Dr. Reddy's Laboratories Ltd. · NSE:DRREDDY
Dr. Reddy's Laboratories — Q3 FY23 Earnings Presentation
12 slides from Dr. Reddy's Laboratories's earnings presentation, Jan 25, 2023
Slide 1: Financial Results Q3 FY23
Financial Results Q3 FY23 Jan 25th, 2023 1 | January 25th, 2023 | Q3 FY23 Press Meet | As per consolidated financial statements under IFRS
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
Slide 3: Q3 FY23 - Financial Highlights
Q3 FY23 - Financial Highlights Rs. Cr Highest ever Sales, Profits and Free cash flows in a quarter Q3 FY23 YoY Gr% QoQ Gr% Revenues 6,770 27% 7% EBITDA 1,966 55% 2% PBT 1,635 68% 1% PAT 1,247 77% 12% Free cash flow for the quarter: Rs.1,975 Cr Good progress in Biosimilars 3 | January 25th, 2023 | Q3
Slide 4: We continue to drive productivity while investing for future growth
We continue to drive productivity while investing for future growth Rs. Cr Gross margin SG&A Expenses R&D Expenses YoY Inc 17% QoQ Inc 9% YoY Inc 16% QoQ Dc 1% 1,798 59.1% 59.2% 1,656 53.8% 1,541 487 482 416 % to 29.0% 26.3% 26.6% % to 7.8% 7.7% 7.1% Sales Sales Q3 Q2 Q3 Q3 Q2 Q3 Q3 Q2 Q3 FY22 FY23
Slide 5: North America – Continues with strong growth momentum
North America – Continues with strong growth momentum Revenues Q3 FY23 Rs. 3,057 cr ▪ Strong growth in YoY sales driven by new launches and beneficial forex rates YoY Gr QoQ Gr ▪ Sequential growth driven by key base products and scale up of recent launches +64% +9% ▪ Price erosion is largely in line
Slide 6: India – Steady growth
India – Steady growth Revenues Q3 FY23 Rs. 1,127 cr ▪ YoY growth primarily driven by new launches including acquired / in-licensed YoY Gr QoQ Dc products +10% -2% ▪ Cidmus became #1 brand in heart failure category ▪ Launched 2 new brands during the quarter ▪ Ranked 10th on MQT & MAT basis as of Dece
Slide 7: Emerging Markets – Strong growth led by Russia
Emerging Markets – Strong growth led by Russia Revenues ₹ Cr Q3 FY23 Rs. 1,310 cr Region Q3 FY23 YoY Gr QoQ Gr Russia 687 45% 16% YoY Gr QoQ Gr CISR 224 -6% 4% 14% 7% RoW 398 -10% -4% EM 1,310 14% 7% ▪ Russia – Strong growth led by base business including biosimilars and favorable forex rates ▪ CISR
Slide 8: Europe – Steady growth in business
Europe – Steady growth in business Revenues ₹ Cr Q3 FY23 Rs. 430 cr Region Q3 FY23 YoY Gr QoQ Gr Germany 221 -1% -6% YoY Gr QoQ Gr UK/OL 125 25% 16% 6% 2% France, Italy, Spain & others 84 3% 8% Europe 430 6% 2% ▪ Growth driven by new products partially offset by adverse forex rates ▪ 11 new product
Slide 9: PSAI – Rebound in sales over previous quarter
PSAI – Rebound in sales over previous quarter Revenues ▪ YoY – Growth supported by favorable forex rates Q3 FY23 Rs. 776 cr ▪ QoQ – Improvement in base business volumes YoY Gr QoQ Gr 7% 21% Filings: Q3 FY23 Global DMFs filed 30 US DMFs included above 2 9 | January 25th, 2023 | Q3 FY23 Press Meet | A
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% 7.7% 1,402 482 874 1,561 1,541 1,654 1,748 1,466 292 487 974 251 696 433 485 331 FY19 FY20 FY21 FY22 YTD FY23 FY19 FY20 FY21 FY22 YTD FY23 Q1 Q2 Q3 Free cash flow (Rs. Cr) Net Debt / Equity 2,880 1,975 0.09
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 pipeline and processes growth Drive Integrate ESG productivity into business 11 | January 25th, 2023 | Q3 FY23 Press Meet | As
Slide 12: Thank You
THANK YOU 12 | January 25th, 2023 | Q3 FY23 Press Meet | As per consolidated financial Classification statements under IFRS | PUBLIC
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