 
EBITDA   254    21,107    236    19,658    262    21,813 
% of revenues        29.3%        29.0%        31.7%

 

3

 

 

Consolidated Income Statement [9MFY24]

 

   9MFY24   9MFY23   YoY 
Particulars  ($)   (Rs.)   ($)   (Rs.)   Gr % 
Revenues   2,504    208,334    2,199    182,911    14 
Cost of Revenues   1,036    86,210    956    79,565    8 
Gross Profit   1,468    122,124    1,242    103,346    18 
% of revenues        58.6%        56.5%     
Operating Expenses                         
Selling, General & Administrative expenses   682    56,725    601    50,034    13 
% of revenues        27.2%        27.4%     
Research & Development expenses   192    15,996    168    14,015    14 
% of revenues        7.7%        7.7%     
Impairment of non-current assets   2    176    2    159    11 
Other operating (income)/expense   (43)   (3,543)   (68)   (5,626)   (37)
Results from operating activities   634    52,770    538    44,764    18 
Net finance (income)/expense   (36)   (2,972)   (25)   (2,054)   45 
Share of profit of equity accounted investees   (1)   (112)   (4)   (294)   (62)
Profit before income tax   671    55,854    566    47,112    19 
% of revenues        26.8%        25.8%     
Income tax expense   159    13,240    140    11,637    14 
Profit for the period   512    42,614    426    35,475    20 
% of revenues        20.5%        19.4%     
Diluted Earnings Per Share (EPS)   3.07    255.68    2.56    213.24    20 

 

EBITDA Computation [9MFY24]  *Includes income from Investments

 

   9MFY24   9MFY23 
Particulars  ($)   (Rs.)   ($)   (Rs.) 
Profit before Income Tax   671    55,854    566    47,112 
Interest (income) / expense - Net*   -35    -2,881    1    52 
Depreciation   86    7,155    77    6,402 
Amortization   48    3,974    37    3,045 
Impairment   2    176    2    159 
EBITDA   773    64,278    682    56,769 
% of revenues        30.9%        31.0%

 

Key Balance Sheet Items

   As on 31st Dec
2023		   As on 30th Sep
2023		   As on 31st Dec
2022		 
Particulars  ($)   (Rs.)   ($)   (Rs.)   ($)   (Rs.) 
Cash and cash equivalents and other investments   922    76,665    839    69,784    603    50,164 
Trade receivables   943    78,417    838    69,722    902    75,046 
Inventories   731    60,796    680    56,592    593    49,326 
Property, plant, and equipment   875    72,795    847    70,478    781    64,996 
Goodwill and Other Intangible assets   495    41,192    496    41,278    426    35,401 
Loans and borrowings (current & non-current)   239    19,851    159    13,230    212    17,663 
Trade payables   374    31,113    366    30,485    313    26,023 
Equity   3,220    267,850    3,042    253,086    2,648    220,273 

 

4

 

 

Key Business Highlights [Q3FY24]

 

  · Acquired the MenoLabs branded portfolio of women’s health focused supplements in the U.S.

 

  · Exclusive collaboration with Coya Therapeutics for development and commercialization of COYA 302, an Investigational Combination Therapy for treatment of Amyotrophic Lateral Sclerosis (ALS)

 

  · Inspections completed by U.S. FDA at Bachupally facility. The response to the observations were submitted within stipulated timelines.

 

  - Product specific Pre-Approval Inspection (PAI) at biologics manufacturing facility in October 2023, post which a Form 483 with 9 observations was issued,

 

  - Routine cGMP inspection at formulations manufacturing facility (FTO-3) in October 2023, post which a Form 483 with 10 observations was issued and

 

  - GMP and Pre-Approval Inspection (PAI) at R&D unit in December 2023, post which a Form 483 with 3 observations was issued.

 

ESG & other Highlights [Q3FY24]

 

  · 1st Indian pharma company to be featured in the Dow Jones Sustainability World Index for 2023 and retaining our place in the Emerging Markets Index for the 8th year in a row.

 

  · Awarded ‘Gold Medal’ status by EcoVadis.

 

  · MSCI ESG ratings upgraded from BB to BBB

 

  · Awarded Golden Peacock awards for Corporate Social Responsibility, 2023 and Excellence in Corporate Governance, 2023

 

  · Received ICSI Corporate Social Responsibility Excellence award - 2023, in recognition of our contribution to society through our CSR initiatives.

 

  · 1st Indian pharma company to pledge towards a plantation initiative covering 2,900 hectares by 2028 as part of the World Economic Forum’s 1t.org.

  

5

 

 

Revenue Analysis [Q3FY24]

 

  · Q3FY24 consolidated revenue at Rs. 72.1 billion, YoY growth of 7% and QoQ growth of 5%. The YoY growth was primarily driven by market share gains for our existing products in North America and continuation of our growth journey in Europe.

 

Global Generics (GG)

 

  · Q3FY24 revenue at Rs. 63.1 billion, YoY growth of 7% and QoQ growth of 3%. YoY growth was primarily driven by increase in volumes of our base business, new product launches, partially offset by price erosion in certain markets. Sequential growth was driven by increase in volumes of our base business, offset partially due to price erosion in certain markets.

  

North America

 

  · Q3FY24 revenue at Rs. 33.5 billion, YoY growth of 9% and QoQ growth of 5%. YoY growth was on account of market share expansion in certain existing key products and revenues from new product launches, partly offset by price erosion. Sequential growth was driven by net increase in volumes of our base business.

 

  · During the quarter, we launched 4 new products in the region, of which 2 were launched in the U.S.

 

  · During the quarter, we filed 2 new Abbreviated New Drug Applications (ANDAs) with the US Food and Drug Administration (USFDA). As of 31st December 2023, cumulatively 79 generic filings are pending for approval with the USFDA (75 ANDAs and 4 NDAs under 505(b)(2) route). Out of the pending 79 generic filings, 41 are Para IVs, and we believe 21 have ‘First to File’ status.

 

Europe  

 

  · Q3FY24 revenue at Rs. 5.0 billion, YoY growth of 15% and QoQ decline of 6%. YoY growth was primarily on account of contribution from new product launches, improvement in base business volumes and favourable currency exchange rate movements, partly offset by price erosion. QoQ decline was primarily on account of price erosion in certain countries, partly offset by increase in volumes of our base business.

 

  - Germany at Rs. 2.7 billion, YoY growth of 21% and QoQ growth of 0.1%.

 

  - UK/OL at Rs. 1.4 billion, YoY growth of 9% and QoQ decline of 22%.

 

  - Rest of Europe at Rs. 0.9 billion, YoY growth of 11% and QoQ growth of 7%.

 

  · During the quarter, we launched 6 new products in the region.

 

India

 

  · Q3FY24 revenue at Rs. 11.8 billion, YoY growth of 5% and QoQ decline of 1%. YoY growth was largely attributable to revenues from new products launches while QoQ decline was largely on lower volumes in base business.

 

  · During the quarter, we launched 3 new brands in the country.

 

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Emerging Markets

 

  · Q3FY24 revenue at Rs. 12.8 billion, YoY decline of 2% and QoQ growth of 6%. YoY decline is attributable to unfavorable forex movement, while QoQ growth was driven by volume gains for few existing products and partially offset by unfavorable currency exchange rate movements.

 

  - Revenue from Russia at Rs. 5.9 billion, YoY decline of 14% and QoQ growth of 2%.

 

YoY decline was majorly due to unfavorable currency exchange rate movements & high base business.

 

QoQ growth was largely on account of improved volumes and increase in certain brand prices, partially offset by unfavorable currency exchange rate movements.

 

  - Revenue from other CIS countries and Romania at Rs. 2.3 billion, YoY growth of 4% and QoQ growth of 7%.

 

YoY growth was primarily on account of increase in price of certain brands, new product launches and favorable forex.

 

QoQ growth was driven by increase in base business volumes and new launches.

 

  - Revenue from Rest of World (RoW) territories at Rs. 4.6 billion, YoY growth of 16% and QoQ growth of 10%.

 

YoY growth was largely attributable to contribution from new products.

 

QoQ growth was primarily driven by increase in base business volumes and new product launches.

 

Pharmaceutical Services and Active Ingredients (PSAI)

 

  · Q3FY24 revenue at Rs. 7.8 billion, with a growth of 1% YoY and 11% QoQ. YoY growth was mainly driven by revenues from new products, favourable forex, partially offset by price decline and low business volumes. QoQ growth was driven by improved volumes in base business and contributions from new product launches. Excluding revenue in base period from COVID-19 products, PSAI business grew in double-digit.

 

  · During the quarter, we filed 38 Drug Master Files (DMFs) globally.

 

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Income Statement Highlights:

 

  · Q3FY24 gross margin at 58.5% (GG: 61.9%, PSAI: 29.4%). Gross margin decreased by ~73 bps YoY and 18 bps sequentially. The decline in margin was primarily driven by lower prices for certain products in generic markets, partly offset by improvement in product mix and productivity.

 

  · Selling, general & administrative (SG&A) expenses for Q3FY24 at Rs. 20.2 billion, YoY increase of 12% and by 8% QoQ. The YoY SG&A spend increase is largely on account of investments in sales & marketing activities, digitalization capabilities, and new business initiatives.

 

  · Research & development (R&D) expenses in Q3FY24 at Rs. 5.6 billion. As % to Revenues – Q3FY24: 7.7% | Q2FY24: 7.9% | Q3FY23: 7.1%. R&D investments are driven by ongoing clinical trials on differentiated assets, as well as other developmental efforts to build a healthy pipeline of new products across our markets for both small molecules and biosimilars.

 

  · Other operating income for Q3FY24 at Rs. 0.9 billion compared to other operating expenses of Rs. 0.7 billion in Q3FY23. Other operating income was largely on account of sale of non-current assets.

 

  · Net Finance income for Q3FY24 at Rs.0.9 billion compared to net finance expense of Rs. 0.1 billion in Q3FY23. The higher income was primarily on account of profit on sale of units of mutual funds and other investments.

 

  · Profit before Tax for Q3FY24 at Rs. 18.3 billion, YoY growth of 12%. QoQ decline of 5%.

 

  · Profit after Tax for Q3FY24 at Rs. 13.8 billion, YoY growth of 11%. QoQ decline of 7%. The effective tax rate for the quarter has been 24.5% as compared to 23.7% in Q3FY23. The higher tax rate is mainly due to increase in the proportion of the Company's profits coming from higher tax jurisdictions, partly offset by adoption of corporate tax rate under section 115BAA of the Income Tax Act of India.

 

  · Diluted earnings per share for Q3FY24 is Rs. 82.68

 

Other Highlights:

 

  · EBITDA for Q3FY24 at Rs. 21.1 billion and the EBITDA margin is 29.3%.

 

  · Operating Working Capital at Rs. 108.1 billion.

 

  · Capital expenditure for Q3FY24 at Rs. 3.1 billion.

 

  · Free cash-flow for Q3FY24 at Rs. 0.2 billion.

 

  · Net cash surplus at Rs. 59.1 billion as on December 31, 2023.

 

  · Debt to Equity is (0.21).

 

  · ROCE for the company is 37% (annualized).

 

8

 

 

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.

 

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All amounts in millions, except EPS

 

Reconciliation of GAAP measures to non-GAAP measures

 

Free Cash Flow

 

   Three months
ended Dec. 31, 2023		 
Particulars  (Rs.) 
Net cash generated from operating activities   10,762 
Less:     
Taxes   6027 
Investments in PPE and Intangibles   4518 
Free Cash Flow   217 

 

Operating working capital

 

   As on 31st Dec
2023		 
Particulars  (Rs.) 
Inventories   60,796 
Trade Receivables   78,417 
Less:     
Trade Payables   31,113 
Operating Working Capital   108,100 

 

Net cash surplus

 

   As on 31st Dec
2023		 
Particulars  (Rs.) 
Cash and cash equivalents   7,535 
Investments   69,130 
Short-term borrowings   (12,343)
Long-term borrowings, non-current   (6,152)
Less:     
Restricted cash balance – Unclaimed dividend   122 
Lease liabilities (included in Long-term
borrowings, non-current)		   (2,352)
Equity Investments
(Included in Investments)		   1328 
Net Cash Surplus   59,072 

 

10

 

 

Computation of Return on Capital Employed

 

   As on 31st Dec
2023		 
Particulars  (Rs.) 
Profit before tax   18,257 
Less:     
Interest and Investment Income (Excluding forex gain/loss)   1,030 
Earnings Before Interest and taxes [A]   17,227 
      
Average Capital Employed [B]   191,125 
     
Annualized Return on Capital Employed (A/B) (Ratio)   37%

 

Computation of capital employed

 

   Year Ended 
Particulars  Dec 31,
2023		   Mar 31,
2023		 
Property Plant and Equipment   72,795    66,462 
Intangibles   36,905    30,849 
Goodwill   4,287    4,245 
Investment in equity accounted associates   4,218    4,702 
Other Current Assets   23,512    20,069 
Other investments   4,115    660 
Other non-current assets   1,128    800 
Inventories   60,796    48,670 
Trade Receivables   78,417    72,485 
Derivative Financial Instruments   -16    1,095 
Less:          
Other Liabilities   43,159    42,320 
Provisions   5,394    5,513 
Trade payables   31,113    26,444 
Operating Capital Employed   206,491    175,760 
Average Capital Employed   191,125 

 

Computation of EBITDA

 

Refer page no. 3 & 4.

 

11

 

 

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: January 30, 2024

 

Time: 19:30 pm IST | 10:00 am EDT

 

  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=1745002&linkSecurityString=a262ce748

 

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 February 6th, 2024. For play back dial in phone No: +91 22 7194 5757, and Playback Code is 61003.

 

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, 2023. The company assumes no obligation to update any information contained herein.” The company assumes no obligation to update any information contained herein.

 

12

 

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 nine months ended 31 December 2023 prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB)

 

       All amounts in Indian Rupees millions  
         Quarter ended    Nine months ended    Year ended 
         31.12.2023    30.09.2023    31.12.2022    31.12.2023    31.12.2022    31.03.2023 
Sl. No.   Particulars   (Unaudited)    (Unaudited)    (Unaudited)    (Unaudited)    (Unaudited)    (Audited) 
 1   Revenues   72,148    68,802    67,700    208,334    182,911    245,879 
 2   Cost of revenues   29,945    28,434    27,607    86,210    79,565    106,536 
 3   Gross profit (1 - 2)   42,203    40,368    40,093    122,124    103,346    139,343 
 4   Selling, general and administrative expenses   20,228    18,795    17,981    56,725    50,034    68,026 
 5   Research and development expenses   5,565    5,447    4,821    15,996    14,015    19,381 
 6   Impairment of non-current assets   110    55    134    176    159    699 
 7   Other (income)/expense,net   (967)   (1,796)   732    (3,543)   (5,626)   (5,907)
     Total operating expenses   24,936    22,501    23,668    69,354    58,582    82,199 
 8   Results from operating activities [(3) - (4 + 5 + 6 + 7)]   17,267    17,867    16,425    52,770    44,764    57,144 
     Finance income   1,357    1,578    279    4,090    3,128    4,281 
     Finance expense   (394)   (353)   (418)   (1,118)   (1,074)   (1,428)
 9   Finance income/(expense),net   963    1,225    (139)   2,972    2,054    2,853 
 10   Share of profit of equity accounted investees, net of tax   27    42    60    112    294    370 
 11   Profit before tax (8 + 9 + 10)   18,257    19,134    16,346    55,854    47,112    60,367 
 12   Tax expense,net   4,468    4,334    3,875    13,240    11,637    15,300 
 13   Profit for the period/year (11 -12)   13,789    14,800    12,471    42,614    35,475    45,067 
 14   Earnings per share:                              
     Basic earnings per share of Rs.5/- each   82.81    88.96    75.09    256.17    213.69    271.43 
     Diluted earnings per share of Rs.5/- each   82.68    88.78    74.95    255.68    213.24    270.85 
         (Not annualised)    (Not annualised)    (Not annualised)    (Not annualised)    (Not annualised)      

 

 

   

 

 

 

 

Segment information  All amounts in Indian Rupees millions 
         Quarter ended    Nine months ended    Year ended 
         31.12.2023    30.09.2023    31.12.2022    31.12.2023    31.12.2022    31.03.2023 
Sl. No.   Particulars   (Unaudited)    (Unaudited)    (Unaudited)    (Unaudited)    (Unaudited)    (Audited) 
     Segment wise revenue and results:                        
 1   Segment revenue:                        
     a) Pharmaceutical Services and Active Ingredients   10,390    9,446    10,142    29,054    26,385    36,646 
     b) Global Generics   63,095    61,084    59,241    184,262    159,511    213,768 
     c) Others   1,214    684    701    2,490    2,118    3,042 
     Total   74,699    71,214    70,084    215,806    188,014    253,456 
     Less: Inter-segment revenues   2,551    2,412    2,384    7,472    5,103    7,577 
     Net revenues   72,148    68,802    67,700    208,334    182,911    245,879 
                                    
 2   Segment results:                              
     Gross profit from each segment                              
     a) Pharmaceutical Services and Active Ingredients   2,306    1,254    1,409    4,569    2,752    4,715 
     b) Global Generics   39,075    38,873    38,255    116,335    99,221    132,719 
     c) Others   822    241    429    1,220    1,373    1,909 
     Total   42,203    40,368    40,093    122,124    103,346    139,343 
     Less: Selling and other un-allocable expenditure, net of other  income   23,946    21,234    23,747    66,270    56,234    78,976 
     Total profit before tax   18,257    19,134    16,346    55,854    47,112    60,367 

 

Global Generics segment includes operations of Biologics business. Inter-segment revenues represent sale from Pharmaceutical Services and Active Ingredients to Global Generics and Others at cost.

 

Notes:

 

1The 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 30 January 2024. The Auditors have carried out a limited review on the unaudited consolidated financial results and issued an unmodified report thereon.

 

2Revenues for the year ended 31 March 2023 includes:

a. Rs.2,640 million from sale of  certain non-core dermatology brands to Eris Lifesciences Limited;

b. Rs.1,399 million from sale of brands Styptovit-E, Finast, Finast-T and Dynapres to Torrent Pharmaceuticals Limited; and

c. Rs.902 million from sale of brands Z&D, Pedicloryl, Pecef and Ezinapi to J B Chemicals and Pharmaceuticals Limited.

The amounts recognised above are adjusted for expected sales returns. These transactions pertain to Company’s Global Generics segment.

 

3During the quarter and nine months ended 31 December 2023, an amount of Rs.1,148 million and Rs.3,422 million, respectively, and during the quarter and nine months ended  31 December 2022, an amount of Rs.435 million and Rs.2,806 million, respectively, representing government grants have been accounted as a reduction from Cost of revenues.

 

4“Other (income)/expense, net” for the nine months ended 31 December 2023 includes 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.

 

5“Other (income)/expense, net” for quarter ended 30 September 2023 includes Rs.984 million recognised 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.

 

6Included in “Other (income)/expense, net” for the year ended 31 March 2023, is an amount of Rs.991 million representing the Loss on sale of Assets recognised in December 2022, pursuant to agreement dated 16 December 2022 with Delpharm Development Leiden B.V (Delpharm) for transfer of its certain assets, liabilities and employees at its site at Leiden, Netherlands.This transaction pertains to Company’s Global Generics segment.

 

7"Other (income)/expense, net" for the nine months ended 31 December 2022 includes an amount of Rs.5,638 million (U.S.$71.39 million discounted to present value) recognised in June 2022 towards the settlement of an ongoing litigation relating to launch of a product with Indivior Inc., Indivior UK Limited and Aquestive Therapeutics, Inc.

 

8The Company has considered the impact of recent tax regulations and developments, including updates to its estimate on the impact of adoption of the Taxation Laws (Amendment) Act 2019, in determining its “Tax expense/(benefit)” for the nine months ended 31 December 2023 and year ended 31 March 2023.

 

9The Company considered the uncertainties relating to the 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 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 made presentations to the SEC and the DOJ in relation to the investigation with respect to certain countries during the previous fiscal years. The Company also made a presentation to the SEC and the DOJ in relation to its Global Compliance Framework, including the ongoing enhancement initiatives, during the year ended 31 March 2023. 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, which can lead to civil and criminal sanctions under relevant laws, the outcomes including liabilities are not reasonably ascertainable at this time.

 

Place: Hyderabad

Date: 30 January 2024 

  

By order of the Board

For Dr. Reddy's Laboratories Limited

 

 

G V Prasad

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 nine months ended December 31, 2023’ (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 associate 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 circular issued by the SEBI 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 Oncology limited (Formerly, 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 Owners and Land Possessions Private Limited (Formerly, Imperial Credit Private Limited)
9.Industrias Quimicas Falcon de Mexico, S.A.de C.V.
10.Svaas Wellness Limited
11.Aurigene Discovery Technologies (Malaysia) Sdn. Bhd.

 

 

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		  

 

12.Aurigene Pharmaceutical Services Limited
13.beta Institut gemeinnützige GmbH
14.betapharm Arzneimittel GmbH
15.Chirotech Technology Limited (Under the process of liquidation)
16.DRL Impex Limited
17.Dr. Reddy’s Laboratories (Australia) Pty. Limited
18.Dr. Reddy’s (Beijing) Pharmaceutical Co. Limited
19.Dr. Reddy’s Laboratories Canada, Inc.
20.Dr. Reddy's Laboratories Chile SPA.
21.Dr. Reddy’s Laboratories (EU) Limited
22.Dr. Reddy’s Laboratories Inc.
23.Dr. Reddy's Laboratories Japan KK
24.Dr. Reddy’s Laboratories Kazakhstan LLP
25.Dr. Reddy’s Laboratories LLC, Ukraine
26.Dr. Reddy's Laboratories Louisiana LLC
27.Dr. Reddy’s Laboratories Malaysia Sdn. Bhd.
28.Dr. Reddy’s Laboratories New York, LLC
29.Dr. Reddy's Laboratories Philippines Inc.
30.Dr. Reddy’s Laboratories (Proprietary) Limited
31.Dr. Reddy's Laboratories Romania S.R.L.
32.Dr. Reddy's Laboratories SAS
33.Dr. Reddy's Laboratories Taiwan Limited
34.Dr. Reddy's Laboratories (Thailand) Limited
35.Dr. Reddy’s Laboratories (UK) Limited
36.Dr. Reddy’s New Zealand Limited
37.Dr. Reddy's Research and Development B.V.
38.Dr. Reddy’s Srl
39.Dr. Reddy's Venezuela, C.A.
40.Dr. Reddy’s Laboratories LLC
41.Lacock Holdings Limited
42.Promius Pharma LLC
43.Reddy Holding GmbH
44.Reddy Netherlands B.V.
45.Reddy Pharma Iberia SAU
46.Reddy Pharma Italia S.R.L
47.Reddy Pharma SAS
48.Nimbus Health GmbH
49.Dr. Reddy’s Laboratories Jamaica Limited (From 25 September 2023)

 

Associate

 

1.O2 Renewable Energy IX Private Limited (From November 10, 2023)

 

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 Employees ESOS 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: 24213271BKEKYN6989
Place: Visakhapatnam
Date: January 30, 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 NINE MONTHS ENDED 31 DECEMBER 2023

 

       All amounts in Indian Rupees millions 
         Quarter ended    Nine months ended   Year ended 
        31.12.2023    30.09.2023    31.12.2022    31.12.2023    31.12.2022    31.03.2023 
Sl. No.   Particulars   (Unaudited)    (Unaudited)    (Unaudited)    (Unaudited)    (Unaudited)    (Audited) 
                                    
 1    Revenue from operations                               
      a) Net sales/income from operations   69,647    67,348    66,353    203,138    176,165    234,595 
      b) License fees and service income   2,501    1,454    1,346    5,196    6,745    11,284 
      c) Other operating income    220    224    199    639    635    818 
      Total revenue from operations   72,368    69,026    67,898    208,973    183,545    246,697 
 2    Other income    2,162    3,150    587    6,984    9,170    10,555 
 3    Total income (1 + 2)    74,530    72,176    68,485    215,957    192,715    257,252 
 4    Expenses                               
      a) Cost of materials consumed   11,412    9,559    12,891    33,939    31,470    42,198 
      b) Purchase of stock-in-trade    12,083    11,378    9,160    32,232    26,004    33,670 
      c) Changes in inventories of finished goods, work-in-progress
     and stock-in-trade		   (1,735)   (907)   (2,037)   (5,005)   123    709 
      d) Employee benefits expense   12,764    12,803    11,732    37,464    33,706    46,466 
      e) Depreciation and amortisation expense   3,735    3,755    3,237    11,023    9,347    12,502 
      f) Impairment of non-current assets   110    55    134    176    159    699 
      g) Finance costs    394    353    418    1,118    1,074    1,428 
      h) Selling and other expenses   17,503    16,055    16,633    49,164    43,933    59,465 
      Total expenses    56,266    53,051    52,168    160,111    145,816    197,137 
 5    Profit before tax and before share of equity accounted investees(3 - 4)   18,264    19,125    16,317    55,846    46,899    60,115 
                                    
 6    Share of profit of equity accounted investees, net of tax   27    42    60    112    294    370 
 7    Profit before tax (5+6)    18,291    19,167    16,377    55,958    47,193    60,485 
 8    Tax expense/(benefit):                               
      a) Current tax    3,538    5,901    3,096    16,636    3,865    8,144 
      b) Deferred tax    944    (1,556)   842    (3,359)   7,857    7,268 
 9    Net profit after taxes and share of profit of associates (7 - 8)   13,809    14,822    12,439    42,681    35,471    45,073 
 10    Other comprehensive income                              
      a) (i) Items that will not be reclassified subsequently to profit or loss   132    (222)   (69)   16    (743)   (660)
      (ii) Income tax relating to items that will not be reclassified
     to profit or loss		   -    -    (31)   -    (31)   (43)
      b) (i) Items that will be reclassified subsequently to profit or loss   782    (1,113)   2,404    (184)   (920)   276 
      (ii) Income tax relating to items that will be reclassified to profit or loss   78    201    (600)   69    648    306 
      Total other comprehensive income   992    (1,134)   1,704    (99)   (1,046)   (121)
 11    Total comprehensive income (9 + 10)   14,801    13,688    14,143    42,582    34,425    44,952 
 12    Paid-up equity share capital (face value Rs. 5/- each)   834    834    833    834    833    833 
 13    Other equity                            232,028 
 14    Earnings per equity share (face value Rs. 5/- each)                              
            Basic    82.94    89.09    74.91    256.57    213.68    271.47 
            Diluted    82.81    88.91    74.76    256.08    213.23    270.90 
         (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 
       Quarter ended   Nine months ended   Year ended 
      31.12.2023   30.09.2023   31.12.2022   31.12.2023   31.12.2022   31.03.2023 
Sl. No.   Particulars  (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Audited) 
      Segment wise revenue and results:                        
 1    Segment revenue :                         
      a) Pharmaceutical Services and Active Ingredients   10,580    9,625    10,304    29,570    26,797    37,195 
      b) Global Generics    63,124    61,130    59,276    184,384    159,656    213,953 
      c) Others    1,215    683    702    2,491    2,195    3,126 
      Total    74,919    71,438    70,282    216,445    188,648    254,274 
      Less: Inter-segment revenue      2,551    2,412    2,384    7,472    5,103    7,577 
      Total revenue from operations   72,368    69,026    67,898    208,973    183,545    246,697 
 2    Segment results:                               
      Gross profit from each segment                              
      a) Pharmaceutical Services and Active Ingredients   2,307    1,260    1,413    4,580    2,763    4,733 
      b) Global Generics    39,077    38,872    38,254    116,335    99,221    132,719 
      c) Others    823    242    430    1,221    1,374    1,909 
      Total    42,207    40,374    40,097    122,136    103,358    139,361 
      Less: Selling and other un-allocable expenditure/(income), net   23,916    21,207    23,721    66,178    56,166    78,876 
      Total profit before tax    18,291    19,167    16,377    55,958    47,193    60,485 

 

Global Generics includes operations of Biologics business. Inter-segment revenue 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 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:

 

1The above statement of unaudited consolidated financial results of Dr. Reddy's Laboratories Limited ("the Company"), which have been prepared in accordance with 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 30 January 2024. The Statutory Auditors have carried out a limited review on the unaudited consolidated financial results and issued an unmodified report thereon.

 

2License fee and service income for the year ended 31 March 2023 includes: a. Rs. 2,640 million from sale of  certain non-core dermatology brands to Eris Lifesciences Limited; b. Rs. 1,399 million from sale of brands Styptovit-E, Finast, Finast-T and Dynapres to Torrent Pharmaceuticals Limited; and c. Rs. 902 million from sale of brands Z&D, Pedicloryl, Pecef and Ezinapi to J B Chemicals and Pharmaceuticals Limited. The amounts recognised above are adjusted for expected sales returns. These transactions pertain to Company’s Global Generics segment.

 

3“Other income” for the nine months ended 31 December 2023 includes 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.

 

4“Other income” for quarter ended 30 September 2023 includes Rs.984 million recognised 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.

 

5“Other income” for the year ended 31 March 2023 includes an amount of Rs.5,638 million (U.S.$71.39 discounted to present value), recognised in June 2022 towards the settlement of an ongoing litigation relating to launch of a product with Indivior Inc., Indivior UK Limited and Aquestive Therapeutics, Inc.

 

6During the quarter and nine months ended 31 December 2023 , an amount of Rs.1,148 million and Rs.3,422 million, respectively and during quarter and nine months ended 31 December 2022, an amount of Rs.435 million and Rs.2,806 million, respectively, representing government grants has been accounted as a reduction from Cost of materials consumed.

 

7Included in “Selling and other expenses” for the year ended 31 March 2023, is an amount of Rs. 991 million representing the Loss on sale of Assets recognised in December 2022, pursuant to agreement with Delpharm Development Leiden B.V (Delpharm) for transfer of its certain assets, liabilities and employees at its site at Leiden, Netherlands.This transaction pertains to Company’s Global Generics segment.

 

8The Company has considered the impact of recent tax regulations and developments, including updates to its estimate on the impact of adoption of the Taxation Laws (Amendment) Act 2019, in determining its “Tax expense/(benefit)” for the nine months ended 31 December 2023 and year ended 31 March 2023.

 

   

 

   

 

 

 

 

DR. REDDY'S LABORATORIES LIMITED

 

9The 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 made presentations to the SEC and the DOJ in relation to the investigation with respect to certain countries during the previous fiscal years. The Company also made a presentation to the SEC and the DOJ in relation to its Global Compliance Framework, including the ongoing enhancement initiatives, during the year ended 31 March 2023. 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, which can lead to civil and criminal sanctions under relevant laws, the outcomes including liabilities are not reasonably ascertainable at this time.

 

10The Company considered the uncertainties relating to the 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.

 

    By order of the Board
    For Dr. Reddy's Laboratories Limited
     
   
Place: Hyderabad G V Prasad
Date: 30 January 2024 Co-Chairman & Managing Director

   

 

 

 

Exhibit 99.4

 

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 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 nine months ended 31 December 2023’ (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: 24213271BKEKYI4480.
Place: Visakhapatnam
Date: January 30, 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 NINE MONTHS ENDED 31 DECEMBER 2023

 

All amounts in Indian Rupees millions 
       Quarter ended   Nine months ended   Year ended 
       31.12.2023   30.09.2023   31.12.2022   31.12.2023   31.12.2022   31.03.2023 
Sl. No.    Particulars     (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Audited) 
 1   Revenue from operations                              
     a) Net sales/income from operations   40,389    48,037    38,624    142,460    120,498    162,989 
     b) License fees and service income   442    154    172    763    3,115    6,002 
     c) Other operating income   199    196    180    567    472    634 
     Total revenue from operations   41,030    48,387    38,976    143,790    124,085    169,625 
                                    
 2   Other income   2,276    2,231    514    6,651    5,343    5,913 
                                    
     Total income (1 + 2)   43,306    50,618    39,490    150,441    129,428    175,538 
                                    
 3   Expenses                              
     a) Cost of materials consumed   8,187    7,512    8,659    23,838    23,073    31,614 
     b) Purchase of stock-in-trade   5,569    4,992    4,874    14,403    14,101    17,793 
     c) Changes in inventories of finished goods, work-in-progress
     and stock-in-trade		   (651)   (1,054)   (1,281)   (1,868)   227    1,295 
     d) Employee benefits expense   7,823    7,837    7,084    23,062    20,675    28,326 
     e) Depreciation and amortisation expense   2,464    2,458    2,388    7,294    6,865    9,232 
     f) Impairment of non-current assets   -    -    10    -    10    51 
     g) Finance costs   56    58    28    159    143    169 
     h) Selling and other expenses   13,539    12,809    12,879    39,032    35,040    48,398 
                                    
     Total expenses   36,987    34,612    34,641    105,920    100,134    136,878 
                                    
 4   Profit  before tax (1 + 2 - 3)   6,319    16,006    4,849    44,521    29,294    38,660 
                                    
 5   Tax expense/(benefit)                              
     a) Current tax   1,569    3,960    1,988    10,916    6,322    8,641 
     b) Deferred tax   (2)   120    (385)   533    3,568    3,891 
                                    
 6   Net profit for the period/year (4 - 5)   4,752    11,926    3,246    33,072    19,404    26,128 
                                    
 7   Other comprehensive income                              
     a) (i) Items that will not be reclassified to profit or loss   (8)   1    2    (6)   3    89 
                                    
     (ii) Income tax relating to items that will not be reclassified to profit or loss   -    -    (31)   -    (31)   (53)
                                    
     b) (i) Items that will be reclassified to profit or loss   24    (802)   1,296    (257)   (2,278)   (928)
                                    
     (ii) Income tax relating to items that will be reclassified to
 profit or loss		   (6)   201    (551)   65    697    358 
                                    
     Total other comprehensive income   10    (600)   716    (198)   (1,609)   (534)
                                    
 8   Total comprehensive income (6 + 7)   4,762    11,326    3,962    32,874    17,795    25,594 
                                    
 9   Paid-up equity share capital (face value Rs. 5/- each)   834    834    833    834    833    833 
                                    
 10   Other equity                            203,909 
                                    
 11   Earnings per equity share (face value Rs. 5/- each)                              
     Basic   28.55    71.68    19.54    198.81    116.88    157.37 
     Diluted   28.50    71.54    19.50    198.43    116.63    157.03 
         (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 
       Quarter ended   Nine months ended   Year ended 
       31.12.2023   30.09.2023   31.12.2022   31.12.2023   31.12.2022   31.03.2023 
Sl. No.   Particulars  (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Audited) 
     Segment wise revenue and results                              
 1   Segment revenue                              
     a) Pharmaceutical Services and Active Ingredients   7,658    6,357    6,357    20,900    18,785    27,896 
     b) Global Generics   35,726    43,995    34,298    129,399    109,348    147,999 
     c) Others   66    128    110    325    368    497 
     Total   43,450    50,480    40,765    150,624    128,501    176,392 
                                    
     Less: Inter-segment revenue   2,420    2,093    1,789    6,834    4,416    6,767 
     Total revenue from operations   41,030    48,387    38,976    143,790    124,085    169,625 
                                    
 2   Segment results                              
     Profit/(loss) before tax and interest from each segment                              
     a) Pharmaceutical Services and Active Ingredients   (397)   (540)   (671)   (1,533)   (1,822)   (1,336)
     b) Global Generics   6,832    16,174    7,498    45,498    37,662    46,716 
     c) Others   198    108    (97)   297    (103)   (154)
     Total   6,633    15,742    6,730    44,262    35,737    45,226 
                                    
     Less: (i) Finance costs   56    58    28    159    143    169 
     (ii) Other un-allocable expenditure/(income), net   258    (322)   1,853    (418)   6,300    6,397 
     Total profit before tax   6,319    16,006    4,849    44,521    29,294    38,660 

 

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:

 

1The 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 30 January 2024. The Statutory Auditors have carried out a limited review on the unaudited standalone financial results and issued unmodified report thereon.

 

2License fee and service income for the year ended 31 March 2023 includes:
a. Rs. 2,640 million from sale of certain non-core dermatology brands in India to Eris Lifesciences Limited;
b. Rs. 1,399 million from sale of brands Styptovit-E, Finast, Finast-T and Dynapres to Torrent Pharmaceuticals Limited; and
c. Rs. 902 million from sale of brands Z&D, Pedicloryl, Pecef and Ezinapi to J B Chemicals and Pharmaceuticals Limited;
The amounts recognised above are adjusted for expected sales returns. These transactions pertain to the Company’s Global Generics segment.

 

3“Other income” for the nine months ended 31 December 2023 includes 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.

 

4“Other income” for the nine months ended 31 December 2023 includes dividend income of Rs. 443 million declared by Kunshan Rotan Reddy Pharmaceutical Company Limited.

 

5During the quarter and nine months ended 31 December 2023, an amount of Rs. 1,142 million and Rs. 3,405 million respectively and during the quarter and nine months ended 31 December 2022, an amount of Rs. 435 million and Rs. 2,806 million respectively, representing government grants has been accounted as a reduction from cost of material consumed.

 

6The Company has considered the impact of recent tax regulations and developments, including updates to its estimate on the impact of adoption of the Taxation Laws (Amendment) Act 2019, in determining its “Tax expense/(benefit)” for the nine months ended 31 December 2023 and year ended 31 March 2023.

 

7The 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 made presentations to the SEC and the DOJ in relation to the investigation with respect to certain countries during the previous fiscal years. The Company also made a presentation to the SEC and the DOJ in relation to its Global Compliance Framework, including the ongoing enhancement initiatives, during the year ended 31 March 2023. 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, which can lead to civil and criminal sanctions under relevant laws, the outcomes including liabilities are not reasonably ascertainable at this time.

 

By order of the Board
For Dr. Reddy's Laboratories Limited
 
Place: Hyderabad G V Prasad
Date: 30 January 2024 Co-Chairman & Managing Director

 

   

  

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