Dr. Reddy's Laboratories Ltd. · NSE:DRREDDY
Dr. Reddy's Laboratories — Q2 2025 Earnings Presentation
14 slides from Dr. Reddy's Laboratories's earnings presentation, Nov 5, 2024
Slide 1: Q2FY25 Financial Results
Q2FY25 FINANCIAL RESULTS November 5, 2024 1
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: Highest ever quarterly revenue & PBT
Highest ever quarterly revenue & PBT Q2FY25 Performance FINANCIAL HIGHLIGHTS ₹ 8,016Cr ▪ Highest ever quarterly revenues (with double digit growth) as well as PBT Revenues ▪ Robust EBITDA @28% and an annualised RoCE @28.5% 17%YoY 4% QoQ 8,016 2,333 2,062 1,527 Underlying Financials (₹ Cr) % to Reven
Slide 4: Progressed on our strategic priorities in line with our stated strategy
Progressed on our strategic priorities in line with our stated strategy KEY HIGHLIGHTS OTHER UPDATES ▪ Completed acquisition of Nicotinell® & related NRT brands ▪ ‘VAI’ classification by USFDA to Srikakulam API facility & two formulations facilities in Duvvada ▪ Operationalised the venture with Nest
Slide 5: Performance across geographies driving overall double-digit growth
Performance across geographies driving overall double-digit growth REVENUE BY SEGMENT GLOBAL GENERICS REVENUE BY GEOGRAPHY ₹ 3,728 Cr ₹ 577 Cr North America Europe GLOBAL GENERICS 17%YoY 3% QoQ 9%YoY 10% QoQ 89% 47% 7% ₹ 8,016 Cr 17%YoY 4%QoQ PSAI 11% 17% OTHERS ₹ 1,397 Cr 0% India 18%YoY 5% QoQ ₹ 7
Slide 6: Discipline on overheads and cost efficiency drives profit
Discipline Q1 FY24 on overheads and cost efficiency drives profit Performance GROSS MARGINS (% of Revenues) SG&A EXPENSES (% of Revenues) R&D EXPENSES (% of Revenues) Q2FY25 59.6% Q2FY25 28.7%^ Q2FY25 9.1% Q1FY25 60.4% (81) bps QoQ Q1FY25 29.6% Q1FY25 8.1% +17% QOQ +1% QOQ Q2FY24 58.7% Q2FY24 27.3%
Slide 7: North America: Double digit growth, offset by lower price erosion
Double digit growth, offset by lower price erosion North America Q2FY25 Performance MARKET NEW PENDING 47% PERFORMANCE LAUNCHES APPROVAL 3.4% vs. 5.5% 4 7 75 5 DRL Growth vs. US Generic Q2 6M ANDAs NDAs Market Growth* Includes 46 Para IVs & 22 FTFs *As per IQVIA MAT for Aug’ 24 Revenues ₹ 3,728 Cr 1
Slide 8: India: Growing in double digits, faster than market
Growing in double digits, faster than market India Q2FY25 Performance MARKET NEW BRAND STRATEGIC 17% PERFORMANCE LAUNCHES HIGHLIGHTS 9.5% vs. 8.0% 3 16 + Nestlé + Sanofi DRL Growth vs. IPM Growth* Q2 6M *As per IQVIA MQT Sep’ 24 Revenues ▪ ‘Go Live’ of Nutraceuticals venture with Nestlé India ₹ 1,39
Slide 9: Emerging Markets: New launches and improved volumes drive double-digit growth
Emerging New launches and improved volumes drive double-digit growth Markets Q2FY25 Performance REVENUE SPLIT NEW 18% ₹ 685 Cr LAUNCHES Russia 18%YoY 24% QoQ 22 39 Q2 6M ▪ Growth in Constant currency : +27% YoY New Products across markets CISR Revenues 15% ₹ 215 Cr ₹ 1,455 Cr RoW 38% CISR 2%YoY 12%
Slide 10: Europe: NRT acquisition completed, integration planned in phases
NRT acquisition completed, integration planned in phases Europe Q2FY25 REVENUE SPLIT Performance ₹ 323 Cr STRATEGIC Germany 7% UK HIGHLIGHTS 28% 21%YoY 16% QoQ ▪ Completed acquisition of ₹ 163 Cr Nicotinell® & related NRT France, UK brands Italy, 7%YoY 3% QoQ Others Germany Revenues 56% 16% ▪ Integr
Slide 11: PSAI: Growth led by higher API volumes & CDMO business
PSAI Growth led by higher API Aurigene Oncology Q2FY25 volumes & CDMO business Performance 11% GROSS STRATEGIC MARGIN HIGHLIGHTS 30% 18% ▪ Promising Phase 1 results for India’s 1st trial for novel autologous CAR-T cell therapy for Q2FY25 Q2FY24 multiple myeloma Revenues ▪ Received USFDA approval for
Slide 12: In Summary
In Summary A diversified business model with broad based levers STRENGTHEN CORE BUSINESSES ACROSS MARKETS WITH A ROBUST PRODUCT PORTFOLIO INVEST IN INNOVATIVE & DIFFRENTIATED PRODUCTS (NCEs, CDMO, NUTRA, D2C, OTHERS) FOCUS ON QUALITY AND COMPLIANCE STRENGTHEN CAPABILITIES – PEOPLE, DIGITAL, PROCESSE
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
Slide 14: Good Health Can't Wait
Good Health Can’t Wait. 14 | November 5, 2024 | Q2FY25 Results Update | As per consolidated financial statements under IFRS
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