|
Q2 FY13 Revenues at Rs. 28.8 billion Q2 FY13 EBITDA at Rs. 7.7 billion *Adjusted Q2 FY13 PAT at Rs. 4.9 billion |
H1 FY13 Revenues at Rs. 54.2 billion H1 FY13 EBITDA at Rs. 12.7 billion **Adjusted H1 FY13 PAT at Rs. 7.8 billion |
Hyderabad, India, October 30 th , 2012: Dr. Reddy’s Laboratories Ltd. (NYSE: RDY) today announced its unaudited consolidated financial results for the quarter ended September 30, 2012 under International Financial Reporting Standards (IFRS).
Key Highlights (Q2 FY13)
- Consolidated revenues for Q2 FY13 at Rs. 28.8 billion, recorded YoY growth of 27%. Consolidated revenues for H1 FY13 at Rs. 54.2 billion, recorded YoY growth of 28%.
- Revenues from the Global Generics segment for Q2 FY13 at Rs. 20.1 billion, recorded YoY growth of 25% primarily driven by North America , India and other emerging markets.
- Revenues from the PSAI segment for Q2 FY13 at Rs. 7.9 billion, recorded YoY growth of 33%.
- EBITDA for Q2 FY13 at Rs. 7.7 billion, 27% of revenues, recorded YoY growth of 47%. EBITDA for H1 FY13 at Rs. 12.7 billion, 23% of revenues, recorded YoY growth of 35%.
- PAT for Q2 FY13 at Rs. 4.1 billion, 14% of revenues, recorded YoY growth of 32%. PAT for H1 FY13 at Rs. 7.4 billion, 14% of revenues, recorded YoY growth of 30%.
- *Adjusted PAT for Q2 FY13 at Rs. 4.9 billion, 17% of revenues, recorded YoY growth of 77%.
- During the quarter, the company launched 18 new generic products, filed 11 new product registrations and filed 10 DMFs globally.
* Adjusted for (a) impairment charges in Q2 FY13 (b) the benefit on reversal of provision for voluntary retirement scheme (‘VRS’)in Q2 FY 12 and (c) tax normalization on account of the annual effective tax rate and the aforementioned adjustments
** Adjusted for (a) impairment charges in Q2 FY13 (b) net charge for voluntary retirement scheme(‘VRS’) and (c) tax normalization on account of the annual effective tax rate and the aforementioned adjustments
All figures in millions, except EPS
All dollar figures based on convenience translation rate of 1USD = Rs. 52.92
Dr. Reddy’s Laboratories Ltd. and Subsidiaries
Unaudited Consolidated Income Statement
|
Particulars |
Q2 FY13 |
Q2 FY12 |
Growth % |
||||
|
($) |
( Rs. ) |
% |
($) |
( Rs. ) |
(%) |
||
|
Revenues |
544 |
28,809 |
100 |
429 |
22,678 |
100 |
27 |
|
Cost of revenues |
255 |
13,504 |
47 |
198 |
10,473 |
46 |
29 |
|
Gross profit |
289 |
15,305 |
53 |
231 |
12,205 |
54 |
25 |
|
Operating Expenses |
|
|
|
|
|
|
|
|
Selling, general & administrative expenses |
151 |
8,013 |
28 |
136 |
7,217 |
32 |
11 |
|
Research and development expenses |
33 |
1,759 |
6 |
28 |
1,459 |
6 |
21 |
|
Impairment loss on goodwill and intangible assets |
13 |
688 |
2 |
|
|
|
|
|
Other operating (income) / expense |
(8) |
(397) |
(1) |
(4) |
(216) |
(1) |
85 |
|
Results from operating activities |
99 |
5,242 |
18 |
71 |
3,745 |
17 |
40 |
|
Net finance (income) / expense |
(7) |
(371) |
(1) |
1 |
50 |
0 |
(849) |
|
Share of (profit) / loss of equity accounted investees |
(1) |
(28) |
(0) |
(0) |
(13) |
(0) |
115 |
|
Profit before income tax (‘PBT’) |
107 |
5,641 |
20 |
70 |
3,708 |
16 |
52 |
|
Income tax expense |
30 |
1,567 |
5 |
12 |
630 |
3 |
148 |
|
Profit for the period |
77 |
4,074 |
14 |
58 |
3,078 |
14 |
32 |
|
Diluted EPS |
0.5 |
23.9 |
|
0.3 |
18.1 |
|
32 |
Profit Computation:
|
EBITDA Computation |
Q2 FY13 |
Q2 FY12 |
||
|
($) |
( Rs. ) |
($) |
( Rs. ) |
|
|
PBT |
107 |
5,641 |
70 |
3,708 |
|
Net Interest Expenses / (Income) |
(1) |
(32) |
4 |
225 |
|
Depreciation |
18 |
943 |
17 |
879 |
|
Amortization |
8 |
433 |
7 |
389 |
|
Impairment |
13 |
688 |
|
|
|
Reported EBITDA |
145 |
7,673 |
98 |
5,201 |
|
Adjustments of exceptional items: |
|
|
|
|
|
Part reversal of provision booked in Q1 FY12 for VRS |
|
|
(2) |
(94) |
|
Adjusted EBITDA |
145 |
7,673 |
97 |
5,107 |
|
PAT Computation |
Q2 FY13 |
Q2 FY12 |
|||
|
($) |
( Rs. ) |
($) |
( Rs. ) |
||
|
PAT |
77 |
4,074 |
58 |
3,078 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
(2) |
(94) |
|
|
13 |
688 |
|
|
|
|
Tax adjustment* |
3 |
175 |
(4) |
(192) |
|
|
Adjusted PAT |
93 |
4,937 |
53 |
2,792 |
|
* Q2 FY13 normalized to the FY13 annual effective tax rate and Q2 FY12 normalized to the FY12 annual effective tax rate and the effect of the aforementioned transactions
SEGMENTAL ANALYSIS
Global Generics
Revenues from Global Generics segment for Q2 FY13 at Rs. 20.1 billion, recorded YoY growth of 25% driven by key markets of North America , India and other emerging markets..
- Revenues from North America for Q2 FY13 at Rs. 9.3 billion, recorded YoY growth of 47%.
- Growth is largely driven by key limited competition products of ziprasidone, tacrolimus, fondaparinux, clopidogrel, ramp-up in antibiotics portfolio and products from Shreveport facility.
- 4 new products were launched during the quarter – atorvastatin, metoprolol, montelukast family and amoxicillin.
- 30 products from the prescription portfolio are ranked among the Top 3 in their respective market shares. (Source: IMS Health Volumes, August 2012)
- During the quarter, 4 ANDAs were filed. Cumulatively, 63 ANDAs are pending for approval with the USFDA of which 33 are Para IVs and 7 have ‘First To File’ status.
- Revenues from Russia and Other CIS markets for Q2 FY13 at Rs. 3.8 billion recorded YoY growth of 14%.
- Revenues from Russia for Q2 FY13 are at Rs. 3.2 billion.
- Revenues from Other CIS markets for Q2 FY13 at Rs. 0.62 billion recorded YoY growth of 31%.
- Revenues from India for Q2 FY13 at Rs. 3.9 billion recorded YoY growth of 12%.
- Growth driven by volume increase across most of key brands.
- Biosimilars portfolio grew YoY by 24% during the quarter.
- 4 new brands were launched during the quarter.
- Revenues from Europe for Q2 FY13 at Rs. 1.8 billion declined YoY by 16%.
- Revenues from Germany for Q2 FY13 at Rs. 1.1 billion declined YoY by 11%.
Pharmaceutical Services and Active Ingredients (PSAI)
- Revenues from PSAI for Q2 FY13 at Rs. 7.9 billion, recorded YoY growth of 33%.
- During the quarter, 10 DMFs were filed globally, including 2 in Europe . The cumulative number of DMF filings as of September 30. 2012 is 552.
Income Statement Highlights:
- Gross profit margin at 53.1% in Q2 FY13 marginally dropped by 0.7% versus Q2 FY12. Gross profit margin for Global Generics and PSAI business segments are at 59.4% and 35.8% respectively.
- Selling, General and Administration (SG&A) expenses including amortization at Rs. 8.0 billion increased YoY by 11%.
- Research & development expenses for Q2 FY13 at Rs. 1.8 billion is at 6% of revenues.
- During the quarter, a non-recurring and non-cash impairment charge of `688 million pertaining to product intangibles in generics portfolio and a goodwill charge wrt Italian operations has been considered.
- Net Finance income is at Rs. 371 million, in Q2 FY13 compared to the net finance cost of `50 million in Q2 FY12. The change is on account of :
- Net incremental forex gain of Rs. 187 million, primarily on account of reversal of the loss on time value of options recorded in Q1 FY13, due to the recent appreciation of the rupee.
- Net interest income of Rs. 33 million in Q2 FY13 compared to net interest expense of Rs. 225 million in Q2 FY12 primarily on account of higher interest income from Fixed Deposit and mutual funds.
- EBITDA for Q2 FY13 is Rs. 7.7 billion, 27% of revenues and recorded YoY growth of 47%. This growth is supported by the increased operating leverage.
- Profit after Tax in Q2 FY13 at Rs. 4.1 billion recorded YoY growth of 32%.
- *Adjusted Profit after tax in Q2 FY13 at Rs 4 .9 billion recorded YoY growth of 77%.
- Diluted earnings per share in Q2 FY 13 are Rs. 23.9.
- Capital expenditure for Q2 FY13 is Rs. 1,8 billion.
* * Adjusted for (a) impairment charges in Q2 FY13 (b) the benefit on reversal of provision for voluntary retirement scheme (‘VRS’)in Q2 FY 12 and (c) tax normalization on account of the annual effective tax rate and the aforementioned adjustments
All dollar figures based on convenience translation rate of 1USD = Rs. 52.92
(in millions) Appendix 1: Key Balance Sheet Items
|
Particulars |
As on 30 th Sep 12 |
As on 30 th June 12 |
||
|
($) |
( Rs. ) |
($) |
( Rs. ) |
|
|
Cash and cash equivalents |
390 |
20,641 |
403 |
21,353 |
|
Trade receivables |
496 |
26,247 |
472 |
24,975 |
|
Inventories |
414 |
21,885 |
389 |
20,580 |
|
Property, plant and equipment |
667 |
35,300 |
653 |
34,550 |
|
Goodwill and other intangible assets |
233 |
12,297 |
257 |
13,597 |
|
Loans and borrowings (current & non-current) |
660 |
34,901 |
670 |
35,430 |
|
Trade payables |
197 |
10,412 |
165 |
8,750 |
|
Equity |
1,197 |
63,354 |
1,127 |
59,664 |
(in millions) Appendix 2: Revenue Mix by Segment
|
|
Q2FY13 |
Q2FY12 |
Growth % |
||||
|
($) |
( Rs. ) |
as a % |
($) |
( Rs. ) |
as a % |
||
|
Global Generics |
380 |
20,103 |
70 |
305 |
16,136 |
71 |
25 |
|
North America |
|
9,270 |
46 |
|
6,287 |
39 |
47 |
|
Europe |
|
1,777 |
9 |
|
2,117 |
13 |
(16) |
|
India |
|
3,879 |
19 |
|
3,459 |
21 |
12 |
|
Russia & Other CIS |
|
3,841 |
19 |
|
3,380 |
21 |
14 |
|
RoW |
|
1,336 |
7 |
|
893 |
6 |
50 |
|
PSAI |
149 |
7,876 |
27 |
112 |
5,933 |
26 |
33 |
|
North America |
|
1,353 |
17 |
|
1,068 |
18 |
27 |
|
Europe |
|
2,906 |
37 |
|
2,303 |
39 |
26 |
|
India |
|
1,148 |
15 |
|
752 |
13 |
53 |
|
RoW |
|
2,469 |
31 |
|
1,810 |
31 |
36 |
|
Proprietary Products and Others |
16 |
830 |
3 |
12 |
610 |
3 |
36 |
|
Total |
544 |
28,809 |
100 |
429 |
22,678 |
100 |
27 |
All figures in millions, except EPS
All dollar figures based on convenience translation rate of 1USD = Rs. 52.92
Appendix 3: Consolidated Income Statement
|
Particulars |
H1 FY13 |
H1 FY12 |
Growth % |
||||
|
($) |
( Rs. ) |
% |
($) |
( Rs. ) |
(%) |
||
|
Revenues |
1,024 |
54,215 |
100 |
802 |
42,461 |
100 |
28 |
|
Cost of revenues |
479 |
25,369 |
47 |
372 |
19,701 |
46 |
29 |
|
Gross profit |
545 |
28,846 |
53 |
430 |
22,760 |
54 |
27 |
|
Operating Expenses |
|
|
|
|
|
|
|
|
Selling, general & administrative expenses |
308 |
16,291 |
30 |
264 |
13,972 |
33 |
17 |
|
Research and development expenses |
63 |
3,322 |
6 |
50 |
2,656 |
6 |
25 |
|
Impairment loss on goodwill and intangible assets |
13 |
688 |
1 |
|
|
|
|
|
Other operating (income) / expense |
(12) |
(615) |
(1) |
(8) |
(402) |
(1) |
54 |
|
Results from operating activities |
173 |
9,160 |
17 |
123 |
6,534 |
15 |
40 |
|
Net finance (income) / expense |
(3) |
(159) |
(0) |
2 |
96 |
0 |
(266) |
|
Share of (profit) / loss of equity accounted investees |
(1) |
(47) |
(0) |
(0) |
(17) |
(0) |
176 |
|
Profit before income tax |
177 |
9,366 |
17 |
122 |
6,455 |
15 |
45 |
|
Income tax expense |
37 |
1,932 |
4 |
14 |
750 |
2 |
157 |
|
Profit for the period |
140 |
7,434 |
14 |
108 |
5,705 |
13 |
30 |
|
Diluted EPS |
0.8 |
43.6 |
|
0.6 |
33.5 |
|
30 |
Appendix 4: Profit Computation
|
EBITDA Computation |
H1 FY13 |
H1 FY12 |
|||
|
($) |
( Rs. ) |
($) |
( Rs. ) |
||
|
PBT |
177 |
9,366 |
122 |
6,455 |
|
|
0 |
12 |
8 |
446 |
|
|
35 |
1,839 |
32 |
1,708 |
|
|
Amortization |
16 |
833 |
15 |
794 |
|
|
Impairment |
13 |
688 |
|
|
|
|
Reported EBITDA |
241 |
12,738 |
178 |
9,403 |
|
|
|
|
|
|
|
|
|
|
1 |
42 |
|
|
241 |
12,738 |
178 |
9,445 |
|
|
PAT Computation |
H1 FY13 |
H1 FY12 |
|||
|
($) |
( Rs. ) |
($) |
( Rs. ) |
||
|
PAT |
140 |
7,434 |
108 |
5,705 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
1 |
42 |
|
|
13 |
688 |
|
|
|
|
Tax adjustment* |
(5) |
(280) |
(14) |
(729) |
|
|
Adjusted PAT |
148 |
7,842 |
95 |
5,018 |
|
* H1 FY13 normalized to the FY13 annual effective tax rate and H1 FY12 normalized to the FY12 annual effective tax rate and the effect of the aforementioned transactions
