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 Half Year Ended 30 September, 2024” (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: 24213271BKELLB2962

Place: Hyderabad

Date: November 05, 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 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		58,534			58,076			48,037			116,610			102,071			192,764
	b) License fees and service income		8,254			163			154			8,417			321			1,277
	c) Other operating income		175			173			196			348			368			797
	Total revenue from operations		66,963			58,412			48,387			125,375			102,760			194,838
2	Other income		2,076			2,178			2,231			3,935			4,567			8,623
	Total income (1 + 2)		69,039			60,590			50,618			129,310			107,327			203,461
3	Expenses
	a) Cost of materials consumed		9,343			9,111			7,512			18,454			15,651			32,915
	b) Purchase of stock-in-trade		6,565			7,403			4,992			13,968			8,834			19,866
	c) Changes in inventories of finished goods, work-in-progress and stock-in-trade		(930	)		(1,261	)		(1,054	)		(2,191	)		(1,217	)		(2,388	)
	d) Employee benefits expense		8,401			8,559			7,837			16,960			15,239			30,857
	e) Depreciation and amortisation expense		2,600			2,498			2,458			5,098			4,830			9,756
	f) Impairment of non current assets, net		-			-			-			-			-			260
	g) Finance costs		284			71			58			355			103			218
	h) Other expenses		16,368			15,070			12,809			31,119			25,685			54,064
	Total expenses		42,631			41,451			34,612			83,763			69,125			145,548
4	Profit  before tax (1 + 2 - 3)		26,408			19,139			16,006			45,547			38,202			57,913
5	Tax expense
	a) Current tax		7,033			4,666			3,960			11,699			9,347			13,618
	b) Deferred tax		554			301			120			855			535			875
6	Net profit for the period/year (4 - 5)		18,821			14,172			11,926			32,993			28,320			43,420
7	Other comprehensive income / (loss)
	a)    (i) Items that will not be reclassified to profit or loss		-			-			1			-			2			21
	(ii) Income tax relating to items that will not be reclassified to profit or loss		-			-			-			-			-			(7	)
	b)    (i) Items that will be reclassified subsequently to profit or loss		(88	)		55			(802	)		(33	)		(281	)		(446	)
	(ii) Income tax relating to items that will be reclassified to profit or loss		22			(14	)		201			8			71			114
	Total other comprehensive (loss) / income		(66	)		41			(600	)		(25	)		(208	)		(318	)
8	Total comprehensive income (6 + 7)		18,755			14,213			11,326			32,968			28,112			43,102
9	Paid-up equity share capital (face value Re. 1/- each)		834			834			834			834			834			834
10	Other equity																	241,574
11	Earnings per equity share (face value Re. 1/- each)
	Basic		22.60			17.02			14.34			39.62			34.06			52.19
	Diluted		22.56			16.99			14.31			39.55			33.99			52.09
			(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		7,972			8,520			6,357			16,492			13,242			30,742
	b) Global Generics		61,467			52,447			43,995			113,914			93,673			173,405
	c) Others		23			61			128			84			259			678
	Total		69,462			61,028			50,480			130,490			107,174			204,825
	Less: Inter-segment revenue		2,499			2,616			2,093			5,115			4,414			9,987
	Total revenue from operations		66,963			58,412			48,387			125,375			102,760			194,838
2	Segment results
	Profit / (loss) before tax and interest from each segment
	a) Pharmaceutical Services and Active Ingredients		(146	)		(70	)		(540	)		(216	)		(1,136	)		(287	)
	b) Global Generics		26,800			19,667			16,174			46,467			38,666			57,670
	c) Others		20			97			108			117			99			536
	Total		26,674			19,694			15,742			46,368			37,629			57,919
	Less: (i) Finance costs		284			71			58			355			103			218
	(ii) Other un-allocable expenditure / (income), net		(18	)		484			(322	)		466			(676	)		(212	)
	Total profit before tax		26,408			19,139			16,006			45,547			38,202			57,913

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	The 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 05 November 2024. The Statutory Auditors have carried out a limited review on the unaudited standalone financial results and issued 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) Dividend income of Rs. 445 million recognised in June 2023, declared by Kunshan Rotan Reddy Pharmaceutical Company Limited, joint venture of the company.
3	During the quarter and half year ended 30 September 2024, an amount of Rs. 896 million and Rs. 1,700 million respectively and during quarter and half year ended 30 September 2023, an amount of Rs. 1,590 million and Rs. 2,263 million respectively, representing government grants have been accounted as a reduction from cost of material consumed.

 

 

DR. REDDY'S LABORATORIES LIMITED

4	Pursuant 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.
5	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.
	Further, the Company also received Rs. 8,113 million (excluding GST) as consideration towards transfer of its nutraceutical and vitamins, minerals, herbals, and supplements portfolio to Nutraceuticals subsidiary as part of the definitive agreement. This has been recorded as License fees for the quarter and half year ended 30 September 2024.
	This acquisition pertains to Company’s Global Generics segment.

6	The 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 ADSs 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.
7	The 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.
8	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 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

9 Balance sheet	All amounts in Indian Rupees millions
		As at		As at
Particulars		30.09.2024		31.03.2024
		(Unaudited)		(Audited)
ASSETS
Non-current assets
Property, plant and equipment			54,419		51,094
Capital work-in-progress			15,754		11,719
Goodwill			853		853
Other intangible assets			23,341		23,944
Intangible assets under development			391		391
Financial assets
Investments			99,686		32,027
Loans			15		617
Other financial assets			873		919
Tax assets, net			1,023		3,161
Other non-current assets			790		709
Total non-current assets			197,145		125,434
Current assets
Inventories			45,679		40,189
Financial assets
Investments			25,333		41,179
Trade receivables			59,514		46,239
Derivative instruments			242		165
Cash and cash equivalents			983		2,014
Other bank balances			5,547		10,155
Other financial assets			14,288		22,078
Other current assets			17,865		16,140
Total current assets			169,451		178,159
TOTAL ASSETS			366,596		303,593
EQUITY AND LIABILITIES
Equity
Equity share capital			834		834
Other equity			268,245		241,574
Total Equity			269,079		242,408
Liabilities
Non-current liabilities
Financial liabilities
Lease liabilities			480		495
Provisions			92		93
Deferred tax liabilities, net			5,007		4,161
Other non-current liabilities			952		1,055
Total non-current liabilities			6,531		5,804
Current liabilities
Financial liabilities
Borrowings			37,100		7,100
Lease liabilities			307		334
Trade payables
Total outstanding dues of micro enterprises and small enterprises			240		268
Total outstanding dues of creditors other than micro enterprises and small enterprises			21,618		20,180
Derivative instruments			322		290
Other financial liabilities			18,826		17,023
Liabilities for current tax, net			4,066		670
Provisions			2,977		3,283
Other current liabilities			5,530		6,233
Total current liabilities			90,986		55,381
TOTAL EQUITY AND LIABILITIES			366,596		303,593

 

 

DR. REDDY'S LABORATORIES LIMITED

10 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			45,547			38,202
Adjustments for:
Fair value changes and profit on sale of financial instruments measured at FVTPL**, net			(1,988	)		(1,477	)
Depreciation and amortisation expense			5,098			4,830
Allowance for credit losses (on trade receivables and other advances)			87			111
Profit on sale or de-recognition of non-current assets, net			(4	)		(380	)
Unrealized exchange (gain)/loss, net			(117	)		105
Interest income			(1,718	)		(1,425	)
Finance costs			355			103
Equity settled share-based payment expense			189			180
Inventories write-down			1,635			769
Dividend income			-			(445	)
Changes in operating assets and liabilities:
Trade receivables			(13,354	)		(13,753	)
Inventories			(7,125	)		(6,475	)
Trade payables			1,410			3,012
Other assets and other liabilities, net			(2,100	)		(3,014	)
Cash generated from operations			27,915			20,343
Income taxes paid, net			(6,166	)		(4,643	)
Net cash generated from operating activities			21,749			15,700
Cash flows from/(used in) investing activities :
Purchase of property, plant and equipment			(10,204	)		(6,379	)
Proceeds from sale of property, plant and equipment			194			414
Purchase of other intangible assets			(577	)		(964	)
Proceeds from sale of other intangible assets			104			21
Purchase of investments (including bank deposits)			(113,202	)		(65,458	)
Proceeds from sale of investments (including bank deposits)			143,644			62,762
Equity investments in subsidiary/associates			(67,601	)		(500	)
Dividend received			-			445
Interest income received			1,619			683
Loans and advances repaid/(given) by/to subsidiaries			602			(602	)
Net cash used in investing activities			(45,421	)		(9,578	)
Cash flows from/(used in) financing activities :
Proceeds from issuance of equity shares (including treasury shares)			157			765
Proceeds/(Repayment of) from short-term loans and borrowings, net			29,985			(6	)
Payment of principal portion of lease liabilities			(140	)		(126	)
Dividend paid			(6,662	)		(6,648	)
Interest paid			(683	)		(117	)
Net cash from/(used in) financing activities			22,657			(6,132	)
Net decrease in cash and cash equivalents			(1,015	)		(10	)
Effect of exchange rate changes on cash and cash equivalents			(16	)		3
Cash and cash equivalents at the beginning of the period			2,014			1,123
Cash and cash equivalents at the end of the period			983			1,116

*Rounded off to million.

**FVTPL (fair value through profit or loss)

By order of the Board

For Dr. Reddy's Laboratories Limited

Place:	Hyderabad	G V Prasad
Date:	05 November 2024	Co-Chairman & Managing Director