|
|
|
H1 Performance Summary
Rs. 8,644 Cr
Revenue
[Up: 15% YoY]
54.9%
Gross Margin
[H1 FY19: 55.4%]
Rs. 2,884 Cr
SGNA expenses
[Up: 18% YoY]
Rs. 727 Cr
R&D expenses
[8.4% of Revenues]
Rs. 1,616 Cr
Profit before Tax
[Up: 50% YoY]
Rs. 1,755 Cr
Profit after Tax
[Up: 83% YoY]
|
|
Q2 Performance Summary
Rs. 4,801 Cr
Revenue
[Up: 25% QoQ; 26% YoY]
57.5%
Gross Margin
[Q1 FY20: 51.7%; Q2 FY19: 55.0%]
Rs.1,678 Cr
SGNA expenses
[Up: 39% QoQ, 36% YoY]
Rs. 366 Cr
R&D expenses
[7.6% of Revenues]
Rs. 766 Cr
Profit before Tax
[Down: 10% QoQ; Up: 33% YoY]
Rs. 1,093 Cr
Profit after Tax
[Up: 65% QoQ; Up: 117% YoY]
|
|
Note: Financials include
other income of Rs. 3.5 billion received from Celgene pursuant to
settlement for Lenalidomide
|
All amounts in millions, except EPS All
US dollar amounts based on convenience translation rate of I USD = Rs. 70.64
Dr. Reddy’s Laboratories Limited and
Subsidiarie
Consolidated Income Statement
|
Particulars
|
Q2 FY20
|
Q2 FY19
|
YoY
Gr % |
Q1 FY20
|
QoQ
Gr% |
|||
|
($)
|
(Rs.)
|
($)
|
(Rs.)
|
($)
|
(Rs.)
|
|||
|
Revenues
|
680
|
48,009
|
538
|
37,978
|
26
|
544
|
38,435
|
25
|
|
Cost of Revenues
|
289
|
20,389
|
242
|
17,081
|
19
|
263
|
18,576
|
10
|
|
Gross Profit
|
391
|
27,620
|
296
|
20,897
|
32
|
281
|
19,859
|
39
|
|
Operating Expenses
|
|
|
|
|
|
|
|
|
|
Selling, General & Administrative
expenses
|
238
|
16,777
|
175
|
12,372
|
36
|
171
|
12,065
|
39
|
|
Research and Development expenses
|
52
|
3,662
|
58
|
4,120
|
(11)
|
51
|
3,609
|
1
|
|
Other operating (income)
|
-2
|
-135
|
-9
|
-641
|
(79)
|
-53
|
-3,759
|
(96)
|
|
Results from operating activities
|
104
|
7,316
|
71
|
5,046
|
45
|
112
|
7,944
|
(8)
|
|
Net finance (income)
|
-3
|
-231
|
-9
|
-625
|
(63)
|
-6
|
-393
|
(41)
|
|
Share of (profit) / loss of equity
accounted investees
|
-2
|
-117
|
-2
|
-109
|
8
|
-2
|
-163
|
(28)
|
|
Profit before income tax
|
108
|
7,664
|
82
|
5,780
|
33
|
120
|
8,500
|
(10)
|
|
Income tax expense / (benefit)
|
-46
|
-3,261
|
11
|
742
|
(539)
|
26
|
1,872
|
(274)
|
|
Profit for the period
|
155
|
10,925
|
71
|
5,038
|
117
|
94
|
6,628
|
65
|
|
|
|
|
|
|
|
|||
|
Diluted Earnings Per Share (EPS)
|
0.93
|
65.82
|
0.43
|
30.31
|
117
|
0.57
|
39.91
|
65
|
|
As % to Revenues
|
Q2 FY20
|
Q2 FY19
|
Q1
FY20
|
|||||
|
Gross
Profit
|
57.5
|
55.0
|
51.7
|
|||||
|
SG&A
|
34.9
|
32.6
|
31.4
|
|||||
|
R&D
|
7.6
|
10.8
|
9.4
|
|||||
|
EBITDA
|
|
29.9
|
|
22.8
|
|
|
29.5
|
|
|
PBT
|
16.0
|
15.2
|
22.1
|
|||||
|
PAT
|
22.8
|
13.3
|
17.2
|
EBITDA Computation
|
Particulars
|
Q2 FY20
|
Q2 FY19
|
Q1 FY20
|
|||||
|
($)
|
(Rs.)
|
($)
|
(Rs.)
|
($)
|
(Rs.)
|
|||
|
Profit before Income Tax
|
108
|
7,664
|
82
|
5,780
|
120
|
8,500
|
||
|
Interest (income) net*
|
-3
|
(226)
|
(2)
|
(132)
|
(3)
|
(239)
|
||
|
Depreciation
|
33
|
2,306
|
29
|
2,033
|
30
|
2,124
|
||
|
Amortization
|
15
|
1,033
|
14
|
965
|
14
|
959
|
||
|
Impairment
|
50
|
3,561
|
|
-
|
-
|
|
(0)
|
(1)
|
|
EBITDA
|
203
|
14,338
|
122
|
8,646
|
161
|
11,343
|
||
*
Includes income from Investments
All amounts in millions, except EPS All US dollar amounts based on
convenience translation rate of I USD = Rs. 70.64
Key Balance Sheet Items
|
Particulars
|
As on 30th Sep, 2019
|
As on 30th June 2019
|
As on 30th Sep 2018
|
|||
|
($)
|
(Rs.)
|
($)
|
(Rs.)
|
($)
|
(Rs.)
|
|
|
Cash and cash equivalents and other
investments
|
431
|
30,446
|
403
|
28,439
|
295
|
20,837
|
|
Trade receivables (current &
non-current)
|
597
|
42,153
|
537
|
37,961
|
656
|
46,317
|
|
Inventories
|
496
|
35,033
|
497
|
35,137
|
460
|
32,490
|
|
Property, plant and equipment
|
750
|
53,008
|
766
|
54,083
|
802
|
56,640
|
|
Goodwill and Other Intangible assets
|
628
|
44,340
|
677
|
47,821
|
726
|
51,290
|
|
Loans and borrowings (current &
non-current)
|
447
|
31,545
|
487
|
34,387
|
786
|
55,522
|
|
Trade payables
|
218
|
15,434
|
210
|
14,842
|
199
|
14,073
|
|
Equity
|
2,177
|
1,53,816
|
2,070
|
1,46,208
|
1,861
|
1,31,446
|
Revenue Mix by Segment
|
Particulars
|
Q2 FY20
|
Q2 FY19
|
YoY
Growth % |
Q1 FY20
|
QoQ
Growth % |
|
(Rs.)
|
(Rs.)
|
(Rs.)
|
|||
|
Global Generics
|
32,816
|
30,536
|
7%
|
32,982
|
-1%
|
|
North America
|
14,265
|
14,265
|
0%
|
16,322
|
-13%
|
|
Europe
|
2,764
|
1,915
|
44%
|
2,404
|
15%
|
|
India
|
7,511
|
6,864
|
9%
|
6,960
|
8%
|
|
Emerging Markets
|
8,276
|
7,492
|
10%
|
7,296
|
13%
|
|
Pharmaceutical Services and Active
Ingredients (PSAI)
|
7,107
|
6,029
|
18%
|
4,539
|
57%
|
|
Proprietary Products & Others
|
8,086
|
1,413
|
472%
|
914
|
785%
|
|
Total
|
48,009
|
37,978
|
26%
|
38,435
|
25%
|
Segmental
Analysis
Global
Generics (GG)
Revenues
from GG segment at Rs. 32.8 billion. Year-on-year
growth of 7%, primarilydriven by Europe, Emerging Markets and India. Sequentially
declined by 1%.
·
Revenues
from North America at Rs. 14.3billion.
Year-on-year revenues remained flat. Sequential
decline of 13%, on account of price erosion and lower volumes. Furtherimpact on
account of voluntary recall of ranitidine and temporary disruption in supplies
due to logistics issues faced during this quarter.We launched eight new
products during the quarter, which are Carboprost,Ramelteon,Fosaprepitant,
Pregabalin, Vigabatrin, Docetaxel 160mg, Bupropion SR and OTC Guaif / Psuedo.
As
of 30th September 2019, cumulatively 99 generic filings are pending
for approval with the USFDA (96 ANDAs and 3 NDAs under 505(b)(2) route). Of
these 96 ANDAs, 55 are Para IVs out of which we believe 31 have ‘First to File’
status.
·
Revenues from Europe at Rs. 2.8 billion. Year-on-year
growth of 44%, primarily on account of new products and volume traction in base
business partly offset by lower realizations. Sequential growth is 15%.
·
Revenues
from India atRs. 7.5 billion. Year-on-year
growth of 9%, driven by new products, improved realizations and volume traction
in base business. Sequential growth is 8%.
·
Revenues from Emerging
Markets at Rs. 8.3 billion. Year-on-year growth is 10%.
Sequential growth is 13%.
-
Revenues from Russia at
Rs. 4.1 billion. Year-on-year growth of 8%. Growth primarily driven by increase
in volumes coupled with better realizations in some of the key molecules.
-
Revenues
from other CIS countries and Romania
at Rs. 1.7
billion. Year-on-year growth of 16% largely driven by new products and better
realizations in some of the key molecules.
-
Revenues
from Rest of World (RoW)markets at Rs. 2.5 billion.Year-on-year growthof 11%, primarily
driven by new products, volume traction partly offset by price erosions in some
of the key molecules.
Pharmaceutical Services and Active Ingredients
(PSAI)
·
Revenues
from PSAI at Rs. 7.1billion.Year-on-year
growth of 18% and sequential growth of57%. Growth largely driven by increase in
volumes from existing products.
Proprietary
Products (PP)
·
Revenues
from PP at Rs.
7.4billion. It includesRs. 7.2billion
towards license fee for selling US and select territory rights for two of our Neurology
brands ZEMBRACE® SYMTOUCH® (sumatriptan injection) 3 mg and TOSYMRATM (sumatriptan
nasal spray) 10 mg, to Upsher-Smith Laboratories, LLC. The costs associated
with this transaction are Rs. 328 million.
Income
Statement Highlights:
·
Gross
profit margin at 57.5%, improved by ~590 bps sequentially and ~250 bps over
that of previous year. Gross profit margin for GG and PSAI business segments
are at 55.5% and 24.6% respectively.
-
gross
margin is benefitted due to revenue recognition of the PP Neurobrands
-
partly
impacted by certain one-off’s, including but not restricted to the impact of
the voluntary recall of Ranitidine in the US market
-
adjusted
for one-off’s, normalized gross profit margin is ~51.5%
-
on
a normalized base, the year on yeardecline is primarily on account of price
erosion in the US.
·
SG&A
expenses at Rs. 16.8 billion, an increase of
36%on a year-on-year basis and 39% sequentially.This includes an amount of Rs.
3.6 billion recognized as an impairment charge on three product related
intangibles (viz., Ramelteon, Tobramycin and Imiquimod). There have been
certain additional one-offs including but not restricted to the costs
associated with the sale of two neurology brands. Adjusted for the one-offs,
the normalized SG&A expenses are lower compared to the previous quarter.
·
R&D
expenses at Rs. 3.7 billion. As % to Revenues- Q2 FY20: 7.6% | Q1 FY 20:
9.4% | Q2 FY19: 10.8%. We continue to focus on building a healthy development
pipeline across all our focused markets.
·
Other
operating income at Rs. 135 million compared
to Rs. 641 million in Q2 FY19 and Rs. 3,759 million
in Q1 FY 20. Previous year includes gain of Rs. 464
million on account of
sale of rights relating to Cloderm brand (including its authorized generic) and
profit on sale of antibiotic manufacturing facility in Bristol, US. Q1 FY 20 includes Rs.
3,457million received from Celgene pursuant to an agreement
entered towards settlement of 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.
·
Net
Finance income at Rs. 231 million compared to Rs. 625 million in Q2 FY19 and Rs. 393 million in Q1
FY 20. The year-on-year decline is primarily on account of lower foreign
exchange gain, partly offset by higher profit on sale of investmentsduring the
quarter.
·
Profit
after Tax at Rs. 10.9 billion. The net tax for
the quarter is a benefit of Rs. 3.3 billion;
due to recognition of deferred tax assets of Rs. 5.2
billion, primarily related to the MAT credit.
·
Diluted
earnings per share is at Rs. 65.8.
·
Capital
expenditure is at Rs. 1.1 billion.
Earnings Call Details (06:30 pm IST, 09:00 am EDT, November 1,
2019)
The Company will host an earnings call to discuss the performance
and answer any questions from participants.
Audio
conference Participants can dial-in on the numbers below:
Universal
Access Number: +91 22 6280 1219
Secondary
number: +91 22 7115 8120
Local Access number:
+91 70456 71221
(Available all over India)
International
Toll Free Number USA 18667462133
UK 08081011573
Singapore
8001012045
Hong
Kong 800964448
Playback
of call: +91 22 7194 5757, +91 22 6663 5757
Conference
ID: 31923
Transcript of the event will be available at www.drreddys.com. Playback will be available after the earnings call, till
November 8, 2019.
No comments:
Post a Comment