EX-99.2 3 drr0560_ex99-2.htm EXHIBIT 99.2

 

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