EX-99.3 4 drr0689_ex99-3.htm EXHIBIT 99.3

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 Half Year ended 30 September, 2024 (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 associates 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 Master Circular 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:

 

Holding Company:

Dr. Reddy’s Laboratories Limited

 

Subsidiaries:

1.Aurigene Discovery Technologies (Malaysia) Sdn. Bhd.
2.Aurigene Oncology Limited (Formerly, Aurigene Discovery Technologies Limited)
3.Aurigene Pharmaceutical Services Limited
4.beta Institut gemeinnützige GmbH
5.betapharm Arzneimittel GmbH
6.Cheminor Investments Limited
7.Chirotech Technology Limited (Liquidated)
8.Dr. Reddy’s Farmaceutica Do Brasil Ltda.
9.Dr. Reddy’s Laboratories (EU) Limited
10.Dr. Reddy’s Laboratories (Proprietary) Limited
11.Dr. Reddy’s Laboratories (UK) Limited
12.Dr. Reddy’s Laboratories Canada, Inc.
13.Dr. Reddy’s Laboratories Chile SPA.

 

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 

 

14.Dr. Reddy’s Laboratories Inc.
15.Dr. Reddy’s Laboratories Japan KK
16.Dr. Reddy’s Laboratories Kazakhstan LLP
17.Dr. Reddy’s Laboratories Louisiana LLC
18.Dr. Reddy’s Laboratories Malaysia Sdn. Bhd.
19.Dr. Reddy’s Laboratories New York, LLC
20.Dr. Reddy’s Laboratories Philippines Inc.
21.Dr. Reddy’s Laboratories Romania Srl
22.Dr. Reddy’s Laboratories SA
23.Dr. Reddy’s Laboratories Taiwan Limited
24.Dr. Reddy’s Laboratories (Thailand) Limited
25.Dr. Reddy’s Laboratories LLC, Ukraine
26.Dr. Reddy’s New Zealand Limited.
27.Dr. Reddy’s Srl
28.Dr. Reddy’s Bio-Sciences Limited
29.Dr. Reddy’s Laboratories (Australia) Pty. Limited
30.Dr. Reddy’s Laboratories SAS
31.Dr. Reddy’s Research and Development B.V.
32.Dr. Reddy’s Venezuela, C.A. (till April 17, 2024)
33.Dr. Reddy’s (Beijing) Pharmaceutical Co. Limited
34.DRL Impex Limited
35.Dr. Reddy’s Formulations Limited
36.Idea2Enterprises (India) Pvt. Limited
37.Imperial Owners and Land Possessions Private Limited (Formerly, Imperial Credit Private Limited)
38.Industrias Quimicas Falcon de Mexico, S.A. de CV
39.Lacock Holdings Limited
40.Dr. Reddy’s Laboratories LLC, Russia
41.Promius Pharma LLC
42.Reddy Holding GmbH
43.Reddy Netherlands B.V.
44.Reddy Pharma Iberia SAU
45.Reddy Pharma Italia S.R.L.
46.Reddy Pharma SAS
47.Svaas Wellness Limited
48.Nimbus Health GmbH
49.Dr. Reddy’s Laboratories Jamaica Limited
50.Dr. Reddy’s and Nestle Health Science Limited (Formerly, Dr. Reddy’s Nutraceuticals Limited)
51.Northstar Switzerland SARL (from September 30, 2024)
52.North Star OpCo Limited (from September 30, 2024)
53.North Star Sweden AB (from September 30, 2024)

 

Associates:

1.O2 Renewable Energy IX Private Limited
2.Clean Renewable Energy KK 2A Private Limited (from 30 May 2024)

 

Joint Ventures:

1.DRES Energy Private Limited
2.Kunshan Rotam Reddy Pharmaceutical Co. Limited

 

Other Consolidating Entities:

1.Dr. Reddy’s Employees ESOS Trust
2.Cheminor Employees Welfare 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: 24213271BKELLC7849

 

Place: Hyderabad

Date: November 05, 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 HALF YEAR ENDED 30 SEPTEMBER 2024

 

        All amounts in Indian Rupees millions  

Sl.

     Quarter ended     Half year ended     Year ended  
No.   Particulars      30.09.2024        30.06.2024        30.09.2023        30.09.2024        30.09.2023       31.03.2024  
           (Unaudited)        (Unaudited)        (Unaudited)        (Unaudited)        (Unaudited)        (Audited)  
1   Revenue from operations                                                
    a) Sales     78,859       75,396       67,348       154,255       133,491       271,396  
    b) License fees and service income     1,302       1,331       1,454       2,633       2,695       7,768  
    c) Other operating income     221       234       224       455       419       947  
                                                     
    Total revenue from operations     80,382       76,961       69,026       157,343       136,605       280,111  
                                                     
2   Other income     3,075       1,872       3,150       4,747       4,890       8,943  
                                                     
3   Total income (1 + 2)     83,457       78,833       72,176       162,090       141,495       289,054  
                                                     
4   Expenses                                                
    a) Cost of materials consumed     12,872       12,272       9,559       25,144       22,527       44,901  
    b) Purchase of stock-in-trade     12,828       13,801       11,378       26,629       20,149       43,991  
    c) Changes in inventories of finished goods, work-in-progress and stock-in-trade     (2,033 )     (4,256 )     (907 )     (6,289 )     (3,270 )     (6,805 )
    d) Employee benefits expense     13,992       14,137       12,803       28,129       24,700       50,301  
    e) Depreciation and amortisation expense     3,970       3,806       3,755       7,776       7,288       14,700  
    f) Impairment of non-current assets, net     924       5       55       929       66       3  
    g) Finance costs     757       598       353       1,355       724       1,711  
    h) Other expenses     21,034       19,703       16,055       40,537       31,729       68,389  
                                                     
    Total expenses     64,344       60,066       53,051       124,210       103,913       217,191  
                                                     
5   Profit before tax and before share of equity accounted investees(3 - 4)     19,113       18,767       19,125       37,880       37,582       71,863  
                                                     
6   Share of profit of equity accounted investees, net of tax     61       59       42       120       85       147  
                                                     
7   Profit before tax (5+6)     19,174       18,826       19,167       38,000       37,667       72,010  
                                                     
8   Tax expense/(benefit):                                                
    a) Current tax     7,713       5,215       5,901       12,928       13,098       19,459  
    b) Deferred tax     (1,958 )     (313 )     (1,556 )     (2,271 )     (4,303 )     (3,228 )
                                                     
9   Net profit after taxes and share of profit of associates (7 - 8)     13,419       13,924       14,822       27,343       28,872       55,779  
                                                     
10   Net profit after taxes attributable to                                                
    a) Equity shareholders of the parent company     12,557       13,924       14,822       26,481       28,872       55,779  
    b) Non-controlling interests     862       -       -       862       -       -  
                                                     
11   Other comprehensive income/(loss)                                                
    a) (i) Items that will not be reclassified subsequently to profit or loss     (33 )     (91 )     (222 )     (124 )     (116 )     (28 )
    (ii) Income tax relating to items that will not be reclassified to profit or loss     -       -       -       -       -       4  
    b) (i) Items that will be reclassified subsequently to profit or loss     2,978       115       (1,113 )     3,093       (966 )     (749 )
    (ii) Income tax relating to items that will be reclassified to profit or loss     16       (6 )     201       10       (9 )     117  
    Total other comprehensive income/(loss)     2,961       18       (1,134 )     2,979       (1,091 )     (656 )
                                                     
12   Total comprehensive income (9 + 11)     16,380       13,942       13,688       30,322       27,781       55,123  
                                                     
13   Total comprehensive income attributable to                                                
    a) Equity shareholders of the parent company     15,518       13,942       13,688       29,460       27,781       55,123  
    b) Non-controlling interest     862       -       -       862       -       -  
                                                     
14   Paid-up equity share capital (face value Re. 1/- each)     834       834       834       834       834       834  
                                                     
15   Other equity                                             281,714  
                                                     
16   Earnings per equity share attributable to equity shareholders of parent(face value Re. 1/- each)                                                
                                                     
    Basic     15.08       16.72       17.82       31.80       34.73       67.04  
    Diluted     15.05       16.70       17.78       31.75       34.65       66.92  
          (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 
Sl.     Quarter ended   Half year ended   Year ended 

No.

  Particulars  30.09.2024   30.06.2024   30.09.2023   30.09.2024   30.09.2023   31.03.2024 
      (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Audited) 
   Segment wise revenue and results:                              
1  Segment revenue :                              
   a) Pharmaceutical Services and Active Ingredients   11,190    10,472    9,625    21,662    18,990    41,295 
   b) Global Generics   71,636    68,929    61,130    140,565    121,260    245,673 
   c) Others   179    212    683    391    1,276    3,922 
   Total   83,005    79,613    71,438    162,618    141,526    290,890 
                                  
   Less: Inter-segment revenue   2,623    2,652    2,412    5,275    4,921    10,779 
   Total revenue from operations   80,382    76,961    69,026    157,343    136,605    280,111 
                                  
2  Segment results:                              
   Gross profit from each segment                              
   a) Pharmaceutical Services and Active Ingredients   2,521    1,772    1,260    4,293    2,273    6,929 
   b) Global Generics   45,162    44,518    38,872    89,680    77,258    154,272 
   c) Others   89    58    242    147    398    2,423 
   Total   47,772    46,348    40,374    94,120    79,929    163,624 
                                  
   Less: Selling and other un-allocable expenditure/(income), net   28,598    27,522    21,207    56,120    42,262    91,614 
   Total profit before tax   19,174    18,826    19,167    38,000    37,667    72,010 

 

Global Generics includes operations of Biologics business. Inter-segment revenue represents sale 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 the 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 05 November 2024. The Statutory Auditors have carried out a limited review on the unaudited consolidated financial results and issued an unmodified report thereon.

 

2“Other income” for the year ended 31 March 2024 includes :

a. 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.

b. Rs.984 million recognised in September 2023, 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.

 

3During the quarter and half year ended 30 September 2024, an amount of Rs. 906 million and Rs. 1,715 million, respectively and during the quarter and half year ended 30 September 2023 an amount of Rs. 1,598 million and Rs. 2,274 million, respectively representing government grants has been accounted as a reduction from cost of material consumed.

 

4"Impairment of non-current assets, net" Impairment loss recorded during the six months ended 30 September 2024 includes an amount of Rs.907 million pertaining to Haloette® (a generic equivalent to Nuvaring®), a product-related intangible, due to constraints on procurement of the underlying product from its contract manufacturer, resulting in a lower recoverable value compared to the carrying value. This impairment charge pertains to the Company’s Global Generics segment.

 

5Pursuant to the amendment in The Finance Act 2024, resulting in withdrawal of indexation benefit on long-term capital gain, the company has written off Deferred Tax Asset amounting to Rs. 482 million, created in earlier period on land, during the quarter and half year ended 30 September 2024.

 

6Business purchase agreement with Nestlé India:
On 25 April 2024, the Company entered into an agreement with Nestlé India Limited ("Nestlé India") for the manufacturing, development, promotion, marketing, sale, distribution, and commercialization of nutraceutical products and supplements in India, as well as other mutually agreed geographies. These operations will be carried out by Dr. Reddy's Nutraceuticals Limited, established on 14 March 2024. The entity was later renamed as Dr. Reddy's and Nestlé Health Science Limited (the “Nutraceuticals subsidiary”) on 13 June 2024.

Upon completion of the closing conditions, the transaction concluded on 01 August 2024. Consequently, the Company has made an additional investment of Rs.7,340 million in its Nutraceuticals subsidiary, with corresponding infusion from Nestlé India amounting to Rs.7,056 million resulting in a revised shareholding pattern of 51:49 between the Company and Nestlé India. Subsequently, Nutraceuticals subsidiary had purchased the portfolio of nutraceutical products and supplements from Nestlé India for a consideration of Rs.2,231 million. The acquired portfolio consists of Product licenses, sales and marketing teams, contract manufacturers and employees. Based on fair valuation, the company had allocated purchase consideration and recognised Product licenses and other intangibles of Rs.1,982 million, property, plant and equipment and current assets of Rs. 43 million and Goodwill of Rs.207 million.

Upon Closing, the Company had also transferred its nutraceuticals and supplements portfolio to the Nutraceuticals subsidiary as a common control transfer of business.

This acquisition pertains to Company’s Global Generics segment.

Profit after tax attributable to Non-controlling interest for quarter and half year ended 30 September 2024, has arisen primarily on recognition of deferred tax asset on account of transfer of business from parent company to Nutraceuticals subsidiary.As at 30 September 2024, share of 49% held by Nestlé India is recorded under Non-controlling interest of Rs.3,939 million.

 

   

 

   

 

 

 

 

DR. REDDY’S LABORATORIES LIMITED

 

7Business purchase agreement with Haleon:

On June 26, 2024, the Company entered into definitive agreement with Haleon UK Enterprises Limited (“Haleon”) to acquire Haleon’s global portfolio outside of the United States of consumer healthcare brands in the Nicotine Replacement Therapy category (“NRT Business”).

 

The definitive agreement for the acquisition of this NRT Business from Haleon includes the transfer of intellectual property, employees, agreements with commercial manufacturing organization, marketing authorizations and other assets relating to the commercialization of four brands - i.e., Nicotinell, Nicabate, Thrive, and Habitrol. The acquisition is inclusive of all formats such as lozenge, patch, spray and/or gum in all applicable global markets outside of the United States.

 

The closing conditions were met, and the transaction was completed on 30 September 2024.

 

Upon Completion, the company acquired the shares of Northstar Switzerland SARL from Haleon for an upfront cash payment of Rs. 51,407 million (GBP 458 million). An additional consideration of up to Rs. 4,714 million (GBP 42 million) is payable which is contingent upon achieving agreed-upon sales targets in Calender years 2024 and 2025, bringing the total potential consideration to Rs. 56,121 million (GBP 500 million).

 

The Company completed the provisional allocation of purchase price. The fair value of consideration transferred is Rs. 55,897 million (GBP 498 million). Based on fair valuation, the Company recognised Intangibles (Brands) of Rs. 54,920 million (GBP 488.80 million), Deferred tax liabilities of Rs. 8,469 million (GBP 75.45 million) and Goodwill of Rs. 7,249 million (GBP 64.58 million). This acquisition pertains to the Company’s Global Generics segment.

 

Further, The company executed a forward exchange contract to hedge its exposure to the payment made in GBP. Upon maturity, hedge gain of Rs. 2,197 million (GBP 20 million) was reclassified from the cash flow hedge reserves and has been adjusted in consideration paid upon closing of the transaction.

 

Acquisition related costs amounting to Rs.1,017 and Rs.280 were recognised as expenses under “Other expenses” during the half year ended 30 September 2024 and the year ended 31 March 2024, respectively.

 

This marketing authorisation will transition gradually into the Company in a phased approach between April 2025 and February 2026. During transition period, Haleon group will provide distribution and related services in the markets, facilitating successful integration of the business across various geographies into the Company.

 

8The Board of Directors of the Company at their meeting held on 27 July 2024 have approved the sub-division/ split of each equity share having a face value of Rupees five each, fully paid-up, into five equity shares having a face value of Rupee One each, fully paid-up (the “stock split”), by alteration of the capital clause of the Memorandum of Association of the Company. Further, each American Depositary Share (ADS) of the Company will continue to represent one underlying equity share as at present and, therefore, the number of ADS held by an American Depositary Receipt(ADR) holder would consequently increase in proportion to the increase in number of equity shares.

 

On 12 September 2024 the approval of the shareholders of the Company was obtained through a postal ballot process with a requisite majority.

 

Consequently, the authorized share capital was sub-divided into 1,450,000,000 equity shares, the paid up share capital is sub-divided into 834,384,730 equity shares and Treasury shares are sub-divided into 1,338,570 having a face value of Rupee One each w.e.f record date of 28 October 2024.

 

Post stock split, the number of each stock option vested and unvested and not exercised as on the record date were sub-divided into five options and the exercise price was proportionately adjusted.

 

The affect of stock split was considered in the computation of basic and diluted EPS for the quarter and half year ended 30 September 2024 and prior periods have been restated considering face value of Rupee One each in accordance with Ind AS 33- "Earnings per Share" and rounded off to the nearest decimals.

 

9The Company considered the uncertainties relating to the escalation of conflict in the middle east, and duration of 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.

 

10The 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 July 6, 2021, the Company received a subpoena from the SEC for the production of related documents, which were provided to the SEC.

 

The Company has continued to engage with the SEC and DOJ, including through submissions and presentations regarding the initial complaint and additional complaints relating to other markets, and in relation to its Global Compliance Framework, which includes enhancement initiatives undertaken by the Company, and 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 and can also lead to civil and criminal sanctions under relevant laws, the outcomes, including liabilities, are not reasonably ascertainable at this time.

   

 

   

 

 

 

 

DR. REDDY’S LABORATORIES LIMITED

 

11 Consolidated Balance Sheet All amounts in Indian Rupees millions

   As at 
Particulars  30.09.2024   31.03.2024 
   (Unaudited)   (Audited) 
ASSETS          
Non-current assets          
Property, plant and equipment   67,263    62,487 
Capital work-in-progress   18,521    13,510 
Goodwill   13,159    5,501 
Other intangible assets   91,434    36,268 
Intangible assets under development   685    683 
Investment in equity accounted investees   4,779    4,196 
Financial assets          
Investments   1,200    1,059 
Other financial assets   1,170    1,212 
Deferred tax assets, net   17,295    10,578 
Tax assets, net   2,279    3,718 
Other non-current assets   1,301    1,373 
Total non-current assets   219,086    140,585 
           
Current assets          
Inventories   72,039    63,552 
Financial assets          
Investments   30,647    44,050 
Trade receivables   84,398    80,298 
Derivative financial instruments   400    169 
Cash and cash equivalents   11,330    7,107 
Other bank balances   8,954    10,170 
Other financial assets   15,524    22,527 
Other current assets   24,906    20,180 
Total current assets   248,198    248,053 
TOTAL ASSETS   467,284    388,638 
           
EQUITY AND LIABILITIES          
Equity          
Equity share capital   834    834 
Other equity   306,659    281,714 
Equity attributable to equity shareholders of the parent company   307,493    282,548 
Non-Controlling interests   3,939    - 
Total equity   311,432    282,548 
           
Liabilities          
Non-current liabilities          
Financial liabilities          
Borrowings   3,800    3,800 
Lease liabilities   3,561    2,190 
Other financial liabilities   2,806    - 
Provisions   331    239 
Deferred tax liabilities, net   13,762    841 
Other non-current liabilities   2,385    3,140 
Total non-current liabilities   26,645    10,210 
           
Current liabilities          
Financial liabilities          
Borrowings   40,022    12,723 
Lease liabilities   1,158    1,307 
Trade payables          
Total outstanding dues of micro enterprises and small enterprises   241    282 
Total outstanding dues of creditors other than micro enterprises and small enterprises   29,965    25,862 
Derivative financial instruments   337    468 
Other financial liabilities   35,929    34,540 
Liabilities for current tax, net   5,089    2,341 
Provisions   6,361    6,920 
Other current liabilities   10,105    11,437 
Total current liabilities   129,207    95,880 
TOTAL EQUITY AND LIABILITIES   467,284    388,638 

 

   

 

   

 

 

 

 

DR. REDDY’S LABORATORIES LIMITED

 

12 Consolidated statement of cashflows All amounts in Indian Rupees millions

   Half year ended 
Particulars  30.09.2024   30.09.2023 
   (Unaudited)   (Unaudited) 
Cash flows from/(used in) operating activities :        
Profit before tax   38,000    37,667 
Adjustments for:          
Fair value changes and profit on sale of financial instruments measured at FVTPL*, net   (2,245)   (1,527)
Depreciation and amortisation expense   7,776    7,288 
Impairment of non-current assets   929    66 
Allowance for credit losses (on trade receivables and other advances)   96    137 
(Profit)/loss on sale or de-recognition of non-current assets, net   (447)   (445)
Share of profit of equity accounted investees   (120)   (85)
Unrealized exchange (gain)/loss, net   504    (1,179)
Interest income   (1,409)   (1,048)
Finance costs   1,355    724 
Equity settled share-based payment expense   208    211 
Inventories write-down   2,844    1,418 
Changes in operating assets and liabilities:          
Trade receivables   (4,182)   2,689 
Inventories   (11,330)   (9,340)
Trade and other payables   4,062    4,568 
Other assets and other liabilities, net   (9,474)   (3,482)
Cash generated from operations   26,565    37,662 
Income tax paid, net   (8,754)   (8,486)
Net cash generated from operating activities   17,811    29,176 
           
Cash flows (used in)/from investing activities :          
Purchase of property, plant and equipment   (12,646)   (7,323)
Proceeds from sale of property, plant and equipment   411    487 
Purchase of other intangible assets   (1,687)   (8,787)
Proceeds from sale of other intangible assets   419    21 
Investment in equity accounted investees   (317)   - 
Payment for acquisition of businesses   (51,441)   - 
Purchase of investments (including bank deposits)   (138,326)   (70,008)
Proceeds from sale of investments (including bank deposits)   162,988    71,815 
Interest and dividend received   1,280    597 
Dividend received from equity accounted investees   -    445 
Net cash (used in)/from investing activities   (39,319)   (12,753)
           
Cash flows (used in) financing activities :          
Proceeds from issuance of equity shares (including treasury shares)   157    765 
Proceeds/(Repayment) of short-term borrowings, net   27,556    (1,054)
Repayment of long-term loans and borrowings   -    (3,800)
Proceeds from long term borrowings   -    3,800 
Proceeds from issuance of equity shares in Subsidiary to Non-controlling interest   7,056    - 
Payment of principal portion of lease liabilities   (735)   (524)
Dividend paid   (6,662)   (6,648)
Interest paid   (1,681)   (1,051)
Net cash from/(used in) financing activities   25,691    (8,512)
           
Net increase/(decrease) in cash and cash equivalents   4,184    7,911 
Effect of exchange rate changes on cash and cash equivalents   (6)   (155)
Cash and cash equivalents at the beginning of the period   7,107    5,779 
Cash and cash equivalents at the end of the period(1)   11,285    13,535 

  

**FVTPL (fair value through profit or loss)

(1)Adjusted for bank-overdraft of Rs. 45 million and Rs. 4 million for the half year ended 30 September 2024 and 30 September 2023, respectively.

 

      By order of the Board
      For Dr. Reddy’s Laboratories Limited
       
       
Place: Hyderabad     G V Prasad
Date: 05 November 2024     Co-Chairman & Managing Director