Dr. Reddy Labs Q4 Results 2022: PAT at Rs.875 Crores for Q4FY22

On 19th May 2022,  Dr. Reddy Labs announced its quarterly results for the last quarter of FY2022.

Key Highlights:

In USD:

Q4FY22:

- The company's revenue from operations rose 15% to $ 717 Crores in the quarter under review from $ 623 Crores in the same quarter last fiscal.

- EBITDA stood at $ 171 Crores from $ 148 Crores in Q4FY21 saw a growth of 15.54%

- Dr. Reddy Labs reported a net profit of $ 12 Crores for Q4FY22 from $ 48 Crores in Q4FY21, seeing a drop by 76%

FY2022: 

- The company's revenue from operations rose by 13% to $ 2826 Crores for the year from $ 2501 Crores in FY2022.

- EBITDA stood at $ 677 Crores from $ 625 Crores in FY2021, seeing a growth of 8.32%

- Dr. Reddy Labs reported a Net profit of $ 311 Crores for FY2022. 

In INR:

Q4FY22:

- The company's revenue from operations rose 15% to Rs.54368 Crores in the quarter under review from Rs.47284 Crores in the same quarter last fiscal.

- EBITDA stood at Rs.12980 Crores from Rs.11239 Crores in Q4FY21 saw a growth of 15.49%

- Dr. Reddy Labs reported a net profit of Rs.875 Crores for Q4FY22 from Rs.3624 Crores in Q4FY21, seeing a drop by 76%

FY2022: 

- The company's revenue from operations rose by 13% to Rs.214391 Crores for the year from Rs.189722 Crores in FY2022.

- EBITDA stood at Rs.51400 Crores from Rs.47386 Crores in FY2021, seeing a growth of 8.47%

- Dr. Reddy Labs reported a Net profit of Rs.23568 Crores for FY2022.

Operational Highlights:

GLOBAL GENERICS:

-The global generics segment posted revenue at Rs.179.2 billion for FY2022 with a growth of 16% YoY. This growth was driven by good performance across all the markets with strong growth in emerging markets and India.

-For Q4FY22, Revenue stood at Rs.46.1 billion with a growth of 19% YoY. The growth was driven by growth in all the markets.

 NORTH AMERICA:

- Revenues from North America Generics for FY2022 stood at Rs.74.9 billion with a growth of 6%. The growth was driven by new launches and the scaling up of the existing products, which was partially offset by price erosion.

- Revenues for Q4FY22, were at Rs.20 billion with a growth of 14% YoY. The growth was due to new product launches and volume traction in some of the products.

- In Q4FY22, Dr. Reddy Labs launched new products- Vasopressin Injection, Nicotine Lozenges Cherry Flavour (OTC), and Clobetasol Shampoo in Canada and for FY22 the company launched in total 17 products.

- For FY2022, the company filed for 7 ANDAs with US-FDA. As of 31st March 2022, cumulatively 90 generic filings are pending for approval. 

EUROPE:

- For FY2022, revenues from Europe stood at Rs.16.6 billion with a growth of 8% YoY driven by volume traction in base business and new product launches.

- Revenues for Q4FY22 stood at Rs.4.4 billion with a growth of 12% YoY due to new product launches, partly offset by price erosion in the base business.

INDIA:

- For FY2022, revenues from India stood at Rs.42 billion with a growth of 26% YoY driven by an increase in sales volume and price of the existing products, along with the additional revenues from the launch of new products and covid product sales. In FY2022, the company launched 20 new brands in India, including the Sputnik-V vaccine for Covid-19.

- For Q4FY22, Revenue stood at Rs.9.7 billion with a growth of 15% YoY driven by volume traction in the base business, favorable price variance, new product launches, and non-core brand divestments.

EMERGING MARKETS:

- Revenues from Emerging Markets for the year at Rs. 45.7 billion, a growth of 30% YoY.

- Revenues from Russia for the year at Rs. 20.9 billion, YoY growth of 32%. This growth was driven by improved base business performance, the launch of new products during the year, and the divestment of a few non-core brands. 

- Revenues from other CIS countries and Romania for the year at Rs. 8.3 billion, YoY growth of 11 %. Growth was on account of new product launches, partly offset by lower volumes. 

- Revenues from Rest of World (RoW) territories for the year at Rs. 16.5 billion, YoY growth of 40%. Growth primarily on account of new launches, volume traction in key products, and sale of Covid products, partially impacted by adverse price variance in certain markets. Revenues for the quarter are Rs. 12 billion, YoY growth of 36%. 

- Revenues for Russia for Q4 at Rs. 6.9 billion, YoY growth of 70%. The increase is majorly attributable to traction in the volume of base business and income from the divestment of a few non-core brands. 

- Revenues from other CIS countries and Romania for the quarter are Rs.2.3 billion, YoY growth of 20%. YoY growth was primarily due to the launch of new products and price benefits in some of our markets. 

- Revenues from Rest of World (RoW) territories for Q4 are Rs. 2.9 billion, a YoY decline of 1 %. 

Pharmaceutical Services and Active Ingredients (PSAI) 

- Revenues from PSAI at Rs. 30.7 billion. YoY decline of 4%. The decline was majorly on account of price erosion in some of our products.

- Revenues for Q4 at Rs. 7.6 billion, YoY decline of 5% and QoQ growth of 4%. YoY decline was primarily due to lower volumes and price erosion while the QoQ growth was driven by new product sales.

- During the year, we have filed 10 DMFs in the US, of which 3 DMFs were filed in Q4FY22.

Proprietary Products (PP) & Others

- Revenues from PP & others for the year at Rs. 4.5 billion, YoY growth of 34%. The growth is attributable to the recognition of a license fee associated with the sale of our U.S. and Canada territory rights for ELYXYB® (celecoxib oral solution) 25 mg/ml, to BioDelivery Sciences International, Inc during Q2 FY22. 

- Revenues for Q4 at Rs. 693 million

Commenting on the results, Co-Chairman and MD, G V Prasad said: “ We delivered healthy growth in revenue, though the profits were impacted by impairment charges. In spite of multiple external challenges, our core business performed well driven by an increase in market share, some strong launches, and productivity improvement. We will continue to focus on growing our core businesses, invest in future growth drivers, and work towards greater integration of Sustainability in our businesses.”

The board has recommended a final dividend of Rs.30 per share.