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6-K 1 drr0560_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

January 2024

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 and nine months ended December 31, 2023.

On January 30, 2024, we announced our results of operations for the quarter and nine months ended December 31, 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 and nine months ended December 31, 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 and nine months ended December 31, 2023.

EXHIBITS

Exhibit Number		Description of Exhibits

99.1		Press Release, “Dr. Reddy’s Q3 FY2024 Financial Results”, January 30, 2024.

99.2		IFRS Unaudited Consolidated Financial Results for the quarter and nine months ended December 31, 2023.

99.3		Ind AS Unaudited Consolidated Financial Results for the quarter and nine months ended December 31, 2023.

99.4		Ind AS Unaudited Standalone Financial Results for the quarter and nine months ended December 31, 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: January 30, 2024	By:	/s/ K Randhir Singh
		Name:	K Randhir Singh
		Title:	Company Secretary & Compliance Officer

EX-99.1 2 drr0560_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,

Hyderabad - 500034. Telangana, India.

RICHA PERIWAL richaperiwal@drreddys.com

AISHWARYA SITHARAM aishwaryasitharam@drreddys.com

USHA IYER ushaiyer@drreddys.com

Dr. Reddy’s Q3 & 9M FY24 Financial Results

Hyderabad, India, January 30, 2024: Dr. Reddy’s Laboratories Ltd. (BSE: 500124 | NSE: DRREDDY | NYSE: RDY | NSEIFSC: DRREDDY) today announced its consolidated financial results for the quarter and nine months ended December 31, 2023. The information mentioned in this release is based on consolidated financial statements under International Financial Reporting Standards (IFRS).

	Q3FY24	9MFY24

Revenues	Rs. 72,148 Mn	Rs. 208,334 Mn
	[Up: 7% YoY; Up: 5% QoQ]	[Up: 14% YoY; Up]

Gross Margin	58.5%	58.6%
	[Q3FY23: 59.2%; Q2FY24: 58.7%]	[9M FY23: 56.5%]

SG&A Expenses	Rs. 20,228 Mn	Rs. 56,725 Mn
	[Up: 12% YoY; 8% QoQ]	[Up: 13% YoY]

R&D Expenses	Rs. 5,565 Mn	Rs. 15,996 Mn
	[7.7% of Revenues]	[7.7% of Revenues]

EBITDA	Rs. 21,107 Mn	Rs. 64,278 Mn
	[29.3% of Revenues]	[30.9% of Revenues]

Profit before Tax	Rs. 18,257 Mn	Rs. 55,854 Mn
	[Up: 12% YoY; Down: 5% QoQ]	[Up: 19% YoY]

Profit after Tax	Rs. 13,789 Mn	Rs. 42,614 Mn
	[Up: 11% YoY; Down: 7% QoQ]	[Up: 20% YoY]

Commenting on the results, Co-Chairman & MD, G V Prasad said: “We delivered another quarter of highest-ever sales and robust financial performance aided by new products performance and base business market share gain in the U.S., new products launch momentum and strong performance in Europe. We continue to strengthen our core businesses and invest in innovative products including strategic collaborations for novel molecules to meet unmet needs of patients.”

All amounts in millions, except EPS

All US dollar amounts based on convenience translation rate of 1 USD = Rs. 83.19

Dr. Reddy’s Laboratories Limited & Subsidiaries

Revenue Mix by Segment [Q3FY24]

	Q3FY24		Q3FY23		YoY			Q2FY24		QoQ
Particulars	(Rs.)		(Rs.)		Gr %			(Rs.)		Gr%
Global Generics		63,095		59,241		7	%		61,084		3	%
North America		33,492		30,567		9	%		31,700		5	%
Europe		4,970		4,303		15	%		5,286		-6	%
India		11,800		11,274		5	%		11,860		-1	%
Emerging Markets		12,833		13,097		-2	%		12,163		6	%
Pharmaceutical Services and Active Ingredients (PSAI)		7,839		7,758		1	%		7,034		11	%
Others		1,214		701		73	%		684		78	%
Total		72,148		67,700		7	%		68,802		5	%

Revenue Mix by Segment [9M FY24]

	9MFY24		9MFY23		YoY
Particulars	(Rs.)		(Rs.)		Gr%
Global Generics		184,262		159,511		16	%
North America		97,245		76,383		27	%
Europe		15,326		12,644		21	%
India		35,141		36,113^		-3	%
Emerging Markets		36,550		34,371		6	%
Pharmaceutical Services and Active Ingredients (PSAI)		21,582		21,282		1	%
Others		2,490		2,119		18	%
Total		208,334		182,911		14	%

^ includes divestment income in India in Q1FY23, excluding which India YoY growth is at 4% and total company growth is at 15%

Consolidated Income Statement [Q3FY24]

	Q3FY24						Q3FY23						YoY			Q2FY24						QoQ
Particulars	($)			(Rs.)			($)			(Rs.)			Gr %			($)			(Rs.)			Gr%
Revenues		867			72,148			814			67,700			7			827			68,802			5
Cost of Revenues		360			29,945			332			27,607			8			342			28,434			5
Gross Profit		507			42,203			482			40,093			5			485			40,368			5
% of revenues					58.5	%					59.2	%								58.7	%
Operating Expenses
Selling, General & Administrative expenses		243			20,228			216			17,981			12			226			18,795			8
% of revenues					28.0	%					26.6	%								27.3	%
Research & Development expenses		67			5,565			58			4,821			15			65			5,447			2
% of revenues					7.7	%					7.1	%								7.9	%
Impairment of non-current assets		1			110			2			134			(18	)		1			55			100
Other operating (income)/expense		(12	)		(967	)		9			732			(232	)		(22	)		(1796	)		(46	)
Results from operating activities		208			17,267			197			16,425			5			215			17,867			(3	)
Net finance (income)/expense		(12	)		(963	)		2			139			(793	)		(15	)		(1225	)		(21	)
Share of profit of equity accounted investees, net of tax		(0	)		(27	)		(1	)		(60	)		(55	)		(1	)		(42	)		(36	)
Profit before income tax		219			18,257			196			16,346			12			230			19,134			(5	)
% of revenues					25.3	%					24.1	%								27.8	%
Income tax expense		54			4,468			47			3875			15			52			4,334			3
Profit for the period		166			13,789			150			12,471			11			178			14,800			(7	)
% of revenues					19.1	%					18.4	%								21.5	%

Diluted Earnings Per Share (EPS)		0.99			82.68			0.90			74.95			10			1.07			88.78			(7	)

EBITDA Computation [Q3FY24]

*Includes income from Investments

	Q3FY24						Q3FY23						Q2FY24
Particulars	($)			(Rs.)			($)			(Rs.)			($)			(Rs.)
Profit before Income Tax		219			18,257			196			16,346			230			19,134
Interest (income) / expense - Net*		(12	)		(1,030	)		(1	)		(93	)		(14	)		(1,166	)
Depreciation		29			2,437			27			2,245			29			2,437
Amortization		16			1,333			12			1,026			16			1,353
Impairment		1			110			2			134			1			55
EBITDA		254			21,107			236			19,658			262			21,813
% of revenues					29.3	%					29.0	%					31.7	%

Consolidated Income Statement [9MFY24]

	9MFY24						9MFY23						YoY
Particulars	($)			(Rs.)			($)			(Rs.)			Gr %
Revenues		2,504			208,334			2,199			182,911			14
Cost of Revenues		1,036			86,210			956			79,565			8
Gross Profit		1,468			122,124			1,242			103,346			18
% of revenues					58.6	%					56.5	%
Operating Expenses
Selling, General & Administrative expenses		682			56,725			601			50,034			13
% of revenues					27.2	%					27.4	%
Research & Development expenses		192			15,996			168			14,015			14
% of revenues					7.7	%					7.7	%
Impairment of non-current assets		2			176			2			159			11
Other operating (income)/expense		(43	)		(3,543	)		(68	)		(5,626	)		(37	)
Results from operating activities		634			52,770			538			44,764			18
Net finance (income)/expense		(36	)		(2,972	)		(25	)		(2,054	)		45
Share of profit of equity accounted investees		(1	)		(112	)		(4	)		(294	)		(62	)
Profit before income tax		671			55,854			566			47,112			19
% of revenues					26.8	%					25.8	%
Income tax expense		159			13,240			140			11,637			14
Profit for the period		512			42,614			426			35,475			20
% of revenues					20.5	%					19.4	%
Diluted Earnings Per Share (EPS)		3.07			255.68			2.56			213.24			20

EBITDA Computation [9MFY24]

*Includes income from Investments

	9MFY24					9MFY23
Particulars	($)		(Rs.)			($)		(Rs.)
Profit before Income Tax		671		55,854			566		47,112
Interest (income) / expense - Net*		-35		-2,881			1		52
Depreciation		86		7,155			77		6,402
Amortization		48		3,974			37		3,045
Impairment		2		176			2		159
EBITDA		773		64,278			682		56,769
% of revenues				30.9	%				31.0	%

Key Balance Sheet Items

	As on 31st Dec 2023				As on 30th Sep 2023				As on 31st Dec 2022
Particulars	($)		(Rs.)		($)		(Rs.)		($)		(Rs.)
Cash and cash equivalents and other investments		922		76,665		839		69,784		603		50,164
Trade receivables		943		78,417		838		69,722		902		75,046
Inventories		731		60,796		680		56,592		593		49,326
Property, plant, and equipment		875		72,795		847		70,478		781		64,996
Goodwill and Other Intangible assets		495		41,192		496		41,278		426		35,401
Loans and borrowings (current & non-current)		239		19,851		159		13,230		212		17,663
Trade payables		374		31,113		366		30,485		313		26,023
Equity		3,220		267,850		3,042		253,086		2,648		220,273

Key Business Highlights [Q3FY24]

Acquired the MenoLabs branded portfolio of women’s health focused supplements in the U.S.

Exclusive collaboration with Coya Therapeutics for development and commercialization of COYA 302, an Investigational Combination Therapy for treatment of Amyotrophic Lateral Sclerosis (ALS)

Inspections completed by U.S. FDA at Bachupally facility. The response to the observations were submitted within stipulated timelines.

Product specific Pre-Approval Inspection (PAI) at biologics manufacturing facility in October 2023, post which a Form 483 with 9 observations was issued,

Routine cGMP inspection at formulations manufacturing facility (FTO-3) in October 2023, post which a Form 483 with 10 observations was issued and

GMP and Pre-Approval Inspection (PAI) at R&D unit in December 2023, post which a Form 483 with 3 observations was issued.

ESG & other Highlights [Q3FY24]

1st Indian pharma company to be featured in the Dow Jones Sustainability World Index for 2023 and retaining our place in the Emerging Markets Index for the 8th year in a row.

Awarded ‘Gold Medal’ status by EcoVadis.

MSCI ESG ratings upgraded from BB to BBB

Awarded Golden Peacock awards for Corporate Social Responsibility, 2023 and Excellence in Corporate Governance, 2023

Received ICSI Corporate Social Responsibility Excellence award - 2023, in recognition of our contribution to society through our CSR initiatives.

1st Indian pharma company to pledge towards a plantation initiative covering 2,900 hectares by 2028 as part of the World Economic Forum’s 1t.org.

Revenue Analysis [Q3FY24]

Q3FY24 consolidated revenue at Rs. 72.1 billion, YoY growth of 7% and QoQ growth of 5%. The YoY growth was primarily driven by market share gains for our existing products in North America and continuation of our growth journey in Europe.

Global Generics (GG)

Q3FY24 revenue at Rs. 63.1 billion, YoY growth of 7% and QoQ growth of 3%. YoY growth was primarily driven by increase in volumes of our base business, new product launches, partially offset by price erosion in certain markets. Sequential growth was driven by increase in volumes of our base business, offset partially due to price erosion in certain markets.

North America

Q3FY24 revenue at Rs. 33.5 billion, YoY growth of 9% and QoQ growth of 5%. YoY growth was on account of market share expansion in certain existing key products and revenues from new product launches, partly offset by price erosion. Sequential growth was driven by net increase in volumes of our base business.

During the quarter, we launched 4 new products in the region, of which 2 were launched in the U.S.

During the quarter, we filed 2 new Abbreviated New Drug Applications (ANDAs) with the US Food and Drug Administration (USFDA). As of 31st December 2023, cumulatively 79 generic filings are pending for approval with the USFDA (75 ANDAs and 4 NDAs under 505(b)(2) route). Out of the pending 79 generic filings, 41 are Para IVs, and we believe 21 have ‘First to File’ status.

Europe

Q3FY24 revenue at Rs. 5.0 billion, YoY growth of 15% and QoQ decline of 6%. YoY growth was primarily on account of contribution from new product launches, improvement in base business volumes and favourable currency exchange rate movements, partly offset by price erosion. QoQ decline was primarily on account of price erosion in certain countries, partly offset by increase in volumes of our base business.

Germany at Rs. 2.7 billion, YoY growth of 21% and QoQ growth of 0.1%.

UK/OL at Rs. 1.4 billion, YoY growth of 9% and QoQ decline of 22%.

Rest of Europe at Rs. 0.9 billion, YoY growth of 11% and QoQ growth of 7%.

During the quarter, we launched 6 new products in the region.

India

Q3FY24 revenue at Rs. 11.8 billion, YoY growth of 5% and QoQ decline of 1%. YoY growth was largely attributable to revenues from new products launches while QoQ decline was largely on lower volumes in base business.

During the quarter, we launched 3 new brands in the country.

Emerging Markets

Q3FY24 revenue at Rs. 12.8 billion, YoY decline of 2% and QoQ growth of 6%. YoY decline is attributable to unfavorable forex movement, while QoQ growth was driven by volume gains for few existing products and partially offset by unfavorable currency exchange rate movements.

Revenue from Russia at Rs. 5.9 billion, YoY decline of 14% and QoQ growth of 2%.

YoY decline was majorly due to unfavorable currency exchange rate movements & high base business.

QoQ growth was largely on account of improved volumes and increase in certain brand prices, partially offset by unfavorable currency exchange rate movements.

Revenue from other CIS countries and Romania at Rs. 2.3 billion, YoY growth of 4% and QoQ growth of 7%.

YoY growth was primarily on account of increase in price of certain brands, new product launches and favorable forex.

QoQ growth was driven by increase in base business volumes and new launches.

Revenue from Rest of World (RoW) territories at Rs. 4.6 billion, YoY growth of 16% and QoQ growth of 10%.

YoY growth was largely attributable to contribution from new products.

QoQ growth was primarily driven by increase in base business volumes and new product launches.

Pharmaceutical Services and Active Ingredients (PSAI)

Q3FY24 revenue at Rs. 7.8 billion, with a growth of 1% YoY and 11% QoQ. YoY growth was mainly driven by revenues from new products, favourable forex, partially offset by price decline and low business volumes. QoQ growth was driven by improved volumes in base business and contributions from new product launches. Excluding revenue in base period from COVID-19 products, PSAI business grew in double-digit.

During the quarter, we filed 38 Drug Master Files (DMFs) globally.

Income Statement Highlights:

Q3FY24 gross margin at 58.5% (GG: 61.9%, PSAI: 29.4%). Gross margin decreased by ~73 bps YoY and 18 bps sequentially. The decline in margin was primarily driven by lower prices for certain products in generic markets, partly offset by improvement in product mix and productivity.

Selling, general & administrative (SG&A) expenses for Q3FY24 at Rs. 20.2 billion, YoY increase of 12% and by 8% QoQ. The YoY SG&A spend increase is largely on account of investments in sales & marketing activities, digitalization capabilities, and new business initiatives.

Research & development (R&D) expenses in Q3FY24 at Rs. 5.6 billion. As % to Revenues – Q3FY24: 7.7% | Q2FY24: 7.9% | Q3FY23: 7.1%. R&D investments are driven by ongoing clinical trials on differentiated assets, as well as other developmental efforts to build a healthy pipeline of new products across our markets for both small molecules and biosimilars.

Other operating income for Q3FY24 at Rs. 0.9 billion compared to other operating expenses of Rs. 0.7 billion in Q3FY23. Other operating income was largely on account of sale of non-current assets.

Net Finance income for Q3FY24 at Rs.0.9 billion compared to net finance expense of Rs. 0.1 billion in Q3FY23. The higher income was primarily on account of profit on sale of units of mutual funds and other investments.

Profit before Tax for Q3FY24 at Rs. 18.3 billion, YoY growth of 12%. QoQ decline of 5%.

Profit after Tax for Q3FY24 at Rs. 13.8 billion, YoY growth of 11%. QoQ decline of 7%. The effective tax rate for the quarter has been 24.5% as compared to 23.7% in Q3FY23. The higher tax rate is mainly due to increase in the proportion of the Company's profits coming from higher tax jurisdictions, partly offset by adoption of corporate tax rate under section 115BAA of the Income Tax Act of India.

Diluted earnings per share for Q3FY24 is Rs. 82.68

Other Highlights:

EBITDA for Q3FY24 at Rs. 21.1 billion and the EBITDA margin is 29.3%.

Operating Working Capital at Rs. 108.1 billion.

Capital expenditure for Q3FY24 at Rs. 3.1 billion.

Free cash-flow for Q3FY24 at Rs. 0.2 billion.

Net cash surplus at Rs. 59.1 billion as on December 31, 2023.

Debt to Equity is (0.21).

ROCE for the company is 37% (annualized).

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 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 Dec. 31, 2023
Particulars	(Rs.)
Net cash generated from operating activities		10,762
Less:
Taxes		6027
Investments in PPE and Intangibles		4518
Free Cash Flow		217

Operating working capital

	As on 31st Dec 2023
Particulars	(Rs.)
Inventories		60,796
Trade Receivables		78,417
Less:
Trade Payables		31,113
Operating Working Capital		108,100

Net cash surplus

	As on 31st Dec 2023
Particulars	(Rs.)
Cash and cash equivalents		7,535
Investments		69,130
Short-term borrowings		(12,343	)
Long-term borrowings, non-current		(6,152	)
Less:
Restricted cash balance – Unclaimed dividend		122
Lease liabilities (included in Long-term borrowings, non-current)		(2,352	)
Equity Investments (Included in Investments)		1328
Net Cash Surplus		59,072

Computation of Return on Capital Employed

	As on 31st Dec 2023
Particulars	(Rs.)
Profit before tax		18,257
Less:
Interest and Investment Income (Excluding forex gain/loss)		1,030
Earnings Before Interest and taxes [A]		17,227

Average Capital Employed [B]		191,125

Annualized Return on Capital Employed (A/B) (Ratio)		37	%

Computation of capital employed

	Year Ended
Particulars	Dec 31, 2023		Mar 31, 2023
Property Plant and Equipment		72,795		66,462
Intangibles		36,905		30,849
Goodwill		4,287		4,245
Investment in equity accounted associates		4,218		4,702
Other Current Assets		23,512		20,069
Other investments		4,115		660
Other non-current assets		1,128		800
Inventories		60,796		48,670
Trade Receivables		78,417		72,485
Derivative Financial Instruments		-16		1,095
Less:
Other Liabilities		43,159		42,320
Provisions		5,394		5,513
Trade payables		31,113		26,444
Operating Capital Employed		206,491		175,760
Average Capital Employed		191,125

Computation of EBITDA

Refer page no. 3 & 4.

Earnings Call Details

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

Date: January 30, 2024

Time: 19:30 pm IST | 10:00 am EDT

Conference Joining Information

Option 1: Pre-register with the below link and join without waiting for the operator

https://services.choruscall.in/DiamondPassRegistration/register?confirmationNumber=1745002&linkSecurityString=a262ce748

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 February 6th, 2024. For play back dial in phone No: +91 22 7194 5757, and Playback Code is 61003.

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 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, and (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.” The company assumes no obligation to update any information contained herein.

EX-99.2 3 drr0560_ex99-2.htm EXHIBIT 99.2

Exhibit 99.2

Dr. Reddy’s 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 and nine months ended 31 December 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						Nine months ended				Year ended
				31.12.2023		30.09.2023		31.12.2022		31.12.2023		31.12.2022		31.03.2023
Sl. No.		Particulars		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Audited)
	1	Revenues		72,148		68,802		67,700		208,334		182,911		245,879
	2	Cost of revenues		29,945		28,434		27,607		86,210		79,565		106,536
	3	Gross profit (1 - 2)		42,203		40,368		40,093		122,124		103,346		139,343
	4	Selling, general and administrative expenses		20,228		18,795		17,981		56,725		50,034		68,026
	5	Research and development expenses		5,565		5,447		4,821		15,996		14,015		19,381
	6	Impairment of non-current assets		110		55		134		176		159		699
	7	Other (income)/expense,net		(967	)	(1,796	)	732		(3,543	)	(5,626	)	(5,907	)
		Total operating expenses		24,936		22,501		23,668		69,354		58,582		82,199
	8	Results from operating activities [(3) - (4 + 5 + 6 + 7)]		17,267		17,867		16,425		52,770		44,764		57,144
		Finance income		1,357		1,578		279		4,090		3,128		4,281
		Finance expense		(394	)	(353	)	(418	)	(1,118	)	(1,074	)	(1,428	)
	9	Finance income/(expense),net		963		1,225		(139	)	2,972		2,054		2,853
	10	Share of profit of equity accounted investees, net of tax		27		42		60		112		294		370
	11	Profit before tax (8 + 9 + 10)		18,257		19,134		16,346		55,854		47,112		60,367
	12	Tax expense,net		4,468		4,334		3,875		13,240		11,637		15,300
	13	Profit for the period/year (11 -12)		13,789		14,800		12,471		42,614		35,475		45,067
	14	Earnings per share:
		Basic earnings per share of Rs.5/- each		82.81		88.96		75.09		256.17		213.69		271.43
		Diluted earnings per share of Rs.5/- each		82.68		88.78		74.95		255.68		213.24		270.85
				(Not annualised)		(Not annualised)		(Not annualised)		(Not annualised)		(Not annualised)

Segment information			All amounts in Indian Rupees millions
			Quarter ended			Nine months ended		Year ended
			31.12.2023	30.09.2023	31.12.2022	31.12.2023	31.12.2022	31.03.2023
Sl. No.		Particulars	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
		Segment wise revenue and results:
	1	Segment revenue:
		a) Pharmaceutical Services and Active Ingredients	10,390	9,446	10,142	29,054	26,385	36,646
		b) Global Generics	63,095	61,084	59,241	184,262	159,511	213,768
		c) Others	1,214	684	701	2,490	2,118	3,042
		Total	74,699	71,214	70,084	215,806	188,014	253,456
		Less: Inter-segment revenues	2,551	2,412	2,384	7,472	5,103	7,577
		Net revenues	72,148	68,802	67,700	208,334	182,911	245,879

	2	Segment results:
		Gross profit from each segment
		a) Pharmaceutical Services and Active Ingredients	2,306	1,254	1,409	4,569	2,752	4,715
		b) Global Generics	39,075	38,873	38,255	116,335	99,221	132,719
		c) Others	822	241	429	1,220	1,373	1,909
		Total	42,203	40,368	40,093	122,124	103,346	139,343
		Less: Selling and other un-allocable expenditure, net of other income	23,946	21,234	23,747	66,270	56,234	78,976
		Total profit before tax	18,257	19,134	16,346	55,854	47,112	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 30 January 2024. The Auditors have carried out a limited review on the unaudited consolidated financial results and issued an unmodified report thereon.

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;

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

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 and nine months ended 31 December 2023, an amount of Rs.1,148 million and Rs.3,422 million, respectively, and during the quarter and nine months ended 31 December 2022, an amount of Rs.435 million and Rs.2,806 million, respectively, representing government grants have been accounted as a reduction from Cost of revenues.

“Other (income)/expense, net” for the nine months ended 31 December 2023 includes Rs.540 million recognised, in April 2023, 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)/expense, net” for quarter ended 30 September 2023 includes Rs.984 million recognised pursuant to settlement of product related litigation by the Company and its affiliates in the United Kingdom. This transaction pertains to the Company's Global Generics segment.

Included in “Other (income)/expense, net” for the year ended 31 March 2023, is an amount of Rs.991 million representing the Loss on sale of Assets recognised in December 2022, 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.

"Other (income)/expense, net" for the nine months ended 31 December 2022 includes an amount of Rs.5,638 million (U.S.$71.39 million discounted to present value) recognised in June 2022 towards the settlement of an ongoing litigation relating to launch of a product with Indivior Inc., Indivior UK Limited and Aquestive Therapeutics, Inc.

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 nine months ended 31 December 2023 and year ended 31 March 2023.

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 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.

Place: Hyderabad

Date: 30 January 2024

By order of the Board

For Dr. Reddy's Laboratories Limited

G V Prasad

Co-Chairman & Managing Director

EX-99.3 4 drr0560_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 and Year to Date 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 and nine months ended December 31, 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”), its associate and 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 issued by the SEBI 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

Aurigene Oncology limited (Formerly, Aurigene Discovery Technologies Limited)

Cheminor Investments Limited

Dr. Reddy’s Bio-Sciences Limited

Dr. Reddy’s Formulations Limited

Dr. Reddy’s Farmaceutica Do Brasil Ltda.

Dr. Reddy's Laboratories SA

Idea2Enterprises (India) Private Limited

Imperial Owners and Land Possessions Private Limited (Formerly, Imperial Credit Private Limited)

Industrias Quimicas Falcon de Mexico, S.A.de C.V.

10.

Svaas Wellness Limited

11.

Aurigene Discovery Technologies (Malaysia) Sdn. Bhd.

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

12.

Aurigene Pharmaceutical Services Limited

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

49.

Dr. Reddy’s Laboratories Jamaica Limited (From 25 September 2023)

Associate

O2 Renewable Energy IX Private Limited (From November 10, 2023)

Joint ventures

DRES Energy Private Limited

Kunshan Rotam Reddy Pharmaceutical Company Limited

Other consolidating entities

Cheminor Employees Welfare Trust

Dr. Reddy's Employees ESOS Trust

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: 24213271BKEKYN6989
Place: Visakhapatnam
Date: January 30, 2024

Dr. Reddy’s 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 AND NINE MONTHS ENDED 31 DECEMBER 2023

			All amounts in Indian Rupees millions
				Quarter ended						Nine months ended				Year ended
				31.12.2023		30.09.2023		31.12.2022		31.12.2023		31.12.2022		31.03.2023
Sl. No.		Particulars		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Audited)

	1	Revenue from operations
		a) Net sales/income from operations		69,647		67,348		66,353		203,138		176,165		234,595
		b) License fees and service income		2,501		1,454		1,346		5,196		6,745		11,284
		c) Other operating income		220		224		199		639		635		818
		Total revenue from operations		72,368		69,026		67,898		208,973		183,545		246,697
	2	Other income		2,162		3,150		587		6,984		9,170		10,555
	3	Total income (1 + 2)		74,530		72,176		68,485		215,957		192,715		257,252
	4	Expenses
		a) Cost of materials consumed		11,412		9,559		12,891		33,939		31,470		42,198
		b) Purchase of stock-in-trade		12,083		11,378		9,160		32,232		26,004		33,670
		c) Changes in inventories of finished goods, work-in-progress and stock-in-trade		(1,735	)	(907	)	(2,037	)	(5,005	)	123		709
		d) Employee benefits expense		12,764		12,803		11,732		37,464		33,706		46,466
		e) Depreciation and amortisation expense		3,735		3,755		3,237		11,023		9,347		12,502
		f) Impairment of non-current assets		110		55		134		176		159		699
		g) Finance costs		394		353		418		1,118		1,074		1,428
		h) Selling and other expenses		17,503		16,055		16,633		49,164		43,933		59,465
		Total expenses		56,266		53,051		52,168		160,111		145,816		197,137
	5	Profit before tax and before share of equity accounted investees(3 - 4)		18,264		19,125		16,317		55,846		46,899		60,115

	6	Share of profit of equity accounted investees, net of tax		27		42		60		112		294		370
	7	Profit before tax (5+6)		18,291		19,167		16,377		55,958		47,193		60,485
	8	Tax expense/(benefit):
		a) Current tax		3,538		5,901		3,096		16,636		3,865		8,144
		b) Deferred tax		944		(1,556	)	842		(3,359	)	7,857		7,268
	9	Net profit after taxes and share of profit of associates (7 - 8)		13,809		14,822		12,439		42,681		35,471		45,073
	10	Other comprehensive income
		a) (i) Items that will not be reclassified subsequently to profit or loss		132		(222	)	(69	)	16		(743	)	(660	)
		(ii) Income tax relating to items that will not be reclassified to profit or loss		-		-		(31	)	-		(31	)	(43	)
		b) (i) Items that will be reclassified subsequently to profit or loss		782		(1,113	)	2,404		(184	)	(920	)	276
		(ii) Income tax relating to items that will be reclassified to profit or loss		78		201		(600	)	69		648		306
		Total other comprehensive income		992		(1,134	)	1,704		(99	)	(1,046	)	(121	)
	11	Total comprehensive income (9 + 10)		14,801		13,688		14,143		42,582		34,425		44,952
	12	Paid-up equity share capital (face value Rs. 5/- each)		834		834		833		834		833		833
	13	Other equity												232,028
	14	Earnings per equity share (face value Rs. 5/- each)
		Basic		82.94		89.09		74.91		256.57		213.68		271.47
		Diluted		82.81		88.91		74.76		256.08		213.23		270.90
				(Not annualised)		(Not annualised)		(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						Nine months ended				Year ended
			31.12.2023		30.09.2023		31.12.2022		31.12.2023		31.12.2022		31.03.2023
Sl. No.		Particulars	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Audited)
		Segment wise revenue and results:
	1	Segment revenue :
		a) Pharmaceutical Services and Active Ingredients		10,580		9,625		10,304		29,570		26,797		37,195
		b) Global Generics		63,124		61,130		59,276		184,384		159,656		213,953
		c) Others		1,215		683		702		2,491		2,195		3,126
		Total		74,919		71,438		70,282		216,445		188,648		254,274
		Less: Inter-segment revenue		2,551		2,412		2,384		7,472		5,103		7,577
		Total revenue from operations		72,368		69,026		67,898		208,973		183,545		246,697
	2	Segment results:
		Gross profit from each segment
		a) Pharmaceutical Services and Active Ingredients		2,307		1,260		1,413		4,580		2,763		4,733
		b) Global Generics		39,077		38,872		38,254		116,335		99,221		132,719
		c) Others		823		242		430		1,221		1,374		1,909
		Total		42,207		40,374		40,097		122,136		103,358		139,361
		Less: Selling and other un-allocable expenditure/(income), net		23,916		21,207		23,721		66,178		56,166		78,876
		Total profit before tax		18,291		19,167		16,377		55,958		47,193		60,485

Inter-segment revenue represents sales 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 30 January 2024. The Statutory Auditors have carried out a limited review on the unaudited consolidated financial results and issued an unmodified report thereon.

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

“Other income” for the nine months ended 31 December 2023 includes Rs.540 million recognised in April 2023, 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 quarter ended 30 September 2023 includes Rs.984 million recognised pursuant to settlement of product related litigation by the Company and its affiliates in the United Kingdom. This transaction pertains to the Company's Global Generics segment.

“Other income” for the year ended 31 March 2023 includes an amount of Rs.5,638 million (U.S.$71.39 discounted to present value), recognised in June 2022 towards the settlement of an ongoing litigation relating to launch of a product with Indivior Inc., Indivior UK Limited and Aquestive Therapeutics, Inc.

During the quarter and nine months ended 31 December 2023 , an amount of Rs.1,148 million and Rs.3,422 million, respectively and during quarter and nine months ended 31 December 2022, an amount of Rs.435 million and Rs.2,806 million, respectively, representing government grants has been accounted as a reduction from Cost of materials consumed.

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 recognised in December 2022, pursuant to agreement 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.

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. Reddy's Laboratories Limited


Place:	Hyderabad	G V Prasad
Date:	30 January 2024	Co-Chairman & Managing Director

EX-99.4 5 drr0560_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 and Year to Date 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 and nine months ended 31 December 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: 24213271BKEKYI4480.
Place: Visakhapatnam
Date: January 30, 2024

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. Reddy’s 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 AND NINE MONTHS ENDED 31 DECEMBER 2023

All amounts in Indian Rupees millions
			Quarter ended									Nine months ended						Year ended
			31.12.2023			30.09.2023			31.12.2022			31.12.2023			31.12.2022			31.03.2023
Sl. No.		Particulars	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Audited)
	1	Revenue from operations
		a) Net sales/income from operations		40,389			48,037			38,624			142,460			120,498			162,989
		b) License fees and service income		442			154			172			763			3,115			6,002
		c) Other operating income		199			196			180			567			472			634
		Total revenue from operations		41,030			48,387			38,976			143,790			124,085			169,625

	2	Other income		2,276			2,231			514			6,651			5,343			5,913

		Total income (1 + 2)		43,306			50,618			39,490			150,441			129,428			175,538

	3	Expenses
		a) Cost of materials consumed		8,187			7,512			8,659			23,838			23,073			31,614
		b) Purchase of stock-in-trade		5,569			4,992			4,874			14,403			14,101			17,793
		c) Changes in inventories of finished goods, work-in-progress and stock-in-trade		(651	)		(1,054	)		(1,281	)		(1,868	)		227			1,295
		d) Employee benefits expense		7,823			7,837			7,084			23,062			20,675			28,326
		e) Depreciation and amortisation expense		2,464			2,458			2,388			7,294			6,865			9,232
		f) Impairment of non-current assets		-			-			10			-			10			51
		g) Finance costs		56			58			28			159			143			169
		h) Selling and other expenses		13,539			12,809			12,879			39,032			35,040			48,398

		Total expenses		36,987			34,612			34,641			105,920			100,134			136,878

	4	Profit before tax (1 + 2 - 3)		6,319			16,006			4,849			44,521			29,294			38,660

	5	Tax expense/(benefit)
		a) Current tax		1,569			3,960			1,988			10,916			6,322			8,641
		b) Deferred tax		(2	)		120			(385	)		533			3,568			3,891

	6	Net profit for the period/year (4 - 5)		4,752			11,926			3,246			33,072			19,404			26,128

	7	Other comprehensive income
		a) (i) Items that will not be reclassified to profit or loss		(8	)		1			2			(6	)		3			89

		(ii) Income tax relating to items that will not be reclassified to profit or loss		-			-			(31	)		-			(31	)		(53	)

		b) (i) Items that will be reclassified to profit or loss		24			(802	)		1,296			(257	)		(2,278	)		(928	)

		(ii) Income tax relating to items that will be reclassified to profit or loss		(6	)		201			(551	)		65			697			358

		Total other comprehensive income		10			(600	)		716			(198	)		(1,609	)		(534	)

	8	Total comprehensive income (6 + 7)		4,762			11,326			3,962			32,874			17,795			25,594

	9	Paid-up equity share capital (face value Rs. 5/- each)		834			834			833			834			833			833

	10	Other equity																	203,909

	11	Earnings per equity share (face value Rs. 5/- each)
		Basic		28.55			71.68			19.54			198.81			116.88			157.37
		Diluted		28.50			71.54			19.50			198.43			116.63			157.03
				(Not annualised)			(Not annualised)			(Not annualised)			(Not annualised)			(Not annualised)

See accompanying notes to the financial results.

DR. REDDY'S LABORATORIES LIMITED

Segment information			All amounts in Indian Rupees millions
			Quarter ended									Nine months ended						Year ended
			31.12.2023			30.09.2023			31.12.2022			31.12.2023			31.12.2022			31.03.2023
Sl. No.		Particulars	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Audited)
		Segment wise revenue and results
	1	Segment revenue
		a) Pharmaceutical Services and Active Ingredients		7,658			6,357			6,357			20,900			18,785			27,896
		b) Global Generics		35,726			43,995			34,298			129,399			109,348			147,999
		c) Others		66			128			110			325			368			497
		Total		43,450			50,480			40,765			150,624			128,501			176,392

		Less: Inter-segment revenue		2,420			2,093			1,789			6,834			4,416			6,767
		Total revenue from operations		41,030			48,387			38,976			143,790			124,085			169,625

	2	Segment results
		Profit/(loss) before tax and interest from each segment
		a) Pharmaceutical Services and Active Ingredients		(397	)		(540	)		(671	)		(1,533	)		(1,822	)		(1,336	)
		b) Global Generics		6,832			16,174			7,498			45,498			37,662			46,716
		c) Others		198			108			(97	)		297			(103	)		(154	)
		Total		6,633			15,742			6,730			44,262			35,737			45,226

		Less: (i) Finance costs		56			58			28			159			143			169
		(ii) Other un-allocable expenditure/(income), net		258			(322	)		1,853			(418	)		6,300			6,397
		Total profit before tax		6,319			16,006			4,849			44,521			29,294			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. Reddy'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 30 January 2024. The Statutory Auditors have carried out a limited review on the unaudited standalone financial results and issued unmodified report thereon.

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

“Other income” for the nine months ended 31 December 2023 includes dividend income of Rs. 443 million declared by Kunshan Rotan Reddy Pharmaceutical Company Limited.

During the quarter and nine months ended 31 December 2023, an amount of Rs. 1,142 million and Rs. 3,405 million respectively and during the quarter and nine months ended 31 December 2022, an amount of Rs. 435 million and Rs. 2,806 million respectively, representing government grants has been accounted as a reduction from cost of material consumed.

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. Reddy's Laboratories Limited


Place:	Hyderabad	G V Prasad
Date:	30 January 2024	Co-Chairman & Managing Director