Dr Reddy s Laboratories Ltd. Q2 FY06 Financial Performance Review

Transcription

1 Dr Reddy s Labratries Ltd. NYSE:RDY Financial Perfrmance Review Table f Cntents USGAAP Financial Snapsht 02 Revenue Mix 03 Active Pharmaceutical Ingredients 04 Generic Finished Dsages 04 Branded Finished Dsages 05 Other Businesses 07 Incme Statement Highlights 07

2 All dllar figures based n cnvenience translatin rate f 1USD = Rs EXTRACT FROM THE UNAUDITED INCOME STATEMENT Particulars () (Rs.) % () (Rs.) % Grwth % Prduct Revenues 131 5, , License fees Ttal Revenues 132 5, , Cst f revenues 64 2, , Grss prfit 68 2, , Selling, General & Administrative Expenses 40 1, , R&D Expenses (1) (29) Amrtizatin Expenses (13) Operating incme befre frex lss/(gain) Frex Lss/ (Gain) (73) Operating incme/(lss) Equity in lss f affiliates 0 (16) (0) 0 (15) (0) 2 Other (expenses)/incme net Incme befre incme taxes and minrity interest Incme tax benefit/(expense) (2) (85) (2) (147) Minrity interest (71) Net incme DEPS Exchange rate Key Balance Sheet Items Sep 05 Jun 05 Cash and cash equivalents Brrwings frm banks , , , ,918 Investment securities ,176 Accunts receivable (net) 99 4, ,933 Inventries 92 4, ,670 Prperty, plant and equipment (net) 161 7, ,028 (1) Reductin f Rs 155 millin under the Generics R&D partnership deal with ICICI Venture

3 Revenue Mix by Segment as a % as a % Grwth % APIs 48 2, , India Internatinal 35 1, , Branded Finished Dsages 59 2, , India 34 1, , Internatinal 24 1, Generics Finished Dsages , (26) Critical care & Bitechnlgy Custm pharmaceutical services Ttal 132 5, , Revenue Mix by Gegraphy as a % as a % Grwth % India 50 2, , Nrth America , (32) Russia Eurpe ROW 27 1, TOTAL 132 5, , Business Highlights Revenues at a recrd Rs 5.8 billin as against Rs 5.4 billin in. YY grwth f 7% driven by increase in revenues frm all business excluding Nrth America Generics. Revenues frm Eurpe generics finished dsages segment at Rs 473 millin as against Rs 324 millin in, YY grwth f 46%. This grwth was driven by higher revenues frm mperazle and amldipine maleate. During the quarter, the cmpany launched terbinafine, which cntributed revenues f Rs 65 millin Revenues frm internatinal markets in API segment at Rs 1,552 millin as against Rs 1,268 millin in. YY grwth f 22%. This grwth was driven by higher sales f sertraline and terbinafine in key markets. Cmbined revenues f these tw prducts at Rs 405 millin as against Rs 60 millin in.

4 Revenues in India branded finished dsages segment increase by 12% t Rs 1.5 billin as against Rs 1.3 billin. This grwth was primarily driven by perfrmance f key brands cmpared t. Revenues in internatinal branded finished dsages segment at Rs 1.1 billin as against Rs 1.0 billin, YY grwth f 10%. This grwth was primarily driven by grwth in Russia and ther CIS cuntries. Cmbined revenues at Rs 846 millin as against Rs 732 millin in. Revenues in Emerging Business at Rs 203 millin as against Rs 130 millin in. YY grwth f 56%. This grwth was driven by grwth in all key markets. Revenues in Custm Pharmaceutical Services (CPS) business increase t Rs 121 millin as against Rs 98 millin in. YY grwth f 24%. Active Pharmaceutical Ingredients (APIs) Revenues increase by 17% t Rs 2,130 millin as against Rs 1,821 millin in. Revenues in India increase by 5% t Rs 578 millin as against Rs 553 millin in. Revenues utside India increase by 22% t Rs 1.6 billin. Cntributes 73% t verall segment revenues as against 70% in. Sales frm Eurpe increase by 55% t Rs 338 millin. This grwth was primarily driven by launch f terbinafine cntributing t sales f Rs 65 millin. Sales frm Nrth America decline by 6% t Rs 490 millin frm Rs 523 millin in Q2 FY05. This decrease was n accunt f decline in sales f key prducts ffset by higher sales f sertraline. Sales frm ther internatinal markets (excluding Nrth America and Eurpe) increase by 37% t Rs 724 millin. This increase was driven by higher sales f sertraline and terbinafine partially ffset by decrease in sales f amldipine maleate. The Cmpany filed 1 US DMF during the quarter taking the ttal filings t 78. In additin t this, the Cmpany filed 2 Eurpe DMF s and 4 Canada PMF s API - Gegraphic Mix as a % as a % Grwth % Nrth America (6) India Eurpe ROW TOTAL 48 2, , Generic Finished Dsages Revenues in this segment at Rs 773 millin as against Rs 1,043 millin in. Eurpe cntributed 61% t the ttal revenues and Nrth America cntributed the balance 39%.

5 Revenues in Eurpe increase by 46% t Rs 473 millin as against Rs 324 millin in. The grwth was primarily driven by higher price realizatins fr meprazle and amldipine maleate as well as launch f terbinafine. Cmbined revenues frm meprazle and amldipine maleate at Rs 295 millin as against Rs 148 millin in. Launch sales f terbinafine at Rs 65 millin. Revenues in Nrth America at Rs 299 millin as against Rs 715 millin in. On accunt f the intense cmpetitin, cmbined revenues frm fluxetine capsules and tizanidine tablets declined t Rs 93 millin frm Rs 436 millin in. Prducts launched after September 2004 cntributed revenues f Rs 34 millin. During the quarter, the Cmpany filed 5 ANDAs. The Cmpany als received apprval fr tw ANDAs during the quarter. This takes the ttal ANDAs pending at the USFDA t 50. Branded Finished Dsages - Internatinal Revenues at Rs 1.1 billin, an increase f 10% ver. This increase was primarily driven by grwth in Russia & CIS markets. Revenues in ther CIS markets increase by 39% t Rs 203 millin as against Rs 146 millin in. This grwth was primarily driven by Ukraine and Kazakhstan. Revenues in Russia increase by 10% t Rs 644 millin as against Rs 587 millin in. This grwth was driven by the perfrmance f key brands f Nise, Ketrl and Omez. Revenues in Central Eastern Eurpe increase by 19% t Rs 51 millin as against Rs 43 millin in. This increase was mainly n accunt f grwth in Rmania partially ffset by decline in revenues frm Albania. Revenues in ther internatinal markets decrease by 12% t Rs 171 millin as against Rs 195 millin in. This was primarily n accunt f decrease in sales frm Venezuela and United Arab Emirates. Gegraphic Mix Cuntry as a % as a % Grwth % Russia CIS Central Eastern Eurpe ROW (12) Ttal 24 1, Branded Finished Dsages- India Revenues at Rs 1.5 billin, an increase f 12% ver.!

6 This grwth was led by the perfrmance f key brands f Staml Beta, Atcr and Raz as well as revenues frm new prducts launched during the quarter. During the quarter, the Cmpany launched eight new prducts cntributing revenues f Rs 12 millin. Branded Finished Dsages India - Revenue by Therapies Therapeutic Segment USD Mn Rs Mn as a % USD Mn Rs Mn as a % Grwth% Gastr Intestinal Cardivascular Pain (6) Paedia Diabetic Care Anti Infectives Neutraceuticals Dermatlgy Dental Urlgy Respiratry Wmen's Health Care Surgery Ttal , , Branded Finished Dsages India - Revenue by Key brands Brand Q2FY05 USD Mn Rs Mn as a % USD Mn Rs Mn as a % Grwth% Nise Omez Staml Staml Beta Enam Atcr Raz Clamp Reclimet Mintp (1) Others Ttal , ,

7 Other Businesses Revenues frm Custm Pharmaceutical Services business increase by 24% t Rs 121 millin frm Rs 98 millin in. Revenues in the Onclgy segment increase by 56% t Rs 203 millin. Incme Statement Highlights Grss prfit margins fr at 52% are cmparable with the grss prfit margins in Q1 FY06. Hwever, cmpared t, grss prfit margins n ttal revenues at 52% as against 55% in. This decline in grss margins is n accunt f decrease in cntributin f revenues frm Nrth America Generics t the ttal revenues. Investments in R&D at 8% f ttal revenues as against 12% in. R&D investments fr Q2 FY06 decrease by 29% t Rs 444 millin frm Rs 627 millin in. During the quarter, the Cmpany recgnized Rs 155 millin as incme under the R&D partnership deal with ICICI Venture. Excluding this benefit, R&D investments decreased by Rs 28 millin. This decrease is n accunt f lwer bi-study expenses in Generics. Selling, General & Administratin (SG&A) expenses increased by 2% t Rs 1,768 millin. As a % t revenues, SG&A expenses are at 30% f ttal revenues as against 32% in. Other incme (net) increased t Rs 169 millin frm Rs 137 millin in. This includes net interest incme f Rs 140 millin. Depreciatin fr the quarter was at Rs 279 millin as against Rs 238 millin fr. Net incme at Rs 890 millin (15% f ttal revenues) as against Rs 517 millin (10% f ttal revenues) in. This translates t a diluted EPS f Rs as against Rs 6.75 in Q2 FY05. Fr further queries, please cntact the IR desk at: Nikhil Shah Mail: nikhilshah@drreddys.cm Ph: "