Dr. Reddy’s Q2 & H1FY25 Financial Results

Business Wire11-05 22:59

HYDERABAD, India, November 05, 2024--(BUSINESS WIRE)--Dr. Reddy’s Laboratories Ltd. (BSE: 500124 | NSE: DRREDDY | NYSE: RDY | NSEIFSC: DRREDDY) today announced its consolidated financial results for ...

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(BSE: 500124 | NSE: DRREDDY | NYSE: RDY | NSEIFSC: DRREDDY) today announced its consolidated financial results for ...</p>\n\n<a href=\"https://finance.yahoo.com/news/dr-reddy-q2-h1fy25-financial-145900785.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Dr. Reddy’s Q2 & H1FY25 Financial Results</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nDr. Reddy’s Q2 & H1FY25 Financial Results\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-05 22:59 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/dr-reddy-q2-h1fy25-financial-145900785.html><strong>Business Wire</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>HYDERABAD, India, November 05, 2024--(BUSINESS WIRE)--Dr. Reddy’s Laboratories Ltd. (BSE: 500124 | NSE: DRREDDY | NYSE: RDY | NSEIFSC: DRREDDY) today announced its consolidated financial results for ...</p>\n\n<a href=\"https://finance.yahoo.com/news/dr-reddy-q2-h1fy25-financial-145900785.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4523","symbol_name":"印度概念","start_time":0,"source_url":"https://finance.yahoo.com/news/dr-reddy-q2-h1fy25-financial-145900785.html","article_id":"2481681603","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/Ix8Zr8ZfeLo5Ej6zhcSkoQ--~B/aD0yNTA7dz04MTI7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/business-wire.com/4bc5c7c961e47663c27475bffaca89d1"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2481681603","pubTimestamp":1730818740,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"HYDERABAD, India, November 05, 2024----Dr. Reddy’s Laboratories Ltd.  today announced its consolidated financial results for the quarter and half year ended September 30, 2024. The information mentioned in this release is based on consolidated financial statements under International Financial Reporting Standards .Commenting on the results, Co-Chairman & MD, G V Prasad said:\"We delivered another good quarter and maintained the growth momentum across businesses. We made progress on our future growth drivers, operationalized our venture with Nestlé and completed the acquisition of Nicotinell and related brands. We will continue to drive efficiency, strengthen our core businesses, and positively impact patient lives through science and innovation.\". All US dollar amounts based on convenience translation rate of 1 USD = 83.76","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4523":"印度概念","RDY":"如瑞迪博士","BK4007":"制药","BK4532":"文艺复兴科技持仓","LU0348744763.USD":"ALLIANZ ASIA PACIFIC INCOME \"A\" (USD) INC","PAI":"Western Asset Income Fund","NCI":"思宏国际","BK4202":"服装、服饰与奢侈品","BK4557":"大麻股"},"translate_title":"Dr.Reddy 25财年第二季度和上半年财务业绩","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"NCI":1,"PAI":1,"RDY":0.9},"content_text":"HYDERABAD, India, November 05, 2024--(BUSINESS WIRE)--Dr. Reddy’s Laboratories Ltd. (BSE: 500124 | NSE: DRREDDY | NYSE: RDY | NSEIFSC: DRREDDY) today announced its consolidated financial results for the quarter and half year ended September 30, 2024. The information mentioned in this release is based on consolidated financial statements under International Financial Reporting Standards (IFRS).\n\n\n\n\n\nQ2FY25\n\n\nH1FY25\n\n\n\n\n\n\n\n \n\n\nRevenues\n\n₹ 80,162 Mn[Up: 17% YoY; 4% QoQ]\n\n\n₹ 156,889 Mn[Up: 15% YoY]\n\n\n\n\n\n\n\n \n\n\nGross Margin\n\n59.6%[Q2FY24: 58.7%; Q1FY25: 60.4%]\n\n\n60.0%[H1FY24: 58.7%]\n\n\n\n\n\n\n\n \n\n\nSG&A Expenses\n\n₹ 23,007 Mn[Up: 22% YoY; 1% QoQ]\n\n\n₹ 45,698 Mn[Up: 25% YoY]\n\n\n\n\n\n\n\n \n\n\nR&D Expenses\n\n₹ 7,271 Mn[9.1% of Revenues]\n\n\n₹ 13,464 Mn[8.6% of Revenues]\n\n\n\n\n\n\n\n \n\n\nEBITDA\n\n₹ 22,803 Mn[28.4% of Revenues]\n\n\n₹ 44,402 Mn[28.3% of Revenues]\n\n\n\n\n\n\n\n \n\n\nProfit before Tax\n\n₹ 19,167 Mn[Flat YoY; Up: 2% QoQ]\n\n\n₹ 37,988 Mn[Up: 1% YoY]\n\n\n\n\n\n\n\n \n\n\nProfit after Taxbefore Non-Controlling Interest\n\n₹ 13,415 Mn[Down: 9% YoY; 4% QoQ]\n\n\n₹ 27,335 Mn[Down: 5% YoY]\n\n\n\n\n\n\n\n \n\n\nProfit after Taxattributable to Equity Holders\n\n₹ 12,553 Mn[Down: 15% YoY; 10% QoQ]\n\n\n₹ 26,473 Mn[Down: 8% YoY]\n\n\n\n\n\n\n\n \n\n\n\nCommenting on the results, Co-Chairman & MD, G V Prasad said:\"We delivered another good quarter and maintained the growth momentum across businesses. We made progress on our future growth drivers, operationalized our venture with Nestlé and completed the acquisition of Nicotinell® and related brands. We will continue to drive efficiency, strengthen our core businesses, and positively impact patient lives through science and innovation.\"\n\n\n\nAll amounts in millions, except EPS\nAll US dollar amounts based on convenience translation rate of 1 USD = ₹83.76\n\n\n\nDr. Reddy’s Laboratories Limited & Subsidiaries\nRevenue Mix by Segment for the quarter\n\n\n\nParticulars\nQ2FY25\nQ2FY24\nYoY Gr %\nQ1FY25\nQoQ Gr%\n\n\n(₹)\n(₹)\n(₹)\n\n\nGlobal Generics\n71,576\n61,084\n17\n68,858\n4\n\n\nNorth America\n37,281\n31,775\n17\n38,462\n(3)\n\n\nEurope\n5,770\n5,286\n9\n5,265\n10\n\n\nIndia\n13,971\n11,860\n18\n13,252\n5\n\n\nEmerging Markets\n14,554\n12,163\n20\n11,878\n23\n\n\nPharmaceutical Services and Active Ingredients (PSAI)\n8,407\n7,034\n20\n7,657\n10\n\n\nOthers\n179\n684\n(74)\n212\n(16)\n\n\nTotal\n80,162\n68,802\n17\n76,727\n4\n\n\n\n\n\n\n\n \n\n\n\nRevenue Mix by Segment for the half year\n\n\n\nParticulars\nH1FY25\nH1FY24\nYoY Gr%\n\n\n(₹)\n(₹)\n\n\nGlobal Generics\n140,434\n121,167\n16\n\n\nNorth America\n75,743\n63,776\n19\n\n\nEurope\n11,035\n10,333\n7\n\n\nIndia\n27,223\n23,342\n17\n\n\nEmerging Markets\n26,433\n23,716\n11\n\n\nPSAI\n16,064\n13,743\n17\n\n\nOthers\n391\n1,276\n(69)\n\n\nTotal\n156,889\n136,186\n15\n\n\n\n\n\n \n\n\n\nConsolidated Income Statement for the quarter\n\n\n\nParticulars\nQ2FY25\nQ2FY24\nYoY Gr %\nQ1FY25\nQoQ Gr%\n\n\n($)\n(₹)\n($)\n(₹)\n($)\n(₹)\n\n\nRevenues\n957\n80,162\n821\n68,802\n17\n916\n76,727\n4\n\n\nCost of Revenues\n387\n32,393\n339\n28,434\n14\n363\n30,383\n7\n\n\nGross Profit\n570\n47,769\n482\n40,368\n18\n553\n46,344\n3\n\n\n% of Revenues\n\n59.6%\n\n58.7%\n\n\n60.4%\n\n\n\nSelling, General & Administrative Expenses\n275\n23,007\n224\n18,795\n22\n271\n22,691\n1\n\n\n% of Revenues\n\n28.7%\n\n27.3%\n\n\n29.6%\n\n\n\nResearch & Development Expenses\n87\n7,271\n65\n5,447\n33\n74\n6,193\n17\n\n\n% of Revenues\n\n9.1%\n\n7.9%\n\n\n8.1%\n\n\n\nImpairment of Non-Current Assets, net\n11\n924\n1\n55\n1580\n0\n5\n\n\n\nOther (Income)/Expense, net\n(12)\n(984)\n(21)\n(1,796)\n(45)\n(6)\n(470)\n109\n\n\nResults from Operating Activities\n210\n17,551\n213\n17,867\n(2)\n214\n17,925\n(2)\n\n\nFinance (Income)/Expense, net\n(19)\n(1,555)\n(15)\n(1,225)\n27\n(10)\n(837)\n86\n\n\nShare of Profit of Equity Accounted Investees, net of tax\n(1)\n(61)\n(1)\n(42)\n45\n(1)\n(59)\n3\n\n\nProfit before Income Tax\n229\n19,167\n228\n19,134\n0\n225\n18,821\n2\n\n\n% of Revenues\n\n23.9%\n\n27.8%\n\n\n24.5%\n\n\n\nIncome Tax Expense\n69\n5,752\n52\n4,334\n33\n59\n4,901\n17\n\n\nProfit for the Period\n160\n13,415\n177\n14,800\n(9)\n166\n13,920\n(4)\n\n\n% of Revenues\n\n16.7%\n\n21.5%\n\n\n18.1%\n\n\n\nAttributable to Equity holders of the parent company\n150\n12,553\n177\n14,800\n(15)\n166\n13,920\n(10)\n\n\nAttributable to Non-controlling interests\n10\n862\n-\n-\n-\n-\n-\n-\n\n\nDiluted Earnings per Share (EPS)^\n0.18\n15.04\n0.21\n17.76\n(15)\n0.20\n16.69\n(9)\n\n\n^Historical numbers re-casted basis the increased number of shares post share split\n\n\n\n\n\n\nEBITDA Computation for the quarter\n\n\n\nParticulars\nQ2FY25\nQ2FY24\nQ1FY25\n\n\n($)\n(₹)\n($)\n(₹)\n($)\n(₹)\n\n\nProfit before Income Tax\n229\n19,167\n228\n19,134\n225\n18,821\n\n\nInterest (Income) / Expense, net*\n(15)\n(1,262)\n(14)\n(1,166)\n(12)\n(1,037)\n\n\nDepreciation\n31\n2,629\n29\n2,437\n30\n2,508\n\n\nAmortization\n16\n1,346\n16\n1,353\n16\n1,302\n\n\nImpairment\n11\n924\n1\n55\n0\n5\n\n\nEBITDA\n272\n22,803\n260\n21,813\n258\n21,599\n\n\n% of Revenues\n\n28.4%\n\n31.7%\n\n28.2%\n\n\n\n\n\n \n\n\n*Includes income from Investment\n\n\n\n\n\n\nConsolidated Income Statement for the half year\n\n\n\nParticulars\nH1FY25\nH1FY24\nYoY Gr %\n\n\n($)\n(₹)\n($)\n(₹)\n\n\nRevenues\n1,873\n156,889\n1,626\n136,186\n15\n\n\nCost of Revenues\n749\n62,776\n672\n56,265\n12\n\n\nGross Profit\n1,124\n94,113\n954\n79,921\n18\n\n\n% of Revenues\n\n60.0%\n\n58.7%\n\n\n\nSelling, General & Administrative Expenses\n546\n45,698\n436\n36,497\n25\n\n\n% of Revenues\n\n29.1%\n\n26.8%\n\n\n\nResearch & Development Expenses\n161\n13,464\n125\n10,431\n29\n\n\n% of Revenues\n\n8.6%\n\n7.7%\n\n\n\nImpairment of Non-Current Assets, net\n11\n929\n1\n66\n1308\n\n\nOther (Income)/Expense, net\n(17)\n(1,454)\n(31)\n(2,576)\n(44)\n\n\nResults from Operating Activities\n424\n35,476\n424\n35,503\n(0)\n\n\nFinance (Income)/Expense, net\n(29)\n(2,392)\n(24)\n(2,009)\n19\n\n\nShare of Profit of Equity Accounted Investees, net of tax\n(1)\n(120)\n(1)\n(85)\n41\n\n\nProfit before Income Tax\n454\n37,988\n449\n37,597\n1\n\n\n% of Revenues\n\n24.2%\n\n27.6%\n\n\n\nIncome Tax Expense\n127\n10,653\n105\n8,772\n21\n\n\nProfit for the Period\n326\n27,335\n344\n28,825\n(5)\n\n\n% of Revenues\n\n17.4%\n\n21.2%\n\n\n\nAttributable to Equity holders of the parent company\n316\n26,473\n344\n28,825\n(8)\n\n\nAttributable to Non-controlling interests\n10\n862\n-\n-\n-\n\n\nDiluted Earnings per Share (EPS)^\n0.39\n31.73\n0.41\n34.58\n(8)\n\n\n^Historical numbers re-casted basis the increased number of shares post share split\n\n\n\n\n\n\nEBITDA Computation for the half year\n\n\n\nParticulars\nH1FY25\nH1FY24\n\n\n($)\n(₹)\n($)\n(₹)\n\n\nProfit before Income Tax\n454\n37,988\n449\n37,597\n\n\nInterest (Income) / Expense, net*\n(27)\n(2,300)\n(22)\n(1,851)\n\n\nDepreciation\n61\n5,137\n56\n4,718\n\n\nAmortization\n32\n2,648\n32\n2,656\n\n\nImpairment\n11\n929\n1\n66\n\n\nEBITDA\n530\n44,402\n516\n43,186\n\n\n% of Revenues\n\n28.3%\n\n31.7%\n\n\n\n\n\n\n \n\n\n\nKey Balance Sheet Items\n\n\n\nParticulars\nAs on 30th Sep 2024\nAs on 30th Jun 2024\nAs on 30th Sep 2023\n\n\n($)\n(₹)\n($)\n(₹)\n($)\n(₹)\n\n\nCash and Cash Equivalents and Other Investments\n767\n64,274\n1,141\n95,599\n833\n69,784\n\n\nTrade Receivables\n1,008\n84,398\n968\n81,088\n832\n69,722\n\n\nInventories\n860\n72,039\n819\n68,568\n676\n56,592\n\n\nProperty, Plant, and Equipment\n1,035\n86,693\n959\n80,343\n841\n70,478\n\n\nGoodwill and Other Intangible Assets\n1,240\n103,892\n494\n41,374\n493\n41,278\n\n\nLoans and Borrowings (Current & Non-Current)\n580\n48,540\n366\n30,675\n158\n13,230\n\n\nTrade Payables\n427\n35,776\n407\n34,109\n364\n30,485\n\n\nEquity\n3,692\n309,283\n3,518\n294,627\n3,022\n253,086\n\n\n\nKey Business Highlights [for Q2FY25]\n\nCompleted acquisition of the Nicotine Replacement Therapy (‘NRT’) portfolio outside of the United States and paid upfront cash consideration of GBP 458 million.\nOperationalized, Dr. Reddy’s and Nestlé Health Science Limited, in August 2024 to undertake the business of nutraceutical products and supplements in India and Nepal. 49% of the shares in the subsidiary transferred to Nestlé India.\nSecured Marketing Authorization from European Commission for our rituximab biosimilar, following a positive opinion from the CHMP of the European Medicines Agency.\nReceived approval from the USFDA for Investigational New Drug (IND) application for AUR-112, a highly differentiated potent and selective inhibitor of MALT1, being developed for treatment of lymphoid malignancies.\nEntered into a non-exclusive patent licensing agreement with Takeda to commercialise Vonoprazan, a novel gastrointestinal drug, in India.\n\nESG & other Updates [for Q2FY25]\n\nRecognised amongst ‘Top 15’ India's Most Sustainable Companies, 2024 by Businessworld India\nReceived ‘ESG Excellence Award’ 2024 in the ‘Large-cap Pharmaceuticals & Healthcare’ category by KPMG India\n‘Voluntary Action Indicated’ (VAI) classification by the United States Food and Drug Administration (USFDA) for two of our formulations manufacturing facilities in Duvvada, Visakhapatnam (FTO 7 and FTO 9), following their routine GMP inspection in May 2024 as well as our API manufacturing facility (CTO-6) in Srikakulam, Andhra Pradesh, following their GMP Inspection in June 2024.\nProduct-specific Pre-Approval Inspection (PAI) completed by the USFDA at our formulations manufacturing facility (FTO SEZ PU1) in Srikakulam, Andhra Pradesh in August 2024 and issued a Form 483 with three observations. The response to the observations were submitted within stipulated timelines.\nRoutine Good Manufacturing Practice (GMP) inspection concluded by the USFDA at our R&D centre in Bachupally, Hyderabad in September, 2024, with zero observations.\nAlteration in share capital of the Company by sub-division/ split of existing equity shares of face value of ₹5 each, fully paid up, including the American Depository Shares, into 5 equity shares of ₹1 each, fully paid-up, approved by the shareholders as well as the Board of Directors of the Company.\n\nRevenue Analysis\n\nQ2FY25 consolidated revenues at ₹80.2 billion, YoY growth of 17% and sequential growth of 4%. YoY growth was primarily driven by growth in global generics revenues. QoQ growth was primarily driven by global generics revenues in Emerging Markets, India, Europe as well as PSAI.H1FY25 consolidated revenues at ₹156.9 billion, YoY growth of 15%. The growth was driven by strong performances in global generics in North America, India, Emerging Markets as well as PSAI.\n\nGlobal Generics (GG)\n\nQ2FY25 revenues at ₹71.6 billion, YoY growth of 17% and QoQ growth of 4%. YoY growth was broad-based, driven by improved sales volumes and new product launches. Sequential growth was primarily driven by Emerging Markets and Europe.H1FY25 revenues at ₹140.4 billion, a YoY growth of 16%. The growth was across all markets, driven by increase in sales volumes.\n\nNorth America\n\nQ2FY25 revenues at ₹37.3 billion, YoY growth of 17% and QoQ decline of 3%. YoY growth was largely on account of increase in sales volumes, partly offset by price erosion. Sequential decline was due to decrease in sales volumes.H1FY25 revenues at ₹75.7 billion, YoY growth of 19%. The growth was largely on account of increase in sales volumes, partially offset by price erosion.\n\n\nDuring the quarter, we launched four new products in the region, all of which were launched in the U.S. A total of 7 products were launched during the half year ended September 30, 2024.\nDuring the quarter, we filed two new Abbreviated New Drug Applications (ANDAs) with the USFDA, taking our year-to-date ANDA filing count to three. As of September 30, 2024, 80 generic filings were pending approval from the USFDA. These comprise of 75 ANDAs and five New Drug Applications (NDAs) filed under Section 505(b)(2) route of the US Federal Food, Drug, and Cosmetic Act. Of the 75 ANDAs, 44 are Paragraph IV applications, and we believe that 22 of these have the ‘First to File’ status.\n\nEurope\n\nQ2FY25 revenues at ₹5.8 billion, YoY growth of 9% and QoQ growth of 10%. YoY growth was primarily on account of leveraging the portfolio to launch new products, partly offset by price erosion. QoQ growth was primarily on account of new product launches.\n\n- Germany at ₹3.2 billion, YoY growth of 21% and QoQ growth of 16%.- UK at ₹1.6 billion, YoY decline of 7% and QoQ growth of 3%.- Rest of Europe at ₹0.9 billion, YoY growth of 4% and QoQ growth of 2%.\nH1FY25 revenues at ₹11.0 billion, YoY growth of 7%. The growth was primarily on account of new product launches and momentum in base business, partly offset by price erosion.\n- Germany at ₹6.0 billion, YoY growth of 17%.- UK at ₹3.2 billion, YoY decline of 7%.- Rest of Europe at ₹1.8 billion, YoY growth of 2%.\n\nDuring the quarter, we launched 8 new products in the region, taking the year-to-date total to 20.\n\nIndia\n\nQ2FY25 revenues at ₹14.0 billion, YoY growth of 18% and QoQ growth of 5%. YoY growth was led by revenues from the vaccine portfolio in-licensed from Sanofi, new products launched as well as price increases. QoQ growth was on account of increase in sales volumes and price, as well as new product launches. As per IQVIA, our IPM rank was maintained at 10 for the quarter.\nH1FY25 revenues at ₹27.2 billion, YoY growth of 17%. YoY growth was largely on account of revenues from in-licensed vaccine portfolio, new products launched as well as higher prices.\nDuring the quarter, we launched three new brands in the country, taking the year-to-date total to 16. We also integrated the nutraceutical products under our subsidiary, ‘Dr. Reddy’s and Nestlé Health Science Limited’ during the quarter.\n\nEmerging Markets\n\nQ2FY25 revenues at ₹14.6 billion, YoY growth of 20% and QoQ growth of 23%. YoY growth is attributable to market share expansion as well as new product launches. QoQ growth was primarily due to higher volumes in the base business.\n\n- Revenues from Russia at ₹6.9 billion, YoY growth of 18% and QoQ growth of 24%.\n- YoY growth was due to higher sales volumes and price and new product launches, partly offset by unfavorable currency exchange rate movements.- QoQ growth was largely on account of market share expansion.\n- Revenues from other Commonwealth of Independent States (CIS) countries and Romania at ₹2.1 billion, YoY decline of 2% and QoQ growth of 12%.\n- YoY decline was primarily on account of decline in base business volumes.- QoQ growth was largely driven by higher base business volumes and increase in prices.\n- Revenues from Rest of World (RoW) territories at ₹5.6 billion, YoY growth of 32% YoY and QoQ growth of 26%.\n- YoY growth was due to momentum in base business and contribution from new products.- QoQ growth was largely driven by increase in base business volumes.\n\nH1FY25 revenues at ₹26.4 billion, YoY growth of 11%. The growth is attributable to market share expansion and new product launches, partly offset by unfavorable forex.\n\n- Revenues from Russia at ₹12.4 billion, YoY growth of 9%. The growth was largely on account of price increases in certain brands and improved volumes, partially offset by unfavorable currency exchange rate movements.- Revenues from other CIS countries and Romania at ₹4.1 billion, YoY decline of 2%. The decline was largely on account of lower sales volumes.- Revenues from RoW territories at ₹10.0 billion, YoY growth of 22%. The growth is largely attributable to higher base business volumes and new product launches.\n\nDuring the quarter, we launched 22 new products across various countries in the region, taking the year-to-date total to 39.\n\nPharmaceutical Services and Active Ingredients (PSAI)\n\nQ2FY25 revenues at ₹8.4 billion, YoY growth of 20% and QoQ growth of 10%. YoY and QoQ growth was mainly driven by momentum in base business volumes, growth in services business and revenues from new products.\nH1FY25 revenues at ₹16.1 billion, with a growth of 17% YoY. The growth was mainly driven by market share expansion, growth in services business and revenues from new products.\nDuring the quarter, we filed 22 Drug Master Files (DMFs) globally, taking the year-to-date count to 36.\n\nIncome Statement Highlights:\nGross Margin\n\nQ2FY25 at 59.6% (GG: 63.1%, PSAI: 30.0%), a YoY increase of 92 basis points (bps) and a QoQ decline of 81 bps. The YoY increase was on account of improvement in product mix and overhead leverage, partly offset by price erosion. On a sequential basis, the decline was primarily on account of change in mix.H1FY25 at 60.0% (GG: 63.9%, PSAI: 26.7%), a YoY increase by 130 bps YoY. The expansion in margin was on account of favourable product mix and productivity cost savings, partially offset by price erosion in select markets.\n\nSelling, General & Administrative (SG&A) Expenses\n\nQ2FY25 at ₹23.0 billion, YoY increase of 22% and QoQ increase of 1%.We incurred one-time acquisition related costs towards NRT portfolio. Excluding the same, SG&A spend was at 28% of sales.H1FY25 at ₹45.7 billion, YoY increase of 25%.The increase is largely on account of higher investments in sales & marketing activities to strengthen our existing brands, new business initiatives, including scaling up ‘Over-the-Counter’ (OTC) and consumer health businesses, as well as higher personnel and freight expenses.\n\nResearch & Development (R&D) Expenses\n\nQ2FY25 at ₹7.3 billion. As % to Revenues – Q2FY25: 9.1% | Q2FY24: 7.9% | Q1FY25: 8.1%.H1FY25 at ₹13.5 billion. As % to Revenues – H1FY25: 8.6% | H1FY24: 7.7%.R&D investments is related to our ongoing development efforts across generics, biosimilars, as well as our novel oncology assets.\n\nOther Operating Income\n\nQ2FY25 at ₹1.0 billion as compared to ₹ 1.8 billion in Q2FY24.H1FY25 at ₹1.5 billion as compared to ₹ 2.6 billion in H1FY24.\n\nNet Finance Income\n\nQ2FY25 at ₹1.6 billion compared to ₹1.2 billion in Q2FY24.H1FY25 at ₹2.4 billion as compared to ₹2.0 billion in H1FY24.\n\nProfit before Tax\n\nQ2FY25 at ₹19.2 billion, flat YoY and a QoQ growth of 2%. As % to Revenues – Q2FY25: 23.9% | Q2FY24: 27.8% | Q1FY25: 24.5%.Excluding the impact of aforesaid mentioned one-time acquisition related cost and impairment charge on non-current assets; underlying profit before tax stood at 25.7% of revenues.H1FY25 at ₹38.0 billion, a YoY increase of 1%. As % to Revenues – H1FY25: 24.2% | H1FY24: 27.6%.\n\nIncome Tax\n\nQ2FY25 at ₹5.8 billion. As % to PBT – Q2FY25: 30% | Q2FY24: 22.7% | Q1FY25: 26%.The higher tax for the quarter is on account of reversal of a Deferred Tax Asset of Rs. 0.48 billion, created in earlier period on land, pursuant to the amendment in the Finance Act 2024, resulting in withdrawal of indexation benefit. Excluding the impact of this one-time reversal, adjusted effective tax rate for the quarter on the underlying PBT is 25.9%.H1FY25: The ETR was 28.0% as compared to 23.3% in H1FY24.\n\nProfit after Tax before Non-Controlling Interests\n\nQ2FY25 at ₹13.4 billion, a YoY decline of 9% and a QoQ decline of 4%. As % to Revenues – Q2FY25: 16.7% | Q2FY24: 21.5% | Q1FY25: 18.1%.Excluding the impact of one-time acquisition related cost, impairment charge on non-current assets, one-time tax expense, underlying profit after tax before non-controlling interests stood at 18.0% of revenues.H1FY25 at ₹27.3 billion, a YoY decline of 5%. As % to Revenues – H1FY25: 17.4% | H1FY24: 21.2%.\n\nNon-Controlling Interests (NCI)\n\nQ2FY25 at ₹0.9 billion. This primarily includes the share in a one-time deferred tax asset recognized in the subsidiary books (Dr. Reddy’s and Nestlé Health Science Limited) on account of transfer of Dr. Reddy’s nutraceuticals business to the subsidiary and consequently allocated to NCI.\n\nProfit attributable to Equity Holders of Parent Company\n\nQ2FY25 at ₹12.6 billion, a YoY decline of 15% and a QoQ decline of 10%. As % to Revenues – Q2FY25: 15.7% | Q2FY24: 21.5% | Q1FY25: 18.1%.Excluding the impact of one-time acquisition related cost, impairment charge on non-current assets, one-time tax expense, underlying profit after tax attributable to equity holders of parent company stood at 19% of revenues.H1FY25 at ₹26.5 billion, a YoY decline of 8%. As % to Revenues – H1FY25: 16.9% | H1FY24: 21.2%.\n\nDiluted Earnings per Share (EPS)\n\nQ2FY25 is ₹15.04. H1FY25 is ₹31.73.The Earnings per share has been arrived at on the increased number of shares pursuant to the stock split of one fully paid-up equity share of Rupees five each into five fully paid-up equity share of Rupee one each.\n\nOther Highlights:\nEarnings before Interest, Tax, Depreciation and Amortization (EBITDA)\n\nQ2FY25 at ₹22.8 billion, YoY growth of 5% and QoQ growth of 6%. As % to Revenues – Q2FY25: 28.4% | Q2FY24: 31.7% | Q1FY25: 28.2%.Excluding the impact of one-time acquisition related cost, EBITDA stood at 29.1% of sales.\n\n\nH1FY25 at ₹44.4 billion, a YoY growth of 3%. As % to Revenues – H1FY25: 28.3% | H1FY24: 31.7%.\n\nOthers:\n\nOperating Working Capital: As on 30th September 2024 at ₹120.7 billion.\n\n\nCapital Expenditure: Q2FY25 at ₹7.4 billion.\n\n\nFree Cash Flow: Q2FY25 at ₹2.0 billion.\n\n\nNet Cash Surplus: As on 30th September 2024 at ₹18.9 billion\n\n\nDebt to Equity: As on 30th September 2024 is (0.06)\n\n\nROCE: Q2FY25 at 28.5% (Annualized)\n\nAbout key metrics and non-GAAP Financial Measures\nThis press release contains non-GAAP financial measures within the meaning of Regulation G and Item 10(e) of Regulation S-K. Such non-GAAP financial measures are measures of our historical performance, financial position or cash flows that are adjusted to exclude or include amounts from the most directly comparable financial measure calculated and presented in accordance with IFRS.\nThe presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with IFRS. Our non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. These measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes.\nWe believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating our business.\nFor more information on our non-GAAP financial measures and a reconciliation of GAAP to non-GAAP measures, please refer to \"Reconciliation of GAAP to Non-GAAP Results\" table in this press release.\nAll amounts in millions, except EPS\nReconciliation of GAAP Measures to Non-GAAP Measures\nOperating Working Capital\n\n\n\nParticulars\nAs on 30th Sep 2024\n\n\n(₹)\n\n\nInventories\n72,039\n\n\nTrade Receivables\n84,398\n\n\nLess:\n\n\n\nTrade Payables\n35,776\n\n\nOperating Working Capital\n120,661\n\n\n\n \n\n\n\nFree Cash Flow\n\n\n\nParticulars\nThree months ended30th Sep 2024\n\n\n(₹)\n\n\nNet cash generated from operating activities\n16,538\n\n\nLess:\n\n\n\nTaxes\n(7,223)\n\n\nInvestments in Property, Plant & Equipment, and Intangibles\n(7,279)\n\n\nFree Cash Flow before Acquisitions\n2,036\n\n\nLess:\n\n\n\nAcquisitions related Pay-out\n(51,442)\n\n\nFree Cash Flow\n(49,406)\n\n\n\n \n\n\n\nNet Cash Surplus and Debt to Equity\n\n\n\nParticulars\nAs on 30th Sep 2024\n\n\n(₹)\n\n\nCash and Cash Equivalents\n11,330\n\n\nInvestments\n52,944\n\n\nShort-term Borrowings\n(40,021)\n\n\nLong-term Borrowings, Non-Current\n(7,361)\n\n\nLess:\n\n\n\nRestricted Cash Balance – Unclaimed Dividend and others\n177\n\n\nLease liabilities (included in Long-term Borrowings, Non-Current)\n(3,561)\n\n\nEquity Investments (Included in Investments)\n1,388\n\n\nNet Cash Surplus\n18,888\n\n\nEquity\n309,283\n\n\nNet Debt/Equity\n(0.06)\n\n\n\n \n\n\n\nComputation of Return on Capital Employed\n\n\n\nParticulars\nAs on 30th Sep 2024\n\n\n(₹)\n\n\nProfit before Tax\n19,167\n\n\nLess:\n\n\n\nInterest and Investment Income (Excluding forex gain/loss)\n1,262\n\n\nEarnings Before Interest and taxes [A]\n17,905\n\n\n\n\n\n\nAverage Capital Employed [B]\n250,862\n\n\n\n\n\n\nAnnualized Return on Capital Employed (A/B) (Ratio)\n28.5%\n\n\n\n \n\n\n\nComputation of Capital Employed:\n\n\n\nParticulars\nAs on\n\n\nSep 30,2024\nMar 31,2024\n\n\nProperty Plant and Equipment\n86,693\n76,886\n\n\nIntangibles\n92,119\n36,951\n\n\nGoodwill\n11,773\n4,253\n\n\nInvestment in Equity Accounted Associates\n4,779\n4,196\n\n\nOther Current Assets\n28,217\n22,560\n\n\nOther Investments\n1,200\n1,059\n\n\nOther Non-Current Assets\n1,510\n1,632\n\n\nInventories\n72,039\n63,552\n\n\nTrade Receivables\n84,398\n80,298\n\n\nDerivative Financial Instruments\n63\n(299)\n\n\nLess:\n\n\n\n\nOther Liabilities\n47,840\n46,866\n\n\nProvisions\n5,260\n5,444\n\n\nTrade payables\n35,776\n30,919\n\n\nOperating Capital Employed\n293,865\n207,859\n\n\nAverage Capital Employed\n250,862\n\n\n\nComputation of EBITDA\nRefer page no. 3 & 4.\nEarnings Call Details\nThe management of the Company will host an Earnings call to discuss the Company’s financial performance and answer any questions from the participants.\nDate: November 5, 2024\nTime: 19:30 pm IST | 09:00 am ET\n\n\n\nConference Joining Information\n\n\n\n\n\n\nOption 1: Pre-register with the below link and join without waiting for the operator\n\n\nhttps://services.choruscall.in/DiamondPassRegistration/register?confirmationNumber=2636091&linkSecurityString=1174e664fe\n\n\n\n\n\n\nOption 2: Join through below Dial-In Numbers\n\n\nUniversal Access Number:\n+91 22 6280 1219+91 22 7115 8120\n\n\n\n \n\n\nInternational Toll-Free Number:\nUSA: 1 866 746 2133UK: 0 808 101 1573Singapore: 800 101 2045Hong Kong: 800 964 448\n\n\n\nNo password/pin number is necessary to dial in to any of the above numbers. The operator will provide instructions on asking questions before and during the call.\nPlay Back: The play back will be available after the earnings call, till November 11th, 2024. For play back dial in phone No: +91 22 7194 5757, and Playback Code is 03706.\nTranscript: Transcript of the Earnings call will be available on the Company’s website: www.drreddys.com\nAbout Dr. Reddy’s: Dr. Reddy’s Laboratories Ltd. (BSE: 500124, NSE: DRREDDY, NYSE: RDY, NSEIFSC: DRREDDY) is a global pharmaceutical company headquartered in Hyderabad, India. Established in 1984, we are committed to providing access to affordable and innovative medicines. Driven by our purpose of ‘Good Health Can’t Wait’, we offer a portfolio of products and services including APIs, generics, branded generics, biosimilars and OTC. Our major therapeutic areas of focus are gastrointestinal, cardiovascular, diabetology, oncology, pain management and dermatology. Our major markets include – USA, India, Russia & CIS countries, China, Brazil, and Europe. As a company with a history of deep science that has led to several industry firsts, we continue to plan and invest in businesses of the future. As an early adopter of sustainability and ESG actions, we released our first Sustainability Report in 2004. Our current ESG goals aim to set the bar high in environmental stewardship; access and affordability for patients; diversity; and governance.\nFor more information, log on to: www.drreddys.com.\nDisclaimer: This press release may include statements of future expectations and other forward-looking statements that are based on the management’s current views and assumptions and involve known or unknown risks and uncertainties that could cause actual results, performance, or events to differ materially from those expressed or implied in such statements. In addition to statements which are forward-looking by reason of context, the words \"may\", \"will\", \"should\", \"expects\", \"plans\", \"intends\", \"anticipates\", \"believes\", \"estimates\", \"predicts\", \"potential\", or \"continue\" and similar expressions identify forward-looking statements. Actual results, performance or events may differ materially from those in such statements due to without limitation, (i) general economic conditions such as performance of financial markets, credit defaults , currency exchange rates , interest rates , persistency levels and frequency / severity of insured loss events (ii) mortality and morbidity levels and trends, (iii) changing levels of competition and general competitive factors, (iv) changes in laws and regulations and in the policies of central banks and/or governments, (v) the impact of acquisitions or reorganization , including related integration issues, and (vi) the susceptibility of our industry and the markets addressed by our, and our customers’, products and services to economic downturns as a result of natural disasters, epidemics, pandemics or other widespread illness, including coronavirus (or COVID-19), and (vii) other risks and uncertainties identified in our public filings with the Securities and Exchange Commission, including those listed under the \"Risk Factors\" and \"Forward-Looking Statements\" sections of our Annual Report on Form 20-F for the year ended March 31, 2024. The company assumes no obligation to update any information contained herein.\" The company assumes no obligation to update any information contained herein.\nView source version on businesswire.com: https://www.businesswire.com/news/home/20241105872905/en/\nContacts\nINVESTOR RELATIONS RICHA PERIWALrichaperiwal@drreddys.com\nAISHWARYA SITHARAMaishwaryasitharam@drreddys.com\nMEDIA RELATIONS USHA IYERushaiyer@drreddys.com","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2481681603"}