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6-K 1 drr0499_6k.htm FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

July 2023

Commission File Number 1-15182

DR. REDDY’S LABORATORIES LIMITED

(Translation of registrant’s name into English)

8-2-337, Road No. 3, Banjara Hills

Hyderabad, Telangana 500 034, India

+91-40-49002900

______________

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F x Form 40-F ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ______

Yes ¨ No x

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ______

Yes ¨ No x

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ¨ No x

If “Yes” is marked, indicate below the file number assigned to registrant in connection with Rule 12g3-2(b): 82-________.

DISCLOSURE OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION

We hereby furnish the United States Securities and Exchange Commission with copies of the following information about our public disclosures regarding our results of operations and financial condition for the quarter ended June 30, 2023.

On July 26, 2023, we announced our results of operations for the quarter ended June 30, 2023. We issued a press release announcing our results under International Financial Reporting Standards (“IFRS”), IFRS Unaudited Consolidated Financial Results, Ind AS Unaudited Consolidated Financial Results with Limited Review report and Ind AS Unaudited Standalone Financial Results with Limited Review report for the quarter ended June 30, 2023, a copy of which is attached to this Form 6-K as Exhibit 99.1 , 99.2 , 99.3 and 99.4 respectively.

We have also made available to the public on our web site, www.drreddys.com, the following: IFRS Unaudited Consolidated Financial Results, Ind AS Unaudited Consolidated Financial Results and Ind AS Unaudited Standalone Financial Results for the quarter ended June 30, 2023.

EXHIBITS

Exhibit Number		Description of Exhibits

99.1		Press Release, “Dr. Reddy’s Q1 FY2024 Financial Results”, July 26, 2023.

99.2		IFRS Unaudited Consolidated Financial Results for the quarter ended June 30, 2023.

99.3		Ind AS Unaudited Consolidated Financial Results for the quarter ended June 30, 2023.

99.4		Ind AS Unaudited Standalone Financial Results for the quarter ended June 30, 2023.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	DR. REDDY’S LABORATORIES LIMITED (Registrant)
Date: July 26, 2023	By:	/s/ K Randhir Singh
		Name:	K Randhir Singh
		Title:	Company Secretary & Compliance Officer

EX-99.1 2 drr0499_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

	CONTACT
DR. REDDY'S LABORATORIES LTD.	INVESTOR RELATIONS	MEDIA RELATIONS
8-2-337, Road No. 3, Banjara Hills,	RICHA PERIWAL	USHA IYER
Hyderabad - 500034. Telangana, India.	richaperiwal@drreddys.com	ushaiyer@drreddys.com

Dr. Reddy’s Q1 FY24 Financial Results

Hyderabad, India, July 26, 2023: Dr. Reddy’s Laboratories Ltd. (BSE: 500124 | NSE: DRREDDY | NYSE: RDY | NSEIFSC: DRREDDY) today announced its consolidated financial results for the quarter ended June 30, 2023. The information mentioned in this release is based on consolidated financial statements under International Financial Reporting Standards (IFRS).

Revenues	Rs. 67,384 Mn
	[Up: 29%* YoY; Up: 7%* QoQ]

Gross Margin	58.7%
	[Q1 FY23: 49.9%; Q4 FY23: 57.2%]

SG&A Expenses	Rs. 17,702 Mn
	[Up: 14% YoY; Down: 2% QoQ]

R&D Expenses	Rs. 4,984 Mn
	[7.4% of Revenues]

EBITDA	Rs. 21,372 Mn
	[31.7% of Revenues]

Profit before Tax	Rs. 18,463 Mn
	[Up: 26%^ YoY; Up: 39%^ QoQ]

Profit after Tax	Rs. 14,025 Mn
	[Up: 18% YoY; Up: 46% QoQ]

* Excluding brand divestment income during the previous periods, Q1 FY24 Sales YoY growth is 35% and QoQ growth is 12%

^ Excluding one offs (settlement income during the current and previous year and brand divestment income during the previous periods), Q1 FY24 PBT YoY growth is 165% and QoQ growth is 68%

Commenting on the results, Co-Chairman & MD, G V Prasad said: “We delivered strong sales growth and witnessed robust margin expansion in Q1FY24 driven by market share gains & new product momentum in our US generics business and superior performance in Russia. We are on track in executing our strategy, delivering growth while continuing to invest in future growth drivers and innovation to create sustainable value.”

All amounts in millions, except EPS

All US dollar amounts based on convenience translation rate of 1 USD = Rs. 82.06

Dr. Reddy’s Laboratories Limited and Subsidiaries

Consolidated Income Statement

Particulars	Q1 FY24						Q1 FY23						YoY			Q4 FY23						QoQ
	($)			(Rs.)			($)			(Rs.)			Gr %			($)			(Rs.)			Gr%
Revenues		821			67,384			636			52,154			29			767			62,968			7
Cost of Revenues		339			27,831			319			26,148			6			329			26,971			3
Gross Profit		482			39,553			317			26,006			52			439			35,997			10
Operating Expenses
Selling, General & Administrative expenses		216			17,702			189			15,493			14			219			17,992			(2	)
Research and Development expenses		61			4,984			53			4,325			15			65			5,366			(7	)
Impairment of non-current assets		0			11			0			0						7			540			(98	)
Other operating (income)/expense		(10	)		(780	)		(73	)		(6024	)		(87	)		(3	)		(281	)		178
Results from operating activities		215			17,636			149			12,212			44			151			12,380			42
Net finance (income)/expense		(10	)		(784	)		(29	)		(2349	)		(67	)		(10	)		(799	)		(2	)
Share of profit of equity accounted investees		(1	)		(43	)		(1	)		(94	)		(54	)		(1	)		(76	)		(43	)
Profit before income tax		225			18,463			179			14,655			26			162			13,255			39
Income tax expense		54			4,438			34			2779			60			45			3,663			21
Profit for the period		171			14,025			145			11,876			18			117			9,592			46

Diluted Earnings Per Share (EPS)		1.03			84.22			0.87			71.40			18			0.70			57.62			46

As % to revenues	Q1 FY24		Q1 FY23		Q4 FY23
Gross Profit		58.7		49.9		57.2
SG&A		26.3		29.7		28.6
R&D		7.4		8.3		8.5
EBITDA		31.7		34.1		25.9
PBT		27.4		28.1		21.1
PAT		20.8		22.8		15.2

EBITDA Computation

Particulars	Q1 FY24						Q1 FY23				Q4 FY23
	($)			(Rs.)			($)		(Rs.)		($)			(Rs.)
Profit before Income Tax		225			18,463			179		14,655		162			13,255
Interest (income) / expense - Net*		(8	)		(685	)		1		84		(8	)		(673	)
Depreciation		28			2,281			25		2,050		27			2,213
Amortization		16			1,302			12		1,000		12			977
Impairment		0			11			0		0		7			540
EBITDA		260			21,372			217		17,789		199			16,312

* Includes income from Investments

All amounts in millions, except EPS

All US dollar amounts based on convenience translation rate of 1 USD = Rs. 82.06

Key Balance Sheet Items

Particulars	As on 30th Jun 2023				As on 31st Mar 2023				As on 30th Jun 2022
	($)		(Rs.)		($)		(Rs.)		($)		(Rs.)
Cash and cash equivalents and other investments		745		61,162		761		62,456		432		35,468
Trade receivables		939		77,095		883		72,486		893		73,274
Inventories		639		52,398		593		48,670		631		51,810
Property, plant and equipment		819		67,207		810		66,462		778		63,826
Goodwill and Other Intangible assets		516		42,306		428		35,094		441		36,213
Loans and borrowings (current & non-current)		153		12,520		164		13,472		301		24,666
Trade payables		337		27,682		322		26,444		305		25,052
Equity		2,989		2,45,259		2,815		2,30,991		2,442		2,00,389

Revenue Mix by Segment

Segment	Q1 FY24		Q1 FY23		YoY			Q4 FY23		QoQ
	(Rs.)		(Rs.)		Gr %			(Rs.)		Gr %
Global Generics		60,083		44,324		36	%		54,257		11	%
North America		31,978		17,815		79	%		25,321		26	%
Europe		5,071		4,141		22	%		4,960		2	%
India		11,482		13,324		-14	%		12,834		-11	%
Emerging Markets		11,552		9,043		28	%		11,142		4	%
Pharmaceutical Services and Active Ingredients (PSAI)		6,709		7,090		-5	%		7,787		-14	%
Others		592		740		-20	%		924		-36	%
Total		67,384		52,154		29	%		62,968		7	%

Revenue Analysis [Q1 FY24]

Global Generics (GG)

Q1 FY24 revenue at Rs. 60.1 billion, YoY growth of 36% and QoQ growth of 11%. The growth was driven by North America, Emerging Markets and Europe.

North America

Q1 FY24 revenue at Rs. 32 billion, YoY growth of 79% and QoQ growth of 26%. The growth was primarily on account of new product launches, continued momentum in existing products, favorable forex rates movement, partly offset by price erosion.

During the quarter, we launched six new products in US and two in Canada. We also commercialized the generic prescription portfolio acquired from Mayne Pharma.

During the quarter, we filed four new Abbreviated New Drug Applications (ANDAs) with the US Food and Drug Administration (USFDA). As of 30th June 2023, cumulatively 85 generic filings are pending for approval with the USFDA (82 ANDAs and 3 NDAs under 505(b)(2) route). Out of the pending 85 ANDAs, 43 are Para IVs, and we believe 17 have ‘First to File’ status.

Europe

Q1 FY24 revenue at Rs. 5.1 billion, YoY growth of 22% and QoQ growth of 2%. The growth was driven by momentum in the base business, new product launches and favorable forex rates movement, partly offset by price erosion.

India

Q1 FY24 revenue at Rs. 11.5 billion, YoY decrease of 14% and QoQ decline of 11%. Excluding brand divestment income, sales of divested portfolio from base and NLEM related price reduction impact, India business registered a high single digit growth. This growth was mainly on account of increase in base business volumes.

Emerging Markets

Q1 FY24 revenue from Emerging Markets at Rs. 11.6 billion, YoY growth of 28% and QoQ growth of 4%.

Revenue from Russia for the quarter at Rs. 5.6 billion, YoY growth of 75% and QoQ growth of 9%. YoY growth was driven by uptick in base business, price increase and biosimilars. This was further aided by low base in previous year. QoQ growth was primarily driven by increase in volumes of existing products.

Revenue from other CIS countries and Romania for the year at Rs. 2.0 billion, YoY growth of 2% and QoQ decline of 14%. YoY growth, primarily on account of price increases on certain products, was offset with decline in base business volumes. QoQ decline was mainly on account of decline in volumes of existing products.

Revenue from Rest of World (RoW) territories for the year at Rs. 4.0 billion, YoY growth of 1% and QoQ growth of 8%. YoY growth, led by new product launches, was offset by price erosion and lower base business volumes. QoQ growth was mainly driven by new product launches and increase in volumes of existing products.

Pharmaceutical Services and Active Ingredients (PSAI)

Q1 FY24 revenue at Rs. 6.7 billion, with a decline of 5% YoY and 14% QoQ. YoY decline was mainly attributable to lower volume pick up by customers for some of our existing products, partly offset with favourable forex rate movement. QoQ decline was mainly attributable to decrease in sales volumes of certain of our existing products.

Income Statement Highlights:

Q1 FY24 gross margin at 58.7% (GG: 63.9%, PSAI: 15.0%). Gross margin increased by ~880 bps YoY and by ~150 bps QoQ. The improvement in gross margin was primarily driven by favorable product mix and higher manufacturing leverage partly offset by benefit from brand divestment income during previous year and price erosion in certain products. QoQ growth was primarily on account of favourable product mix partly offset by brand divestment income benefit during preceding quarter.

Selling, general & administrative (SG&A) expenses for Q1 FY24 at Rs. 17.7 billion, YoY increase of 14% and declined by 2% QoQ. The YoY SG&A spend increase is in-line with business growth and is largely on account of investment in sales & marketing, digitalization and other business initiatives.

Research & development (R&D) expenses in Q1 FY24 at Rs. 5.0 billion. As % to Revenues – Q1FY24: 7.4% | Q4FY23: 8.5% | Q1FY23: 8.3%. We continue our focus on investing in R&D to build a healthy pipeline of new products across our markets for both small molecules and biosimilars.

Other operating income for Q1 FY24 at Rs. 0.8 billion compared to Rs. 6 billion in Q1 FY23. Other operating income during the current quarter included settlement income of Rs. 0.5 billion in Canada relating to the generic abiraterone. The net other income in previous year included settlement income of Rs. 5.6 billion relating to the generic buprenorphine and naloxone sublingual film.

Net Finance income for Q1 FY24 at Rs.0.8 billion compared to Rs. 2.3 billion in Q1 FY24. The higher income during previous year was primarily on account of higher foreign exchange gain.

Profit before Tax for Q1 FY24 at Rs. 18.5 billion, YoY growth of 26%. QoQ growth of 39%

Profit after Tax for Q1 FY24 at Rs. 14.0 billion. The effective tax rate for the quarter has been 24.0% as compared to 19.0% in Q1 FY23. The tax rate was lower in pervious year primarily on account of recognition of unrecognized deferred tax assets on operating tax losses.

Diluted earnings per share for Q1 FY24 is Rs. 84.22.

Other Highlights:

EBITDA for Q1 FY24 at Rs. 21.4 billion and the EBITDA margin is 31.7%.

Capital expenditure for Q1 FY24 at Rs. 3.6 billion.

Free cash-flow for Q1 FY24 at Rs. 6.7 billion (before acquisition payout).

Net cash surplus for the company at Rs. 49.8 billion as on June 30, 2023.

All amounts in millions, except EPS

About key metrics and non-GAAP Financial Measures

This press release 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 adjusted to exclude or include amounts, as the case may be, from the most directly comparable financial measure calculated and presented in accordance with IFRS.

The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with IFRS. Our non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. These measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes.

We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating our business.

For more information on our non-GAAP financial measures and a reconciliation of GAAP to non-GAAP measures, please refer to "Reconciliation of GAAP to Non-GAAP Results" table in this press release.

All amounts in millions, except EPS

Reconciliation of GAAP measures to Non-GAAP measures

Free Cash Flow

	Three months Ended
	June 30, 2023
Net cash generated from operating activities		13,634
Less:
Taxes		(2,384	)
Investments in PPE and Intangibles		(4,512	)
Free Cash Flow before acquisition		6,738
Less:
Acquisitions related pay-out		(7,640	)
Free Cash Flow		(902	)

Operating working capital

	Quarter Ended
	June 30, 2023
Inventories		52,398
Trade Receivables		77,095
Less:
Trade Payables		(27,682	)
Operating Working Capital		101,811

Net cash surplus

	Quarter Ended
	June 30, 2023
Cash and cash equivalents		7,228
Investments		53,934
Short-term borrowings		(6,468	)
Long-term borrowings, non-current		(4,930	)
Less:
Restricted cash balance – Unclaimed dividend		84
Lease liabilities (included in Long-term borrowings, non-current)		(1,130	)
Equity Investments (included in Investments)		957
Net Cash Surplus		49,853

All amounts in millions, except EPS

Computation of Return on Capital Employed

	Year Ended
	June 30, 2023
Profit before tax		18,463
Less:
Interest and Investment Income (Excluding forex gain/loss)		685
Earnings Before Interest and taxes [A]		17,778

Average Capital Employed [B]		1,84,327

Return on Capital Employed (A/B) (Ratio)		38.6	%

Computation of capital employed

	Year Ended June 30,		Year Ended March 31,
	2023		2023
Property Plant and Equipment		67,207		66,462
Intangibles		38,068		30,849
Goodwill		4,238		4,245
Investment in equity accounted associates		4,002		4,702
Other Current Assets		18,511		20069
Other investments		902		660
Other non-current assets		821		800
Inventories		52,398		48,670
Trade Receivables		77,095		72,485
Derivative Financial Instruments		1,760		1,095
Less:
Other Liabilities		38,973		42,320
Provisions		5,451		5,513
Trade payables		27,682		26,444
Operating Capital Employed		1,92,896		1,75,760
Average Capital Employed		1,84,327

Computation of EBITDA

Refer page no. 2 for EBITDA computations.

Earnings Call Details (07:30 pm IST, 10:00 am EDT, July 26, 2023)

The management of the Company will host an Earnings call to discuss the Company’s financial performance and answer any questions from the participants.

Conference Joining Information

Option 1: Express Join with DiamondPass™

Pre-register with the below link and join without waiting for the operator.

https://services.choruscall.in/DiamondPassRegistration/register?confirmationNumber=5910688&linkSecurityString=1f874b8ec0

Option 2: Join through below Dial-In Numbers

Universal Access Number:

+91 22 6280 1219

+91 22 7115 8120

International Toll Free Number:

USA: 1 866 746 2133

UK: 0 808 101 1573

Singapore: 800 101 2045

Hong Kong: 800 964 448

No password/pin number is necessary to dial in to any of the above numbers. The operator will provide instructions on asking questions before and during the call.

Play Back: The play back will be available after the earnings call, till Aug 2nd, 2023. For play back dial in phone No: +91 22 7194 5757, and Playback Code is 75822.

Transcript: Transcript of the Earnings call will be available on the Company’s website: www.drreddys.com

About Dr. Reddy’s: Dr. Reddy’s Laboratories Ltd. (BSE: 500124, NSE: DRREDDY, NYSE: RDY, NSEIFSC: DRREDDY) is a global pharmaceutical company headquartered in Hyderabad, India. Established in 1984, we are committed to providing access to affordable and innovative medicines. Driven by our purpose of ‘Good Health Can’t Wait’, we offer a portfolio of products and services including APIs, generics, branded generics, biosimilars and OTC. Our major therapeutic areas of focus are gastrointestinal, cardiovascular, diabetology, oncology, pain management and dermatology. Our major markets include – USA, India, Russia & CIS countries, China, Brazil and Europe. As a company with a history of deep science that has led to several industry firsts, we continue to plan ahead and invest in businesses of the future. As an early adopter of sustainability and ESG actions, we released our first Sustainability Report in 2004. Our current ESG goals aim to set the bar high in environmental stewardship; access and affordability for patients; diversity; and governance. For more information, log on to: www.drreddys.com.

Disclaimer: This press release may include statements of future expectations and other forward-looking statements that are based on the management’s current views and assumptions and involve known or unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. In addition to statements which are forward-looking by reason of context, the words "may", "will", "should", "expects", "plans", "intends", "anticipates", "believes", "estimates", "predicts", "potential", or "continue" and similar expressions identify forward-looking statements. Actual results, performance or events may differ materially from those in such statements due to without limitation, (i) general economic conditions such as performance of financial markets, credit defaults , currency exchange rates , interest rates, persistency levels and frequency / severity of insured loss events (ii) mortality and morbidity levels and trends, (iii) changing levels of competition and general competitive factors, (iv) changes in laws and regulations and in the policies of central banks and/or governments, (v) the impact of acquisitions or reorganization, including related integration issues, (vi) the susceptibility of our industry and the markets addressed by our, and our customers’, products and services to economic downturns as a result of natural disasters, epidemics, pandemics or other widespread illness, including coronavirus (or COVID-19), and (vii) other risks and uncertainties identified in our public filings with the Securities and Exchange Commission, including those listed under the "Risk Factors" and "Forward-Looking Statements" sections of our Annual Report on Form 20-F for the year ended March 31, 2023. The company assumes no obligation to update any information contained herein.”

EX-99.2 3 drr0499_ex99-2.htm EXHIBIT 99.2

Exhibit 99.2

Dr. Reddys Laboratories Ltd.

8-2-337, Road No. 3, Banjara Hills,

Hyderabad - 500 034, Telangana,

India.

CIN : L85195TG1984PLC004507

Tel : +91 40 4900 2900

Fax : +91 40 4900 2999

Email : mail@drreddys.com

www.drreddys.com

DR. REDDY'S LABORATORIES LIMITED

Unaudited consolidated financial results of Dr. Reddy's Laboratories Limited and its subsidiaries for the quarter ended 30 June 2023 prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB)

					All amounts in Indian Rupees millions
		Quarter ended								Year ended
Sl.No.	Particulars		30.06.2023			31.03.2023		30.06.2022			31.03.2023
			(Unaudited)			(Audited)		(Unaudited)			(Audited)
1	Revenues		67,384			62,968		52,154			245,879
2	Cost of revenues		27,831			26,971		26,148			106,536
3	Gross profit (1 - 2)		39,553			35,997		26,006			139,343
4	Selling, general and administrative expenses		17,702			17,992		15,493			68,026
5	Research and development expenses		4,984			5,366		4,325			19,381
6	Impairment of non-current assets		11			540		-			699
7	Other income, net		(780	)		(281	)	(6,024	)		(5,907	)
	Total operating expenses		21,917			23,617		13,794			82,199
8	Results from operating activities [(3) - (4 + 5 + 6 + 7)]		17,636			12,380		12,212			57,144
	Finance income		1,155			1,153		2,696			4,281
	Finance expense		(371	)		(354	)	(347	)		(1,428	)
9	Finance income, net		784			799		2,349			2,853
10	Share of profit of equity accounted investees, net of tax		43			76		94			370
11	Profit before tax (8 + 9 + 10)		18,463			13,255		14,655			60,367
12	Tax expense, net		4,438			3,663		2,779			15,300
13	Profit for the period/year (11 -12)		14,025			9,592		11,876			45,067
14	Earnings per share:
	Basic earnings per share of Rs.5/- each		84.40			57.74		71.56			271.43
	Diluted earnings per share of Rs.5/- each		84.22			57.62		71.40			270.85
			(Not annualised)			(Not annualised)		(Not annualised)

Segment information

All amounts in Indian Rupees millions

Sl. No.	Particulars	Quarter ended			Year ended
		30.06.2023	31.03.2023	30.06.2022	31.03.2023
		(Unaudited)	(Audited)	(Unaudited)	(Audited)
	Segment wise revenue and results:
1	Segment revenue:
	a) Pharmaceutical Services and Active Ingredients	9,218	10,261	8,133	36,646
	b) Global Generics	60,083	54,257	44,324	213,768
	c) Others	592	924	740	3,042
	Total	69,893	65,442	53,197	253,456
	Less: Inter-segment revenues	2,509	2,474	1,043	7,577
	Net revenues	67,384	62,968	52,154	245,879

2	Segment results:
	Gross profit from each segment
	a) Pharmaceutical Services and Active Ingredients	1,009	1,963	1,110	4,715
	b) Global Generics	38,387	33,498	24,399	132,719
	c) Others	157	536	497	1,909
	Total	39,553	35,997	26,006	139,343
	Less: Selling and other un-allocable expenditure, net of other income	21,090	22,742	11,351	78,976
	Total profit before tax	18,463	13,255	14,655	60,367

Global Generics segment includes operations of Biologics business. Inter-segment revenues represent sale from Pharmaceutical Services and Active Ingredients to Global Generics and Others at cost.

Notes:

The above statement of unaudited consolidated financial results of Dr.Reddy's Laboratories Limited ("the Company"), which have been prepared in accordance with recognition and measurement principles of IAS 34 as issued by the International Accounting Standards Board (IASB) and were reviewed and recommended by Audit Committee and approved by the Board of Directors at their meetings held on 26 July 2023. The Auditors have carried out a limited review on the unaudited consolidated financial results and issued an unmodified report thereon.

“Other income, net” for the quarter ended 30 June 2023 includes Rs.540 million recognised pursuant to settlement agreement with Janssen Group, in settlement of the claim brought in the Federal Court of Canada by the Company and its affiliates for damages under section 8 of the Canadian Patented Medicines (Notice of Compliance) Regulations in regard to the Company’s ANDS for a generic version of Zytiga®(Abiraterone). This transaction pertain to Company’s Global Generics segment.

Revenues for the year ended 31 March 2023 includes :

a) Rs. 2,640 million from sale of certain non-core dermatology brands to Eris Lifesciences Limited for the quarter ended 31 March 2023;

b) Rs. 1,399 million from sale of brands Styptovit-E, Finast, Finast-T and Dynapres to Torrent Pharmaceuticals Limited;

c) Rs. 902 million from sale of brands Z&D, Pedicloryl, Pecef and Ezinapi to J B Chemicals and Pharmaceuticals Limited.

The amounts recognised above are adjusted for expected sales returns. These transactions pertain to Company’s Global Generics segment.

During the quarter ended 31 March 2023, Company considered a total impairment of Rs. 540 million towards:

a. The Company assessed performance of business acquired from Nimbus Health GmbH against the initial estimates and performance of the products. Basis the assessment, the Company has recorded an impairment charge of the carrying values amounting to Rs. 375 million ( Goodwill- Rs. 272 million and Other intangibles- Rs. 103 million). The said impairment charge pertains to the Company’s Global Generics segment.

b.Consequent to adverse market conditions with respect to certain of the Company’s products related intangibles forming part of the company’s Global Generics and Pharmaceutical Services and Active Ingredients segments, the Company assessed the recoverable amount of these products and recognised an amount of Rs. 165 million as impairment charge during the quarter ended 31 March 2023.

Included in “Other income, net” for the year ended 31 March 2023, is an amount of Rs. 991 million representing the Loss on sale of Assets, pursuant to agreement dated 16 December 2022 with Delpharm Development Leiden B.V (Delpharm) for transfer of its certain assets, liabilities and employees at its site at Leiden, Netherlands.This transaction pertains to Company’s Global Generics segment.

The Company has considered the impact of recent tax regulations and developments, including updates to its estimate on the impact of adoption of the Taxation Laws (Amendment) Act 2019, in determining its “Tax expense, net” for the quarter ended 30 June 2023 and year ended 31 March 2023.

During the quarter ended 30 June 2022, the Company entered into a settlement agreement with Indivior Inc., Indivior UK Limited and Aquestive Therapeutics, Inc. Pursuant to the agreement, the Company will receive payments totaling U.S.$ 72 million by 31 March 2024. The said agreement resolves all claims between the parties relating to the Company’s generic buprenorphine and naloxone sublingual film including Indivior’s and Aquestive’s patent infringement allegations and the Company’s antitrust counterclaims. On 28 June 2022 the U.S. Court dismissed all claims and counterclaims pending in the case with prejudice, pursuant to a joint stipulation of dismissal filed by the parties. The Company recognised the present value of the amount receivable at Rs.5,638 million (U.S.$ 71.39 million) on the date of the settlement as ‘Other income, net’ in the consolidated financial results of the Company. The aforesaid transaction pertain to Company’s Global Generics segment.

The Company received an anonymous complaint in September 2020, alleging that healthcare professionals in Ukraine and potentially in other countries were provided with improper payments by or on behalf of the Company in violation of U.S. anti-corruption laws, specifically the U.S. Foreign Corrupt Practices Act. The Company disclosed the matter to the U.S. Department of Justice (“DOJ”), Securities and Exchange Commission (“SEC”) and Securities Exchange Board of India. The Company engaged a U.S. law firm to conduct the investigation at the instruction of a committee of the Company’s Board of Directors. On 06 July 2021 the Company received a subpoena from the SEC for the production of related documents, which were provided to the SEC.
The Company made presentations to the SEC and the DOJ in relation to the investigation with respect to certain countries during the previous fiscal years. The Company also made a presentation to the SEC and the DOJ in relation to its Global Compliance Framework, including the ongoing enhancement initiatives, during the year ended 31 March 2023. The Company is complying with its listing obligations as it relates to updating the regulatory agencies. While the findings from the aforesaid investigations could result in government or regulatory enforcement actions against the Company in the United States and/or foreign jurisdictions, which can lead to civil and criminal sanctions under relevant laws, the outcomes including liabilities are not reasonably ascertainable at this time.

The Company considered the uncertainties relating to the military conflict between Russia and Ukraine, in assessing the recoverability of receivables, goodwill, intangible assets, investments and other assets. For this purpose, the Company considered internal and external sources of information up to the date of approval of these financial results. Based on its judgments, estimates and assumptions, including sensitivity analysis, the Company expects to fully recover the carrying amount of receivables, goodwill, intangible assets, investments and other assets. The Company will continue to closely monitor any material changes to future economic conditions.

The figures of the quarter ended 31 March 2023 are the balancing number between audited figures in respect of the full financial year and the published unaudited year to date figures up to the third quarter of the relevant financial year, which are subject to limited review.

Place: Hyderabad

Date: 26 July 2023

By order of the Board

For Dr. Reddy's Laboratories Limited

G V Prasad

Co-Chairman & Managing Director

EX-99.3 4 drr0499_ex99-3.htm EXHIBIT 99.3

Exhibit 99.3

S.R. Batliboi & Associates LLP
Chartered Accountants

THE SKYVIEW 10
18th Floor, NORTH LOBBY
Survey No. 83/1, Raidurgam
Hyderabad - 500 032, India

Tel : +91 40 6141 6000

Independent Auditor’s Review Report on the Quarterly Unaudited Consolidated Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

Review Report to

The Board of Directors

Dr. Reddy’s Laboratories Limited

We have reviewed the accompanying Statement of Unaudited Consolidated Financial Results for the quarter ended June 30,2023 (the “Statement”) of Dr. Reddy’s Laboratories Limited (the “Holding Company”) and its subsidiaries (the Holding Company and its subsidiaries together referred to as “the Group”) and its joint ventures attached herewith, being submitted by the Holding Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the “Listing Regulations”).

The Holding Company’s Management is responsible for the preparation of the Statement in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, (Ind AS 34) “Interim Financial Reporting” prescribed under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. The Statement has been approved by the Holding Company’s Board of Directors . Our responsibility is to express a conclusion on the Statement based on our review.

We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

We also performed procedures in accordance with the Circular No. CIR/CFD/CMD1/44/2019 dated March 29, 2019 issued by the Securities and Exchange Board of India under Regulation 33(8) of the Listing Regulations, to the extent applicable.

The Statement includes the results of the following entities:

Holding Company:

Dr. Reddy’s Laboratories Limited

Subsidiaries

	1.	Aurigene Oncology limited (Formerly, Aurigene Discovery Technologies Limited)
	2.	Cheminor Investments Limited
	3.	Dr. Reddy’s Bio-Sciences Limited
	4.	Dr. Reddy’s Formulations Limited
	5.	Dr. Reddy’s Farmaceutica Do Brasil Ltda.
	6.	Dr. Reddy's Laboratories SA
	7.	Idea2Enterprises (India) Private Limited
	8.	Imperial Credit Private Limited
	9.	Industrias Quimicas Falcon de Mexico, S.A.de C.V.
	10.	Svaas Wellness Limited
	11.	Aurigene Discovery Technologies (Malaysia) Sdn. Bhd.
	12.	Aurigene Pharmaceutical Services Limited

S.R. Batliboi & Associates LLP, a Limited Liability Partnership with LLP Identity No. AAB-4295

Regd. Office : 22, Camac Street, Block B, 3rd Floor, Kolkata-700 016

S.R. Batliboi & Associates LLP
Chartered Accountants

	13.	beta Institut gemeinnützige GmbH
	14.	betapharm Arzneimittel GmbH
	15.	Chirotech Technology Limited (Under the process of liquidation)
	16.	DRL Impex Limited
	17.	Dr. Reddy’s Laboratories (Australia) Pty. Limited
	18.	Dr. Reddy’s (Beijing) Pharmaceutical Co. Limited
	19.	Dr. Reddy’s Laboratories Canada, Inc.
	20.	Dr. Reddy's Laboratories Chile SPA.
	21.	Dr. Reddy’s Laboratories (EU) Limited
	22.	Dr. Reddy’s Laboratories Inc.
	23.	Dr. Reddy's Laboratories Japan KK
	24.	Dr. Reddy’s Laboratories Kazakhstan LLP
	25.	Dr. Reddy’s Laboratories LLC, Ukraine
	26.	Dr. Reddy's Laboratories Louisiana LLC
	27.	Dr. Reddy’s Laboratories Malaysia Sdn. Bhd.
	28.	Dr. Reddy’s Laboratories New York, LLC
	29.	Dr. Reddy's Laboratories Philippines Inc.
	30.	Dr. Reddy’s Laboratories (Proprietary) Limited
	31.	Dr. Reddy's Laboratories Romania S.R.L.
	32.	Dr. Reddy's Laboratories SAS
	33.	Dr. Reddy's Laboratories Taiwan Limited
	34.	Dr. Reddy's Laboratories (Thailand) Limited
	35.	Dr. Reddy’s Laboratories (UK) Limited
	36.	Dr. Reddy’s New Zealand Limited
	37.	Dr. Reddy's Research and Development B.V.
	38.	Dr. Reddy’s Srl
	39.	Dr. Reddy's Venezuela, C.A.
	40.	Dr. Reddy’s Laboratories LLC
	41.	Lacock Holdings Limited
	42.	Promius Pharma LLC
	43.	Reddy Holding GmbH
	44.	Reddy Netherlands B.V.
	45.	Reddy Pharma Iberia SAU
	46.	Reddy Pharma Italia S.R.L
	47.	Reddy Pharma SAS
	48.	Nimbus Health GmbH

Joint ventures
1	DRES Energy Private Limited
2	Kunshan Rotam Reddy Pharmaceutical Company Limited

Other consolidating entities
1	Cheminor Employees Welfare Trust
2	Dr. Reddy's Employees ESOS Trust
3	Dr. Reddy's Research Foundation

S.R. Batliboi & Associates LLP
Chartered Accountants

Based on our review conducted and procedures performed as stated in paragraph 3 above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with recognition and measurement principles laid down in the aforesaid Indian Accounting Standards (‘Ind AS’) specified under Section 133 of the Companies Act, 2013, as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement.

For S.R. BATLIBOI & ASSOCIATES LLP

Chartered Accountants

ICAI Firm registration number: 101049W/E300004

per Shankar Srinivasan

Partner

Membership No.: 213271

UDIN: 23213271bgsek04092

Place: Hyderabad

Date: July 26, 2023

Dr. Reddys Laboratories Ltd.

8-2-337, Road No. 3, Banjara Hills,

Hyderabad - 500 034, Telangana,

India.

CIN : L85195TG1984PLC004507

Tel : +91 40 4900 2900

Fax : +91 40 4900 2999

Email : mail@drreddys.com

www.drreddys.com

DR. REDDY'S LABORATORIES LIMITED

STATEMENT OF UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER ENDED 30 JUNE 2023

		All amounts in Indian Rupees millions
		Quarter ended							Year ended
Sl. No.	Particulars		30.06.2023		31.03.2023		30.06.2022		31.03.2023
			(Unaudited)		(Audited)		(Unaudited)		(Audited)

1	Revenue from operations
	a) Net sales/income from operations		66,143		58,430		48,180		234,595
	b) License fees and service income		1,241		4,539		3,974		11,284
	c) Other operating income		195		183		175		818
	Total revenue from operations		67,579		63,152		52,329		246,697

2	Other income		1,740		1,385		8,539		10,555

3	Total income (1 + 2)		69,319		64,537		60,868		257,252

4	Expenses
	a) Cost of materials consumed		12,968		10,728		11,891		42,198
	b) Purchase of stock-in-trade		8,771		7,667		8,755		33,670
	c) Changes in inventories of finished goods, work-in-progress and stock-in-trade		(2,363	)	586		(1,533	)	709
	d) Employee benefits expense		11,897		12,760		10,457		46,466
	e) Depreciation and amortisation expense		3,533		3,155		3,018		12,502
	f) Impairment of non-current assets		11		540		-		699
	g) Finance costs		371		354		347		1,428
	h) Selling and other expenses		15,674		15,532		13,347		59,465

	Total expenses		50,862		51,322		46,282		197,137

5	Profit before tax and before share of equity accounted investees(3 - 4)		18,457		13,215		14,586		60,115

6	Share of profit of equity accounted investees, net of tax		43		76		94		370

7	Profit before tax (5+6)		18,500		13,291		14,680		60,485

8	Tax expense/(benefit):
	a) Current tax		7,197		4,279		(2,905	)	8,144
	b) Deferred tax		(2,747	)	(589	)	5,695		7,268

9	Net profit after taxes and share of profit of associates (7 - 8)		14,050		9,601		11,890		45,073

10	Other comprehensive income
	a) (i) Items that will not be reclassified subsequently to profit or loss		106		83		(562	)	(660	)
	(ii) Income tax relating to items that will not be reclassified to profit or loss		-		(12	)	-		(43	)
	b) (i) Items that will be reclassified subsequently to profit or loss		147		1,196		(3,135	)	276
	(ii) Income tax relating to items that will be reclassified to profit or loss		(210	)	(342	)	1,568		306
	Total other comprehensive (loss)/income		43		925		(2,129	)	(121	)

11	Total comprehensive income (9 + 10)		14,093		10,526		9,761		44,952

12	Paid-up equity share capital (face value Rs. 5/- each)		833		833		832		833

13	Other equity								232,028

14	Earnings per equity share (face value Rs. 5/- each)

	Basic		84.55		57.79		71.64		271.47
	Diluted		84.36		57.68		71.49		270.90
			(Not annualised)		(Not annualised)		(Not annualised)

See accompanying notes to the financial results Global Generics includes operations of Biologics business.

DR. REDDY'S LABORATORIES LIMITED

Segment information

All amounts in Indian Rupees millions

		Quarter ended						Year ended
Sl. No.	Particulars	30.06.2023		31.03.2023		30.06.2022		31.03.2023
		(Unaudited)		(Audited)		(Unaudited)		(Audited)
	Segment wise revenue and results:
1	Segment revenue :
	a) Pharmaceutical Services and Active Ingredients		9,365		10,398		8,263		37,195
	b) Global Generics		60,130		54,297		44,371		213,953
	c) Others		593		931		738		3,126
	Total		70,088		65,626		53,372		254,274
	Less: Inter-segment revenue		2,509		2,474		1,043		7,577
	Total revenue from operations		67,579		63,152		52,329		246,697

2	Segment results:
	Gross profit from each segment
	a) Pharmaceutical Services and Active Ingredients		1,013		1,970		1,115		4,733
	b) Global Generics		38,386		33,498		24,399		132,719
	c) Others		156		535		497		1,909
	Total		39,555		36,003		26,011		139,361
	Less: Selling and other un-allocable expenditure/(income), net		21,055		22,712		11,331		78,876
	Total profit before tax		18,500		13,291		14,680		60,485

Inter-segment revenue represents sale from Pharmaceutical Services and Active Ingredients to Global Generics and others at cost.

Segmental capital employed

As certain assets of the Company including manufacturing facilities, development facilities and treasury assets and liabilities are often deployed interchangeably across segments, it is impractical to allocate these assets and liabilities to each segment.

Hence, the details for capital employed have not been disclosed in the above table.

Notes:

The above statement of unaudited consolidated financial results of Dr.Reddy's Laboratories Limited ("the Company"), which have been prepared in accordance with Indian Accounting Standards ("Ind AS") prescribed under section 133 of Companies Act,2013 ("the Act") read with relevant rules issues thereunder, other accounting principles generally accepted in India and guidelines issues by the Securities and Exchange Board of India ("SEBI") were reviewed and recommended by Audit Committee and approved by the Board of Directors at their meetings held on 26 July 2023. The Statutory Auditors have carried out a limited review on the unaudited consolidated financial results and issued an unmodified report thereon.

"Other income" for the quarter ended 30 June 2023 includes Rs.540 million recognised pursuant to settlement agreement with Janssen Group, in settlement of the claim brought in the Federal Court of Canada by the Company and its affiliates for damages under section 8 of the Canadian Patented Medicines (Notice of Compliance) Regulations in regard to the Company’s ANDS for a generic version of Zytiga®(Abiraterone).This transaction pertains to the Company's Global Generics segment.

License fee and service income for the year ended 31 March 2023 includes: a. Rs. 2,640 million from sale of certain non-core dermatology brands to Eris Lifesciences Limited for the quarter ended 31 March 2023; b. Rs. 1,399 million from sale of brands Styptovit-E, Finast, Finast-T and Dynapres to Torrent Pharmaceuticals Limited; c. Rs. 902 million from sale of brands Z&D, Pedicloryl, Pecef and Ezinapi to J B Chemicals and Pharmaceuticals Limited. The amounts recognised above are adjusted for expected sales returns. These transactions pertain to Company’s Global Generics segment.

During the quarter ended 31 March 2023, Company considered a total impairment of Rs. 540 million towards: a. The Company assessed performance of business acquired from Nimbus Health GmbH against the initial estimates and performance of the products. Basis the assessment, the Company has recorded an impairment charge of the carrying values amounting to Rs. 375 million (Goodwill- Rs. 272 million and Other intangibles- Rs. 103 million). The said impairment charge pertains to the Company’s Global Generics segment. b. Consequent to adverse market conditions with respect to certain of the Company’s products related intangibles forming part of the Company’s Global Generics and Pharmaceutical Services and Active Ingredients segments, the Company assessed the recoverable amount of these products and recognised an amount of Rs. 165 million as impairment charge.

Included in “Selling and other expenses” for the year ended 31 March 2023, is an amount of Rs. 991 million representing the Loss on sale of Assets, pursuant to agreement dated 16 December 2022 with Delpharm Development Leiden B.V (Delpharm) for transfer of its certain assets, liabilities and employees at its site at Leiden, Netherlands.This transaction pertains to Company’s Global Generics segment.

The Company has considered the impact of recent tax regulations and developments, including updates to its estimate on the impact of adoption of the Taxation Laws (Amendment) Act 2019, in determining its “Tax expense/(benefit)” for the quarter ended 30 June 2023 and year ended 31 March 2023.

During the quarter ended 30 June 2022, the Company entered into a Settlement Agreement with Indivior Inc., Indivior UK Limited and Aquestive Therapeutics, Inc. Pursuant to the agreement, the Company will receive payments totaling U.S.$ 72 million by 31 March 2024. The said agreement resolves all claims between the parties relating to the Company’s generic buprenorphine and naloxone sublingual film including Indivior’s and Aquestive’s patent infringement allegations and the Company’s antitrust counterclaims. On 28 June 2022 the U.S. Court dismissed all claims and counterclaims pending in the case with prejudice, pursuant to a joint stipulation of dismissal filed by the parties. The Company recognised the present value of the amount receivable at Rs.5,638 million (U.S.$ 71.39 million) on the date of the settlement as ‘Other income’ in the consolidated financial results of the Company. The aforesaid transaction pertain to Company’s Global Generics segment.

DR. REDDY'S LABORATORIES LIMITED

The Company received an anonymous complaint in September 2020, alleging that healthcare professionals in Ukraine and potentially in other countries were provided with improper payments by or on behalf of the Company in violation of U.S. anti-corruption laws, specifically the U.S. Foreign Corrupt Practices Act. The Company disclosed the matter to the U.S. Department of Justice (“DOJ”), Securities and Exchange Commission (“SEC”) and Securities Exchange Board of India. The Company engaged a U.S. law firm to conduct the investigation at the instruction of a committee of the Company’s Board of Directors. On 06 July 2021 the Company received a subpoena from the SEC for the production of related documents, which were provided to the SEC. The Company made presentations to the SEC and the DOJ in relation to the investigation with respect to certain countries during the previous fiscal years. The Company also made a presentation to the SEC and the DOJ in relation to its Global Compliance Framework, including the ongoing enhancement initiatives, during the year ended 31 March 2023. The Company is complying with its listing obligations as it relates to updating the regulatory agencies. While the findings from the aforesaid investigations could result in government or regulatory enforcement actions against the Company in the United States and/or foreign jurisdictions, which can lead to civil and criminal sanctions under relevant laws, the outcomes including liabilities are not reasonably ascertainable at this time.

By order of the Board

For Dr. Reddys Laboratories Limited

G V Prasad

Co-Chairman & Managing Director

Place: Hyderabad

Date: 26 July 2023

EX-99.4 5 drr0499_ex99-4.htm EXHIBIT 99.4

Exhibit 99.4

S.R. Batliboi & Associates LLP
Chartered Accountants

THE SKYVIEW 10
18th Floor, NORTH LOBBY
Survey No. 83/1, Raidurgam
Hyderabad - 500 032, India

Tel : +91 40 6141 6000

Independent Auditor’s Review Report on the Quarterly Unaudited Standalone Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

Review Report to

The Board of Directors

Dr. Reddy’s Laboratories Limited

We have reviewed the accompanying statement of unaudited standalone financial results for the quarter ended June 30, 2023 (the “Statement”) of Dr. Reddy’s Laboratories Limited (the “Company”) attached herewith, being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the “Listing Regulations”).

The Company’s Management is responsible for the preparation of the Statement in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, (Ind AS 34) “Interim Financial Reporting” prescribed under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. The Statement has been approved by the Company’s Board of Directors. Our responsibility is to express a conclusion on the Statement based on our review.

Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standards (‘Ind AS’) specified under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement.

For S.R. BATLIBOI & ASSOCIATES LLP

Chartered Accountants

ICAI Firm registration number: 101049W/E300004

per Shankar Srinivasan

Partner

Membership No.: 213271

UDIN: 23213271BGSEJP6771

Place: Hyderabad

Date: July 26, 2023

S.R. Batliboi & Associates LLP, a Limited Liability Partnership with LLP Identity No. AAB-4295

Regd. Office : 22, Camac Street, Block B, 3rd Floor, Kolkata-700 016

Dr. Reddys Laboratories Ltd.

8-2-337, Road No. 3, Banjara Hills,

Hyderabad - 500 034, Telangana,

India.

CIN : L85195TG1984PLC004507

Tel : +91 40 4900 2900

Fax : +91 40 4900 2999

Email : mail@drreddys.com

www.drreddys.com

DR. REDDY'S LABORATORIES LIMITED

STATEMENT OF UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED 30 JUNE 2023

All amounts in Indian Rupees millions

Sl.			Quarter ended									Year ended
No.		Particulars	30.06.2023			31.03.2023			30.06.2022			31.03.2023
			(Unaudited)			(Audited)			(Unaudited)			(Audited)

	1	Revenue from operations
		a) Net sales / income from operations		54,034			42,491			33,399			162,989
		b) License fees and service income		167			2,887			2,757			6,002
		c) Other operating income		172			162			150			634
		Total revenue from operations		54,373			45,540			36,306			169,625

	2	Other income		2,336			1,148			4,034			5,913

		Total income (1 + 2)		56,709			46,688			40,340			175,538

	3	Expenses
		a) Cost of materials consumed		8,139			8,541			8,047			31,614
		b) Purchase of stock-in-trade		3,842			3,692			4,836			17,793
		c) Changes in inventories of finished goods, work-in-progress and stock-in-trade		(163	)		1,068			172			1,295
		d) Employee benefits expense		7,402			7,651			6,490			28,326
		e) Depreciation and amortisation expense		2,372			2,367			2,215			9,232
		f) Impairment		-			41			-			51
		g) Finance costs		45			26			98			169
		h) Selling and other expenses		12,876			13,936			10,966			48,398

		Total expenses		34,513			37,322			32,824			136,878

	4	Profit before tax (1 + 2 - 3)		22,196			9,366			7,516			38,660

	5	Tax expense / (benefit)
		a) Current tax		5,387			2,319			1,358			8,641
		b) Deferred tax		415			323			1,163			3,891

	6	Net profit for the period / year (4 - 5)		16,394			6,724			4,995			26,128

	7	Other comprehensive income
		a) (i) Items that will not be reclassified to profit or loss		1			86			(1	)		89
		(ii) Income tax relating to items that will not be reclassified to profit or loss		-			(22	)		-			(53	)
				-			-			-
		b) (i) Items that will be reclassified to profit or loss		521			1,350			(4,486	)		(928	)
		(ii) Income tax relating to items that will be reclassified to profit or loss		(130	)		(339	)		1,568			358

		Total other comprehensive (loss)/income		392			1,075			(2,919	)		(534	)

	8	Total comprehensive income (6 + 7)		16,786			7,799			2,076			25,594

	9	Paid-up equity share capital (face value Rs. 5/- each)		833			833			832			833

	10	Other equity											203,909

	11	Earnings per equity share (face value Rs. 5/- each)

		Basic		98.66			40.49			30.10			157.37
		Diluted		98.45			40.41			30.03			157.03
				(Not annualised)			(Not annualised)			(Not annualised)

See accompanying notes to the financial results.

Dr. Reddys Laboratories Ltd.

Segment information

All amounts in Indian Rupees millions

			Quarter ended									Year ended
Sl. No.		Particulars	30.06.2023			31.03.2023			30.06.2022			31.03.2023
			(Unaudited)			(Audited)			(Unaudited)			(Audited)
		Segment wise revenue and results
	1	Segment revenue
		a) Pharmaceutical Services and Active Ingredients		6,885			9,111			5,976			27,896
		b) Global Generics		49,678			38,651			31,221			147,999
		c) Others		131			129			152			497
		Total		56,694			47,891			37,349			176,392

		Less: Inter-segment revenue		2,321			2,351			1,043			6,767

		Total revenue from operations		54,373			45,540			36,306			169,625

	2	Segment results
		Profit / (loss) before tax and interest from each segment
		a) Pharmaceutical Services and Active Ingredients		(596	)		486			(282	)		(1,336	)
		b) Global Generics		22,492			9,054			11,124			46,716
		c) Others		(9	)		(51	)		22			(154	)
		Total		21,887			9,489			10,864			45,226

		Less: (i) Finance costs		45			26			98			169
		(ii) Other un-allocable expenditure / (income), net		(354	)		97			3,250			6,397
		Total profit before tax		22,196			9,366			7,516			38,660

Global Generics includes operations of Biologics business. Inter-segment revenue represents sale from Pharmaceutical Services and Active Ingredients to Global Generics at cost.

Segmental capital employed

Notes:

The above statement of unaudited standalone financial results of Dr. Redyy's Laboratories Limited ("the Company"), which have been prepared in accordance with the Indian Accounting Standards (''Ind AS'') prescribed under Section 133 of the Companies Act, 2013 ("the Act'') read with relevant rules issued thereunder, other accounting principles generally accepted in India and guidelines issued by the Securities and Exchange Board of India ("SEBI'') were reviewed and recommended by the Audit Committee and approved by the Board of Directors at their meetings held on 26 July 2023. The Statutory Auditors have carried out a limited review on the unaudited standalone financial results and issued unmodified report thereon.

Other income for the quarter ended 30 June 2023 includes Rs.540 million recognised pursuant to settlement agreement with Janssen Group, in settlement of the claim brought in the Federal Court of Canada by the Company and its affiliates for damages under section 8 of the Canadian Patented Medicines (Notice of Compliance) Regulations in regard to the Company’s ANDS for a generic version of Zytiga®(Abiraterone).This transaction pertains to the Company's Global Generics segment.

Other income for the quarter ended 30 June 2023 includes dividend income of Rs. 443 million declared by Kunshan Rotan Reddy Pharmaceutical Company Limited during the quarter.

License fee and service income for the year ended 31 March 2023 includes:
a. Rs. 2,640 million from sale of certain non-core dermatology brands in India to Eris Lifesciences Limited for the quarter ended 31 March 2023;
b. Rs. 1,399 million from sale of brands Styptovit-E, Finast, Finast-T and Dynapres to Torrent Pharmaceuticals Limited;
c. Rs. 902 million from sale of brands Z&D, Pedicloryl, Pecef and Ezinapi to J B Chemicals and Pharmaceuticals Limited;
The amounts recognised above are adjusted for expected sales returns. These transactions pertain to the Company’s Global Generics segment.

The Company has considered the impact of recent tax regulations and developments, including updates to its estimate on the impact of adoption of the Taxation Laws (Amendment) Act 2019, in determining its “Tax expense/(benefit)” for the quarter ended 30 June 2023 and year ended 31 March 2023.

By order of the Board

For Dr. Reddy’s Laboratories Limited

Place:	Hyderabad		G V Prasad
Date:	26 July 2023		Co-Chairman & Managing Director