Dr. Reddy s Q2 & H1 FY14 Financial Results

Transcription

1 Dr. Reddy s Q2 & H1 FY14 Financial Results Q2 FY14 Revenues at `33.6 billin (YY grwth f 17%) Q2 FY14 EBITDA at `9.5 billin (YY grwth f 27%) H1 FY14 Revenues at `62.0 billin (YY grwth f 14%) H1 FY14 EBITDA at `15.2 billin (YY grwth f 22%) Hyderabad, India, Octber 31, 2013: Dr. Reddy s Labratries Ltd. (NYSE: RDY) tday annunced its unaudited cnslidated financial results fr the quarter ended September 30, 2013 under Internatinal Financial Reprting Standards (IFRS). Key Highlights (Q2 FY14) Cnslidated revenues at `33.6 billin, YY grwth f 17%. Revenues frm the Glbal Generics (GG) segment at `26.5 billin, YY grwth f 32%. Grwth driven by Nrth America, Russia & ther Emerging Markets. Revenues frm the Pharmaceutical Services and Active Ingredients (PSAI) segment at `6.4 billin, YY decline f 19%. Research & Develpment (R&D) expenses at `3.0 billin, 9% t revenues versus 6.1% t revenues as in Q2 FY13. Selling, general & administrative (SG&A) expenses at `9.7 billin, 29% t revenues versus 27.8% t revenues as in Q2 FY13. EBITDA at `9.5 billin, 28.3% t revenues versus 25.9% t revenues as in Q2 FY13. PAT at `6.9 billin, 20.6% t revenues versus 13.6% t revenues as in Q2 FY13. During the quarter, the cmpany launched 19 new generic prducts, filed 13 new prduct registratins and filed 8 DMFs glbally. Nte: Q2 FY 13 Incme Statement cnsidered is as submitted t the US SEC in the frm 6K. 1

2 All figures in millins, except EPS All US dllar figures based n cnvenience translatin rate f 1USD = `62.58 Dr. Reddy s Labratries Limited and Subsidiaries Unaudited Cnslidated Incme Statement Q2 FY14 Q2 FY13 Grwth ($) (`) % ($) (`) % % Revenues , , Cst f revenues , , Grss prfit , , Operating Expenses Selling, general & administrative expenses 156 9, , Research and develpment expenses 48 3, , Impairment lss n intangible assets Impairment lss n gdwill Other perating incme (10) (637) (1.9) (6) (397) (1.4) 60 Results frm perating activities 118 7, , Net finance incme (5) (291) (0.9) (6) (371) (1.3) (22) Share f prfit f equity accunted investees (1) (44) (0.1) (0) (28) (0.1) 56 Prfit befre incme tax 123 7, , Incme tax expense , (48) Prfit fr the perid 110 6, , Diluted Earnings per share EBITDA Cmputatin: Q2 FY14 Q2 FY13 ($) (`) ($) (`) Prfit befre incme tax 123 7, ,437 Interest (incme)/expense 1 71 (1) (31) Depreciatin 19 1, Amrtizatin Impairment EBITDA 152 9, ,470 2

3 Segmental Analysis Glbal Generics Revenues frm Glbal Generics segment fr Q2 FY14 at `26.5 billin, YY grwth f 32% driven by Nrth America, Russia and ther Emerging Market territries. Revenues frm Nrth America fr Q2 FY14 at `13.2 billin, YY grwth f 43%. Grwth largely driven by:- Prducts launched in limited cmpetitin space namely finasteride 1mg, istretinin, zledrnic acid (5mg/100mL), zledrnic acid (4mg/5ml) etc during previus quarters pst Sep 2012 and 4 new prducts which were launched during the quarter - azacitidine, decitabine, dnepezil 23mg, and divalprex ER tabs. Significant tractin in market share f key existing prducts namely fndaparinux, meprazle DR etc During the quarter, 4 ANDAs were filed. Cumulatively, 62 ANDAs are pending fr apprval with the USFDA f which 39 are Para IVs and we believe 9 have First T File status. Revenues frm Emerging Markets (which include Russia, CIS cuntries and RW territries) fr Q2 FY14 at `7.3 billin, YY grwth f 42%. Revenues frm Russia at `4.6 billin, YY grwth f 44%. Grwth was largely driven by vlume uptake in the current quarter n accunt f seasnal impact. Revenues frm CIS markets at `0.9 billin, YY grwth f 39%. Grwth was largely driven by vlume uptake f existing prducts and intrductin f new prducts in Ukraine. Revenues frm RW territries std at `1.8 billin, YY grwth f 36%. Revenues frm India fr Q2 FY14 at `4.2 billin, YY grwth f 8.5%. Resilient grwth after cnsidering trade disruptins and impact f the revised prices under new pharma pricing plicy. Revenues frm Eurpe fr Q2 FY14 at `1.8 billin, remained flat YY. Pharmaceutical Services and Active Ingredients (PSAI) Revenues frm PSAI fr Q2 FY14 at ` 6.4 billin, YY decline f 19%. Degrwth n the back f lwer number f launch mlecules t ur custmers during the quarter. During the quarter, 8 DMFs were filed glbally, including 1 in the US and 1 in Eurpe. The cumulative number f DMF filings as f September 30, 2013 is

4 Incme Statement Highlights: Grss prfit margin at 58% in Q2 FY14 imprved by nearly 560 basis pints versus Q2 FY13. Grss prfit margin fr Glbal Generics and PSAI business segments are at 66.1% and 24.6% respectively. GG grss margin imprved primarily n accunt f higher cntributin frm new prduct launches in Nrth America, where as PSAI grss margin declined, primarily n the back f lwer number f launch mlecules t ur custmers and relatively higher verheads during the quarter. SG&A expenses including amrtizatin in Q2FY14 at `9.7 billin, YY grwth f 21%. The increase is primarily twards select brand building activities in the Emerging Market territries. R&D expenses std at `3.0 billin, YY grwth f 71%; 9% t revenues in Q2 FY14 as cmpared t 6.1% t revenues in Q2 FY13. Net Finance incme at `291 millin in Q2 FY14 cmpared t the net finance incme f `371 millin in Q2 FY13. The change is n accunt f : Net incremental frex impact f `23 millin Incremental net interest expense f `103 millin EBITDA fr Q2 FY14 at `9.5 billin, YY grwth f 27%; 28.3% t revenues. Prfit after Tax in Q2 FY14 at `6.9 billin, YY grwth f 76%. Diluted earnings per share in Q2 FY 14 at `40.5 Capital expenditure fr Q2 FY14 is `3.8 billin. 4

5 All US dllar figures based n cnvenience translatin rate f 1USD = `62.58 Appendix 1: Key Balance Sheet Items (in millins) As n 30th Sep 2013 As n 30th June 2013 ($) (`) ($) (`) Cash and cash equivalents and current investments , ,907 Trade receivables , ,168 Inventries , ,536 Prperty, plant and equipment , ,393 Gdwill and Other Intangible assets , ,787 Lans and brrwings (current & nn-current) , ,937 Trade payables , ,076 Ttal Equity 1,248 78,086 1,199 75,051 Appendix 2: Revenue Mix by Segment (in millins) Q2 FY14 Q2 FY13 Grwth ($) (`) % ($) (`) % % Glbal Generics , , Nrth America 13, , Eurpe 1, ,777 9 (1) India 4, , Russia & Other CIS 5, , RW 1, , PSAI 102 6, , (19) Nrth America , (30) Eurpe 2, , (19) India 1, , (7) RW 2, , (18) Prprietary Prducts & Others (25) Ttal , ,

6 All figures in millins, except EPS All US dllar figures based n cnvenience translatin rate f 1USD = `62.58 Appendix 3: Cnslidated Incme Statement H1 FY14 H1 FY13 ($) (`) % ($) (`) % Grwth % Revenue , , Cst f revenues , , Grss prfit , , Operating Expenses Selling, general & administrative expenses , , Research and develpment expenses 87 5, , Impairment lss n intangible assets Impairment lss n gdwill Other perating incme (16) (1012) (1.6) (10) (615) (1.1) 65 Results frm perating activities , , Net finance incme (4) (221) (0.4) (3) (159) (0.3) 39 Share f prfit f equity accunted investees (1) (79) (0.1) (1) (47) (0.1) 69 Prfit befre incme tax , , Incme tax expense 21 1, , (30) Prfit fr the perid , , Diluted EPS Appendix 4: EBITDA Cmputatin: H1 FY14 H1 FY13 ($) (`) ($) (`) Prfit befre incme tax , ,163 Interest (incme) / expense 0 11 (0) (29) Depreciatin 37 2, ,839 Amrtizatin 17 1, Impairment EBITDA , ,494 6

7 Disclaimer This press release includes frward-lking statements, as defined in the U.S. Private Securities Litigatin Refrm Act f We have based these frward-lking statements n ur current expectatins and prjectins abut future events. Such statements invlve knwn and unknwn risks, uncertainties and ther factrs that may cause actual results t differ materially. Such factrs include, but are nt limited t, changes in lcal and glbal ecnmic cnditins, ur ability t successfully implement ur strategy, the market acceptance f and demand fr ur prducts, ur grwth and expansin, technlgical change and ur expsure t market risks. By their nature, these expectatins and prjectins are nly estimates and culd be materially different frm actual results in the future. Abut Dr. Reddy's Dr. Reddy s Labratries Ltd. (NYSE: RDY) is an integrated glbal pharmaceutical cmpany, cmmitted t prviding affrdable and innvative medicines fr healthier lives. Thrugh its three businesses - Pharmaceutical Services and Active Ingredients, Glbal Generics and Prprietary Prducts Dr. Reddy s ffers a prtfli f prducts and services including APIs, custm pharmaceutical services, generics, bisimilars and differentiated frmulatins. Majr therapeutic fcus is n gastr-intestinal, cardivascular, diabetlgy, nclgy, pain management and anti-infective. Majr markets include India, USA, Russia-CIS and Eurpe apart frm ther select gegraphies within Emerging Markets. Fr mre infrmatin, lg n t: Cntact Infrmatin Investrs and Financial Analysts: Kedar Upadhye at kedaru@drreddys.cm / Saunak Savla at saunaks@drreddys.cm / Milan Kalawadia (USA) at mkalawadia@drreddys.cm / Media: S Rajan at rajans@drreddys.cm / Nte: All discussins in this release are based n unaudited cnslidated IFRS financials. 7