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 of Dr. Reddy’s Laboratories Limited (the “Holding Company”) and its subsidiaries (the Holding Company and its subsidiaries together referred to as “the Group”), and its joint ventures for the quarter ended December 31, 2020 and year to date from April 01, 2020 to December 31, 2020 (the “Statement”) 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. This Statement, which is the responsibility of the Holding Company’s Management and approved by the Holding Company’s Board of Directors, has been prepared 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. 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 No. CIR/CFD/CMD1/44/2019 dated March 29, 2019 issued by the Securities and Exchange Board of India under Regulation 33(8) of the Listing Regulations, to the extent applicable.

4. The Statement includes the results of the following entities:

S.No       Name of the Company  

Subsidiaries:

1. Aurigene Discovery Technologies Limited

2. Cheminor Investments Limited

3. Dr. Reddy’s Bio-Sciences Limited

4. Dr. Reddy’s Farmaceutica Do Brasil Ltda.

5. Dr. Reddy’s Laboratories SA

6. Idea2Enterprises (India) Private Limited

7. Imperial Credit Private Limited

8. Industrias Quimicas Falcon de Mexico, S.A.de C.V.

9. Reddy Antilles N.V. (till 02 November, 2019)

 

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

10. Svaas Wellness Limited (formerly ‘Regkinetics Services Limited’ name changed effective December 18, 2020)

11. Aurigene Discovery Technologies (Malaysia) SDN BHD

12. Aurigene Discovery Technologies Inc.

13. Aurigene Pharmaceutical Services Limited (from 16 September 2019)

14. beta Institut gemeinnützige GmbH

15. betapharm Arzneimittel GmbH

16. Chirotech Technology Limited

17. DRL Impex Limited

18. Dr. Reddy’s Laboratories (Australia) Pty. 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

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 Research and Development B.V.

37. Dr. Reddy’s Singapore PTE Limited (till 04 June, 2019)

38. Dr. Reddy’s Srl

39. Dr. Reddy’s New Zealand Limited

40. Dr. Reddy’s (WUXI) Pharmaceutical Co. Limited

41. Dr. Reddy’s Venezuela, C.A.

42. Dr. Reddy’s Laboratories B.V. (Formerly Eurobridge Consulting B.V.)

43. Lacock Holdings Limited

44. OOO Dr. Reddy’s Laboratories Limited

45. OOO DRS LLC

46. Promius Pharma LLC

47. Reddy Holding GmbH

48. Reddy Netherlands B.V.

49. Reddy Pharma Iberia SA

50. Reddy Pharma Italia S.R.L

51. Reddy Pharma SAS

52. Dr. Reddy’s (Beijing) Pharmaceutical Co. Limited (from August 19, 2020)

Joint Ventures:

1. DRANU LLC

2. DRES Energy Private Limited

3. 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 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 Navneet Rai Kabra Partner Membership No.: 102328

UDIN: 21102328AAAAAU4019

Hyderabad

January 29, 2021

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 2020

All amounts in Indian Rupees millions 

		Quarter ended									Nine months ended						Year ended
Sl. No.	Particulars	31.12.2020			30.09.2020			31.12.2019			31.12.2020			31.12.2019			31.03.2020
		(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Audited)
1	Revenue from operations
	a) Net sales / income from operations		47,109			47,766			42,607			138,119			120,213			163,574
	b) License fees and service income		2,187			1,201			1,231			4,319			10,069			11,026
	c) Other operating income		123			142			133			355			399			570
	Total revenue from operations		49,419			49,109			43,971			142,793			130,681			175,170
2	Other income		705			512			673			2,088			5,470			6,206
3	Total income (1 + 2)		50,124			49,621			44,644			144,881			136,151			181,376
4	Expenses
	a) Cost of materials consumed		11,773			9,485			7,528			32,697			22,395			29,848
	b) Purchase of stock-in-trade		6,803			6,889			8,426			18,968			19,584			25,459
	c) Changes in inventories of finished goods, work-in-progress and stock-in-trade		(2,199	)		(573	)		(1,801	)		(6,291	)		(1,746	)		237
	d) Employee benefits expense		9,157			9,488			8,377			27,369			25,247			33,802
	e) Depreciation and amortisation expense		3,112			3,165			2,869			9,200			8,890			11,631
	f) Impairment of non-current assets		5,972			781			13,200			6,753			16,760			16,767
	g) Finance costs		188			252			152			673			753			983
	h) Selling and other expenses		12,520			11,478			11,128			35,130			33,229			44,353
			-
	Total expenses		47,326			40,965			49,879			124,499			125,112			163,080
5	Profit / (loss) before tax and before share of equity accounted investees(3 - 4)		2,798			8,656			(5,235	)		20,382			11,039			18,296
6	Share of profit of equity accounted investees, net of tax		151			73			176			301			456			561
7	Profit / (loss) before tax (5+6)		2,949			8,729			(5,059	)		20,683			11,495			18,857
8	Tax expense / (benefit):
	a) Current tax		1,902			1,724			1,736			6,792			6,199			6,616
	b) Deferred tax		768			(713	)		(1,411	)		(52	)		(7,153	)		(8,019	)
9	Net profit / (loss) after taxes and share of profit of associates (7 - 8)		279			7,718			(5,384	)		13,943			12,449			20,260
10	Other comprehensive income
	a) (i) Items that will not be reclassified subsequently to profit or loss		2,803			(26	)		(200	)		2,984			(86	)		(412	)
	(ii) Income tax relating to items that will not be reclassified to profit or loss		-			-			-			-			-			(22	)
	b) (i) Items that will be reclassified subsequently to profit or loss		930			258			606			1,919			563			(448	)
	(ii) Income tax relating to items that will be reclassified to profit or loss		(1	)		(138	)		48			(295	)		136			232
	Total other comprehensive income		3,732			94			454			4,608			613			(650	)
11	Total comprehensive income (9 + 10)		4,011			7,812			(4,930	)		18,551			13,062			19,610
12	Paid-up equity share capital (face value Rs. 5/- each)		831			831			831			831			831			831
13	Other equity																	155,157
14	Earnings per equity share (face value Rs. 5/- each)
	Basic		1.68			46.54			(32.48	)		84.07			75.11			122.22
	Diluted		1.67			46.40			(32.48	)		83.83			74.97			121.99
			(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
Sl. No.	Particulars	31.12.2020		30.09.2020		31.12.2019			31.12.2020		31.12.2019		31.03.2020
		(Unaudited)		(Unaudited)		(Unaudited)			(Unaudited)		(Unaudited)		(Audited)
	Segment wise revenue and results:
1	Segment revenue :
	a) Pharmaceutical Services and Active Ingredients		8,841		10,355		8,654			29,361		23,304		32,086
	b) Global Generics		40,778		39,882		35,956			115,752		101,804		138,264
	c) Proprietary Products		124		100		241			280		7,947		7,949
	d) Others		1,412		523		763			2,424		2,058		2,781
	Total		51,155		50,860		45,614			147,817		135,113		181,080
	Less: Inter-segment revenue		1,736		1,751		1,643			5,024		4,432		5,910
	Total revenue from operations		49,419		49,109		43,971			142,793		130,681		175,170
2	Segment results:
	Gross profit from each segment
	a) Pharmaceutical Services and Active Ingredients		1,776		2,292		2,079			6,927		4,169		6,219
	b) Global Generics		23,454		23,685		20,910			68,665		58,117		78,449
	c) Proprietary Products		100		88		246			244		7,751		7,744
	d) Others		1,211		352		492			1,880		1,184		1,626
	Total		26,541		26,417		23,727			77,716		71,221		94,038
	Less: Selling and other un-allocable expenditure/(income), net		23,592		17,688		28,786			57,033		59,726		75,181
	Total profit before tax		2,949		8,729		(5,059	)		20,683		11,495		18,857

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:

1 These results have been prepared in accordance with the Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013, read with the Companies (Indian Accounting Standards) Rules 2015 as amended.

2 During the quarter ended 31 December 2020, there were significant changes to the market conditions for certain of the products forming part of Company’s Global Generics and Proprietary Products segments. The changes include the launch by competitor of generic version of the product, decrease in the market potential of products primarily due to higher than expected price erosion and increased competition, and higher than expected value erosion. Due to these adverse market developments, the Company recorded an impairment loss of:
- Rs. 3,180 million relating to Ethinyl estradiol / Ethenogestral vaginal ring (a generic equivalent to NuvaRing®);
- Rs. 1,587 million relating to Saxagliptin and metformin (generic version of Kombiglyze-XR) and Phentermine and Topiramate (generic version of Qsymia®); and
- Rs. 1,159 million relating to other intangible assets forming part of the Company’s Global Generics and Proprietary Products segments.
In addition, an amount of Rs. 46 million was recorded as impairment loss pertaining to property, plant and equipment on write-down of assets to fair value less costs to sell forming part of Company’s Global generics segment.

3 During the quarter ended 31 December 2020, the Company entered into a definitive agreement with Glenmark Pharmaceuticals Ltd. to acquire, certain brands in various Emerging Market countries for a total consideration of Rs. 1,516 million. The said transaction was accounted for as an acquisition of product related intangibles.

4 Impairment expense of Rs. 781 million for the quarter ended 30 September 2020 comprises of:
- Rs. 728 million pertaining to product related intangible forming part of Company’s Proprietary Segment due to decrease in the market potential for the product;
- Rs. 53 million pertaining to certain product related intangibles forming part of Company’s Global generics Segment due to Company’s decision to discontinue their further development.

5 Tax expense for the quarter ended 30 September 2020 includes benefit on account of recognition of deferred tax asset amounting to Rs. 1,012 million pursuant to a planned restructuring activity between the Group companies. The said restructuring activity was concluded during the quarter ended 31 December 2020.

6 On 10 June 2020, the Company completed the acquisition of select divisions of Wockhardt Limited’s branded generics business in India and the territories of Nepal, Sri Lanka, Bhutan and Maldives. The business comprises a portfolio of 62 brands in multiple therapy areas, such as respiratory, neurology, venous malformations, dennatology, gastroenterology, pain, and vaccines. This entire portfolio has been transferred to the Company, along with related sales and marketing teams, the manufacturing plant located in Baddi, Himachal Pradesh, and employees. During the quarter ended 30 September 2020, the Company completed the purchase price allocation. The fair value of consideration transferred is Rs.16,115 million. The Company recognised Rs. 373 million, Rs. 14,888 million and Rs. 530 million towards property, plant and equipment, intangible assets, and goodwill, respectively. The acquisition pertains to Company’s Global Generics segment.

7 “Revenue from operations” for the year ended 31 March 2020 includes an amount of Rs. 7,486 million (U.S.$108.7 million) towards license fee for selling US and select territory rights for ZEMBRACE^® SYMTOUCH^® (sumatriptan injection) 3 mg and TOSYMRA^® (sumatriptan nasal spray) 10 mg, (formerly referred to as “DFN-02”) to Upsher-Smith Laboratories, LLC. The costs associated with this transaction are Rs. 328 million.

8 “Other income” for the year ended 31 March 2020 includes an amount of Rs. 3,457 million received from Celgene, pursuant to a settlement agreement entered in April 2019. The agreement effectively settles any claim the Company or its affiliates may have had 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 REVLIMID brand capsules, (Lenalidomide) pending before Health Canada.

 

 

DR. REDDY’S LABORATORIES LIMITED

9 Total impairment charge for the year ended 31 March 2020 is Rs. 16,767 million, of which Rs. 11,137 million was towards impairment of gNuvaring, Rs. 4,385 million was towards ramelteon, tobramycin and imiquimod, and the balance is towards other product related intangibles forming part of Company’s Global generics and Proprietary Products segments.

10 Tax benefit for the year ended 31 March 2020 was primarily due to recognition of deferred tax asset of:
- Rs. 4,989 million towards MAT recoverable pursuant to enactment of Taxation Laws (Amendment) Act, 2019;
- Rs. 1,264 million pursuant to a planned restructuring activity between the group Companies.

11 The Code on Social Security, 2020 (‘Code’) received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the related final rules have not yet been issued and the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code and the rules thereunder when they come into effect.

12 On 22 October 2020, the Company experienced a cybersecurity incident related to ransomware. The Company could contain the incident in a timely fashion and has also ensured that all traces of the infection are completely cleaned from the network. All affected systems were restored and brought back to normalcy in the order of priority. Based on our forensic investigation, no evidence was found of any data breaches leading to personally identifiable information. Since then, the Company has also been focused on implementing significant improvements to its cyber and data security systems to safeguard from such risks in the future.

13 The Company continues to consider the impact of COVID-19 pandemic in assessing the recoverability of receivables, goodwill, intangible assets, and certain investments. For this purpose, the Company considered internal and external sources of information up to the date of approval of these financial results. The Company based on its judgements, estimates and assumptions including sensitivity analysis 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.

14 The unaudited results were reviewed by the Audit Committee of the Board at their meeting held on 28 January 2021 and approved by the Board of Directors of the Company at their meeting held on 29 January 2021.

15 The results for the quarter and nine months ended 31 December 2020 were subject to a “Limited Review” by the Statutory Auditors of the Company. An unqualified report has been issued by them thereon.

By order of the Board

For Dr. Reddy’s Laboratories Limited

Place: Hyderabad	G V Prasad
Date: 29 January 2021	Co-Chairman & Managing Director