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

Dr. Reddy's Laboratories — Q2 FY24 Earnings Presentation

14 slides from Dr. Reddy's Laboratories's earnings presentation, Oct 27, 2023

  1. Slide 1: Financial Results Q2 FY24

    FINANCIAL RESULTS Q2 FY24 October 27, 2023

  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: Strong momentum maintained in Q2FY24

    Strong momentum maintained in Q2FY24  Highest ever sales; growth supported by new product launches and volume gains  Robust EBITDA and RoCE delivery  Launched Nerivio, our first digital therapeutic product in India  In-licensed NCE Pyrotinib from Hengrui  CAR-T asset ‘DRL-1801’ approved for cli

  4. Slide 4: Consistent performance with steady improvement in margins

    Consistent performance with steady improvement in margins ₹ Cr Q2 FY24 YoY Gr% QoQ Gr% Revenues 6, 880 9% 2% EBITDA 2,176 13% 2% PBT 1,913 19% 4% PAT 1,480 33% 6% 4

  5. Slide 5: Investing for growth to build a healthy portfolio

    Investing for growth to build a healthy portfolio ₹ Cr Gross margin SG&A Expenses R&D Expenses YoY Inc 13% QoQ Inc 6% YoY Inc 12% QoQ Inc 9% 59.1% 1,880 58.7% 58.7% 1,770 1,656 545 487 498 % to 26.3% 26.3% 27.3% % to 7.7% 7.4% 7.9% Sales Sales Q2 Q1 Q2 Q2 Q1 Q2 Q2 Q1 Q2 FY23 FY24 FY24 FY23 FY24 FY24

  6. Slide 6: North America - Continued momentum in core generics business

    North America - Continued momentum in core generics business Revenues Q2 FY24 Rs. 3,170 cr  Growth driven by base business momentum, Mayne portfolio and favourable forex YoY Gr QoQ Gr  Stable pricing environment 13% -1%  Launched 4 new products in US  As per IQVIA MAT for Aug’ 2023, we have grow

  7. Slide 7: India - Focus on profitable growth and driving differentiation

    India - Focus on profitable growth and driving differentiation Revenues Q2 FY24 Rs. 1,186 cr  Growth primarily driven by pricing and new launches, partly offset by NLEM and weak acute season YoY Gr QoQ Gr 3% 3%  Signed In-licensing agreement for Pyrotinib from Hengrui  Launched direct-to-consumer

  8. Slide 8: Emerging Markets - Full year outlook on track

    Emerging Markets - Full year outlook on track, quarter growth impacted by unfavourable forex and seasonality Revenues ₹ Cr Region Q2 FY24 YoY Gr QoQ Gr Q2 FY24 Rs. 1,216 cr Russia 579 -3%^ 3% YoY Gr QoQ Gr CISR 218 1% 12% -1% 5% RoW 419 1% 6% EM 1,216 -1% 5% ^ In constant currency, YoY growth is 4%

  9. Slide 9: Europe - Continued growth momentum driven by volume uptick

    Europe - Continued growth momentum driven by volume uptick Revenues ₹ Cr Region Q2 FY24 YoY Gr QoQ Gr Q2 FY24 Rs. 529 cr Germany 267 14% 9% YoY Gr QoQ Gr 26% 4% UK/OL 175 62% 2% France, Italy, Spain & others 87 12% -1% Europe 529 26% 4%  Growth driven by increase in: o Base business volumes, o New

  10. Slide 10: PSAI - Improved momentum driven by new launches

    PSAI - Improved momentum driven by new launches Revenues  Increase driven by new product launches and favourable forex Q2 FY24 Rs. 703 cr  Remains a key business for both Captive API supplies and External sales YoY Gr QoQ Gr  17 DMF’s filed globally 9% 5% 10 | October 27, 2023 | Q2 FY24 Press Mee

  11. Slide 11: R&D, Capex & Cash flows

    R&D, Capex & Cash flows R&D expenses (₹ Cr) Capex (₹ Cr) % to sales 8.8% 8.7% 8.2% 7.9% 7.7% 1,043 684 1,938 1,466 1,541 1,654 1,748 545 1,132 974 322 498 485 363 FY20 FY21 FY22 FY23 H1 FY24 FY20 FY21 FY22 FY23 H1 FY24 Free cash flow (₹ Cr) Net Debt / Equity 2,121 -0.03 4,566 -0.04 -0.08 2,313 2,464

  12. Slide 12: A diversified business model with broad based growth levers

    In Summary A 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 12 | October 27, 2023 | Q2 FY24 Press Meet | As per

  13. Slide 13: About key metrics and non-GAAP financial measures

    About key metrics and non-GAAP financial measures This press presentation 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 a

  14. Slide 14: Good Health Can't Wait

    Good Health Can’t Wait. 14 | October 27, 2023 | Q2 FY24 Press Meet | As per consolidated financial statements under IFRS

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