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7/21/2019 Press Presentation q2 Fy16 Final
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Press Meet
Q2 FY16
Oct 29, 2015
Dr. Reddy’s Laboratories Limited
7/21/2019 Press Presentation q2 Fy16 Final
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Q2 FY16 Press meet
Safe Harbor Statement
2
This presentation contains forward-looking statements and information that involve risks, uncertainties and assumptions. Forward-
looking statements are all statements that concern plans, objectives, goals, strategies, future events or performance and underlying
assumptions and other statements that are other than statements of historical fact, including, but not limited to, those that are identified
by the use of words such as “anticipates”, “believes”, “estimates”, “expects”, “intends”, “plans”, “predicts”, “projects” and similar
expressions. Risks and uncertainties that could affect us include, without limitation:
• General economic and business conditions in India and other key global markets in which we operate;
• The ability to successfully implement our strategy, our research and development efforts, growth & expansion plans and
technological changes;
• Changes in the value of the Rupee and other currency changes;
• Changes in the Indian and international interest rates;
• Allocations of funds by the Governments in our key global markets;
• Changes in laws and regulations that apply to our customers, suppliers, and the pharmaceutical industry;
• Increasing competition in and the conditions of our customers, suppliers and the pharmaceutical industry; and
• Changes in political conditions in India and in our key global markets.
Should one or more of such risks and uncertainties materialize, or should any underlying assumption prove incorrect, actual outcomes
may vary materially from those indicated in the applicable forward-looking statements.
For more detailed information on the risks and uncertainties associated with the Company’s business activities, please see the
Company’s Form 20-F for the fiscal year ended March 31, 2015, and Form 6-K for the quarter ended June 30, 2015 and its other filings
with the Securities and Exchange Commission. Any forward-looking statement or information contained in this presentation speaks only
as of the date of the statement. We are not required to update any such statement or information to either reflect events or
circumstances that occur after the date the statement or information is made or to account for unanticipated events
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Q2 FY16 Press meet 33
Business Highlights
Strong base business• US Generics: Sustained performance in Injectables portfolio, Valganciclovir and
Habitrol®.• India formulations: Continued momentum. Sales of newly acquired portfolio from
UCB in line with expectations.
• Europe: New launches driving profitable growth.• EM performance impacted by macro-economic uncertainties. Improvement in Russia
performance on a sequential basis.
Cost control across COGS and SG&A expenses yielding desired results.
Research & Development• Two ANDA filings in the US. Cumulatively 76 ANDAs are pending approval of
which 18 are expected to be First-to-File.
Highest ever sales and EBITDA performance despite headwinds across businesses
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Q2 FY16 Press meet
Financial highlights
3,588
Revenues (₹Cr)
3,989
58.5%
Gross profit (%)
61.3%
% of revenues
11%
411
R&D (₹Cr)
447
872
EBITDA (₹Cr)
1,139
9% 31%
Q2 FY16Q2 FY15
Gr%
Gr% Gr%
11.2%
11.5%
28.6%
24.3% % of revenues% of revenues
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Global generics: Q2 FY16 Revenues of ₹3,277 Cr (YoY 15% Gr)
NAG: ₹1,856 Cr YoY Growth: 32%
Europe: ₹212 Cr YoY Growth: 65%
Emerging markets: ₹662 Cr YoY decline: 22%
India: ₹546 Cr YoY Growth: 14%
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Global generics: US
Revenues (₹Cr) Market share
ANDA Pipeline
230 cumulative ANDAs
76 pendingapprovals
50 Para IVfilings
18 First to files
32%
1,403
1,856
Q2 FY15 Q2 FY16
Product May-15 Aug-15Decitabine 82% 72%
Azacitidine 52% 51%
Metoprolol 19% 27%
Divalproex ER 18% 21%
Zoledronic Acid (Reclast) 65% 51%
Fondaparinux 54% 51%
Omeprazole DR 17% 16%
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413
293
81
101
355
267
849
662
Q2 FY15 Q2 FY16
Russia CISR RoW
7
Global generics: Emerging markets
Revenues (₹Cr) Russia
RoW
Registered growth of 11% in constant currencyterms.
Focus on mega brands and portfolioaugmentation
OTC revenues at 40% of total revenues
Venezuela: Committed to the market. Cautiousstand in view of lack of funds repatriation
-22%
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Global generics: India
Revenues (₹Cr) India
Key product launches
2 new brands launched
Select portfolio of products acquired from UCBfully integrated into our supply chain
Adjusted for some of the despatches which gotspilled over to October, growth is quite strongand in line with the trend of recent quarters.
14%480
546
Q2 FY15 Q2 FY16
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Pharmaceutical services and active ingredients
Revenues (₹Cr) PSAI
DMF filings
10 DMF filings during the quarter
Stable performance during the quarter withimproved margins sequentially
Focus on healthy orderbook and pipeline
Region Filings
US 222
Canada 79
Europe 202
RoW 252
Cumulative 755
-7%
639592
Q2 FY15 Q2 FY16
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Capex, R&D and Free cash flows
Capex (₹Cr) R&D (₹Cr)
Free cash flows (₹Cr) Net debt/Equity
FCF as above is before acquisition related pay-outs
589
877
1,468
569
754
FY13 FY14 FY15 Q1 FY16 Q2 FY 16
667
1,008 934
257 297
FY13 FY14 FY15 Q1 FY16 Q2 FY 16
767
1,240
1,745
439 447
FY13 FY14 FY15 Q1 FY16 Q2 FY 16
0.12
0.1
0.030.02
Mar - 14 Sep - 14 Mar - 15 Sep - 15
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Key Priorities
Execute on the growth agenda through organic and in-organic means
Enhancement in quality management systems & infrastructure in the evolving
regulatory environment
Achieve the targeted development milestones for complex generics & differentiated
products pipeline
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Q A SESSION
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Thank You
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Q2 FY16 Press meet 1
Abridged P&L – Q2 FY16
Particulars (₹Cr) Q2 FY16 Q2 FY15 Growth%
Revenues 3,989 3,588 11%
Gross Profit 2,447 2,099 17%
% to revenues 61.3% 58.5%
SG&A 1,106 1,067 4%
% to revenues 27.7% 29.7%
R&D 447 411 9%
% to revenues 11.2% 11.5%
EBITDA 1,139 872 31%
% to revenues 28.6% 24.3%
PAT 722 574 26%
% to revenues 18.1% 16.0%
l h b
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Q2 FY16 Press meet 1
Key Balance sheet items – September 2015
Particulars (₹Cr) Sep-15 Jun-15
Cash, cash equivalents and other investments 3,405 3,512
Trade receivables 4,284 4,203
Inventories 2,715 2,615
Property, plant and equipment 5,105 4,939
Goodwill and Other Intangible assets 2,415 2,411
Loans & borrowings (current & non-current) 3,707 4,140
Trade payables 1,277 1,145
Equity 12,150 11,888
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Q2 FY16 Press meet
Registered Office: Dr. Reddy’s Laboratories Ltd. 8-2-337 | Road No. 3, Banjara Hi lls, Hyderabad - 500034, Telengana, India.
Tel: 91 40 4900 2900 | Fax: 91 40 4900 2999 | Email: mail@drreddys.com | Web: www.drreddys.com
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