Dr. Reddy's Laboratories Ltd. · NSE:DRREDDY

Dr. Reddy's Laboratories — Q1 FY23 Earnings Presentation

12 slides from Dr. Reddy's Laboratories's earnings presentation, Jul 28, 2022

  1. Slide 1: Financial Results Q1 FY23

    Financial Results Q1 FY23 July 28th, 2022 1 | July 28th, 2022 | Q1 FY23 Press Meet | As per consolidated financial statements under IFRS

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement 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

  3. Slide 3: Q1 FY23 - Financial Highlights

    Q1 FY23 - Financial Highlights Rs. Cr A quarter with strong growth in profits Q1 FY23 YoY Gr% QoQ Gr% Revenues 5,215 6% (4)% EBITDA 1,779 75% 37% PBT 1,466 97% 490% PAT 1,188 108% 1,257% 3 | July 28th, 2022 | Q1 FY23 Press Meet | As per consolidated financial statements under IFRS

  4. Slide 4: Focusing on productivity while continuing to invest for growth

    Focusing on productivity while continuing to invest for growth Rs. Cr Gross margin SG&A Expenses R&D Expenses YoY Inc 3% QoQ Dc -1% YoY Dc -5% QoQ Gr 0% 52.2% 52.9% 1,505 1,567 1,549 49.9% 453 433 433 % to 30.6% 28.8% 29.7% % to 9.2% 8.0% 8.3% Sales Sales Q1 Q4 Q1 Q1 Q4 Q1 Q1 Q4 Q1 FY22 FY22 FY23 FY

  5. Slide 5: North America – Strong launch momentum continues

    North America –Strong launch momentum continues | Incremental competition in a few of our key assets Revenues Q1 FY23 Rs. 1,782 cr  Strong launch momentum continues - Launched Six products in US and one YoY Gr QoQ Dc in Canada +2% -11%  Incremental competition seen in few key assets viz. gSuboxone

  6. Slide 6: India – Healthy double digit growth

    India – Healthy double digit growth Revenues  Divested few of non-core brands allowing us to focus on our core brands Q1 FY23 Rs. 1,334 cr  Healthy double digit growth adjusted for divestments in current quarter and YoY Gr QoQ Gr +26% +38% the covid product sales during Q1 FY22  Launched 5 new br

  7. Slide 7: Emerging Markets – Healthy growth adjusted for covid product sales

    Emerging Markets – Healthy growth adjusted for covid product sales in last year Revenues ₹ Cr Q1 FY23 Rs. 903 cr Region Q1 FY23 YoY Gr QoQ Gr Russia 321 -9% -53% YoY Dc QoQ Dc CISR 192 33% -16% -1% -25% RoW 390 -6% 36% EM 903 -1% -25%  Decline due to: - Higher base effect: Covid product sales in Q1

  8. Slide 8: Europe – Double digit growth in constant currency

    Europe – Double digit growth in constant currency Revenues ₹ Cr Q1 FY23 Rs. 414 cr Region Q1 FY23 YoY Gr QoQ Gr Germany 221 -1% -17% YoY Gr QoQ Dc UK/OL 107 -8% 3% 4% -7% France, Italy, Spain & others 86 44% 17% Europe 414 4% -7%  Base business: Good traction in volume, offset by price erosion  Go

  9. Slide 9: PSAI – Business grew adjusted for covid product sales

    PSAI – Business grew adjusted for covid product sales in last year Revenues  Decline seen on account of higher base due to covid product sales in last year Q1 FY23 Rs. 709 cr  New product sales contribution continues in-line with the trend YoY Dc QoQ Dc -6% -6%  Remains a key business for us for

  10. Slide 10: R&D, Capex & Cash flows

    R&D, Capex & Cash flows R&D expenses (Rs. Cr) Capex (Rs. Cr) % to sales 10.1% 8.8% 8.7% 8.2% 8.3% 1,561 1,541 1,654 1,748 1,466 974 696 433 485 331 FY19 FY20 FY21 FY22 Q1 FY23 FY19 FY20 FY21 FY22 Q1 FY23 Free cash flow (Rs. Cr) Net Debt / Equity 0.09 2,165 2,313 2,464 1,191 277 -0.03 -0.04 -0.08 -0.

  11. Slide 11: Key Priorities

    Key Priorities Diversified business model with broad based growth levers Strengthen Invest in new Build robust capabilities – avenues product people, digital (Horizon 2) of pipelines and processes growth Drive productivity Integrate ESG improvement into business 11 | July 28th, 2022 | Q1 FY23 Press

  12. Slide 12: Thank You

    THANK YOU 12 | July 28th, 2022 | Q1 FY23 Press Meet | As per consolidated financial Classification statements under IFRS | PUBLIC

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