Exhibit 99.3
THE SKYVIEW 10 18th Floor, “NORTH LOBBY” Survey No. 83/1, Raidurgam Hyderabed - 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
1. | We have reviewed the accompanying Statement of Unaudited Consolidated Financial Results for the quarter and half year ended September 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”). |
2. | 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. |
3. | 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.
4. | 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, Black ‘B’, 3rd floor, Kolkata 700 016
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) |
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 |
5. | 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: 23213271BGSEQU2517 | |
Place: Hyderabad | |
Date: October 27, 2023. |
Dr. Reddys Laboratories Ltd. 8-2-337, Road No. 3, Banjara Hills, Hyderabad - 500 034, Telangana, 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 HALF YEAR ENDED 30 SEPTEMBER 2023
All amounts in Indian Rupees millions
Quarter ended | Half year ended | Year ended | ||||||||||||||||||||||||
Sl. No. | Particulars | 30.09.2023 | 30.06.2023 | 30.09.2022 | 30.09.2023 | 30.09.2022 | 31.03.2023 | |||||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |||||||||||||||||||||
1 | Revenue from operations | |||||||||||||||||||||||||
a) Net sales/income from operations | 67,348 | 66,143 | 61,632 | 133,491 | 109,812 | 234,595 | ||||||||||||||||||||
b) License fees and service income | 1,454 | 1,241 | 1,425 | 2,695 | 5,399 | 11,284 | ||||||||||||||||||||
c) Other operating income | 224 | 195 | 261 | 419 | 436 | 818 | ||||||||||||||||||||
Total revenue from operations | 69,026 | 67,579 | 63,318 | 136,605 | 115,647 | 246,697 | ||||||||||||||||||||
2 | Other income | 3,150 | 1,740 | 408 | 4,890 | 8,825 | 10,555 | |||||||||||||||||||
3 | Total income (1 + 2) | 72,176 | 69,319 | 63,726 | 141,495 | 124,472 | 257,252 | |||||||||||||||||||
4 | Expenses | |||||||||||||||||||||||||
a) Cost of materials consumed | 9,559 | 12,968 | 6,688 | 22,527 | 18,579 | 42,198 | ||||||||||||||||||||
b) Purchase of stock-in-trade | 11,378 | 8,771 | 8,089 | 20,149 | 16,844 | 33,670 | ||||||||||||||||||||
c) Changes in inventories of finished goods, work-in-progress and stock-in-trade | (907 | ) | (2,363 | ) | 3,693 | (3,270 | ) | 2,160 | 709 | |||||||||||||||||
d) Employee benefits expense | 12,803 | 11,897 | 11,517 | 24,700 | 21,974 | 46,466 | ||||||||||||||||||||
e) Depreciation and amortisation expense | 3,755 | 3,533 | 3,092 | 7,288 | 6,110 | 12,502 | ||||||||||||||||||||
f) Impairment of non-current assets | 55 | 11 | 25 | 66 | 25 | 699 | ||||||||||||||||||||
g) Finance costs | 353 | 371 | 309 | 724 | 656 | 1,428 | ||||||||||||||||||||
h) Selling and other expenses | 16,055 | 15,674 | 14,317 | 31,729 | 27,542 | 59,465 | ||||||||||||||||||||
Total expenses | 53,051 | 50,862 | 47,730 | 103,913 | 93,890 | 197,137 | ||||||||||||||||||||
5 | Profit before tax and before share of equity accounted investees(3 - 4) | 19,125 | 18,457 | 15,996 | 37,582 | 30,582 | 60,115 | |||||||||||||||||||
6 | Share of profit of equity accounted investees, net of tax | 42 | 43 | 140 | 85 | 234 | 370 | |||||||||||||||||||
7 | Profit before tax (5+6) | 19,167 | 18,500 | 16,136 | 37,667 | 30,816 | 60,485 | |||||||||||||||||||
8 | Tax expense/(benefit): | |||||||||||||||||||||||||
a) Current tax | 5,901 | 7,197 | 3,674 | 13,098 | 769 | 8,144 | ||||||||||||||||||||
b) Deferred tax | (1,556 | ) | (2,747 | ) | 1,320 | (4,303 | ) | 7,015 | 7,268 | |||||||||||||||||
9 | Net profit after taxes and share of profit of associates (7 - 8) | 14,822 | 14,050 | 11,142 | 28,872 | 23,032 | 45,073 | |||||||||||||||||||
10 | Other comprehensive income | |||||||||||||||||||||||||
a) (i) Items that will not be reclassified subsequently to profit or loss | (222 | ) | 106 | (112 | ) | (116 | ) | (674 | ) | (660 | ) | |||||||||||||||
(ii) Income tax relating to items that will not be reclassified to profit or loss | - | - | - | - | - | (43 | ) | |||||||||||||||||||
b) (i) Items that will be reclassified subsequently to profit or loss | (1,113 | ) | 147 | (189 | ) | (966 | ) | (3,324 | ) | 276 | ||||||||||||||||
(ii) Income tax relating to items that will be reclassified to profit or loss | 201 | (210 | ) | (320 | ) | (9 | ) | 1,248 | 306 | |||||||||||||||||
Total other comprehensive (loss)/income | (1,134 | ) | 43 | (621 | ) | (1,091 | ) | (2,750 | ) | (121 | ) | |||||||||||||||
11 | Total comprehensive income (9 + 10) | 13,688 | 14,093 | 10,521 | 27,781 | 20,282 | 44,952 | |||||||||||||||||||
12 | Paid-up equity share capital (face value Rs. 5/- each) | 834 | 833 | 832 | 834 | 832 | 833 | |||||||||||||||||||
13 | Other equity | 232,028 | ||||||||||||||||||||||||
14 | Earnings per equity share (face value Rs. 5/- each) | |||||||||||||||||||||||||
Basic | 89.09 | 84.55 | 67.13 | 173.64 | 138.77 | 271.47 | ||||||||||||||||||||
Diluted | 88.91 | 84.36 | 66.98 | 173.27 | 138.47 | 270.90 | ||||||||||||||||||||
(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 | Half year ended | Year ended | ||||||||||||||||||||||||
Sl. No. | Particulars | 30.09.2023 | 30.06.2023 | 30.09.2022 | 30.09.2023 | 30.09.2022 | 31.03.2023 | |||||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |||||||||||||||||||||
Segment wise revenue and results: | ||||||||||||||||||||||||||
1 | Segment revenue : | |||||||||||||||||||||||||
a) Pharmaceutical Services and Active Ingredients | 9,625 | 9,365 | 8,230 | 18,990 | 16,493 | 37,195 | ||||||||||||||||||||
b) Global Generics | 61,130 | 60,130 | 56,009 | 121,260 | 100,380 | 213,953 | ||||||||||||||||||||
c) Others | 683 | 593 | 755 | 1,276 | 1,493 | 3,126 | ||||||||||||||||||||
Total | 71,438 | 70,088 | 64,994 | 141,526 | 118,366 | 254,274 | ||||||||||||||||||||
Less: Inter-segment revenue | 2,412 | 2,509 | 1,676 | 4,921 | 2,719 | 7,577 | ||||||||||||||||||||
Total revenue from operations | 69,026 | 67,579 | 63,318 | 136,605 | 115,647 | 246,697 | ||||||||||||||||||||
2 | Segment results: | |||||||||||||||||||||||||
Gross profit from each segment | ||||||||||||||||||||||||||
a) Pharmaceutical Services and Active Ingredients | 1,260 | 1,013 | 235 | 2,273 | 1,350 | 4,733 | ||||||||||||||||||||
b) Global Generics | 38,872 | 38,386 | 36,568 | 77,258 | 60,967 | 132,719 | ||||||||||||||||||||
c) Others | 242 | 156 | 447 | 398 | 944 | 1,909 | ||||||||||||||||||||
Total | 40,374 | 39,555 | 37,250 | 79,929 | 63,261 | 139,361 | ||||||||||||||||||||
Less: Selling and other un-allocable expenditure/(income), net | 21,207 | 21,055 | 21,114 | 42,262 | 32,445 | 78,876 | ||||||||||||||||||||
Total profit before tax | 19,167 | 18,500 | 16,136 | 37,667 | 30,816 | 60,485 |
Global Generics includes operations of Biologics business. 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:
1 | 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 27 October 2023. The Statutory Auditors have carried out a limited review on the unaudited consolidated financial results and issued an unmodified report thereon. |
2 | “Other income” for the quarter ended 30 September 2023 includes Rs.984 million recognized 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. |
3 | "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. |
4 | During the half year and quarter ended 30 September 2023, an amount of Rs.2,274 million and Rs.1,598 million, respectively, representing government grants has been accounted as a reduction from cost of revenues. |
5 | During the quarter ended 30 September 2022 Rs.1,933 million, representing government grants has been accounted as a reduction from cost of revenues. |
6 | 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; 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. |
7 | During the year 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. |
8 | 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. |
9 | 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 half year ended 30 September 2023 and year ended 31 March 2023. |
10 | "Other income" for the half year ended 30 September 2022 includes an amount of Rs.5,638 million (U.S.$71.39 million discounted to present value) towards the settlement of an ongoing litigation relating to launch of a product with Indivior Inc., Indivior UK Limited and Aquestive Therapeutics, Inc. |
11 | 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. |
Dr. Reddy's Laboratories Limited
12 | Consolidated Balance Sheet |
All amounts in Indian Rupees millions | ||||||||
As at | ||||||||
30.09.2023 | 31.03.2023 | |||||||
Particulars | (Unaudited) | (Audited) | ||||||
ASSETS | ||||||||
Non-current assets | ||||||||
Property, plant and equipment | 58,496 | 56,542 | ||||||
Capital work-in-progress | 11,514 | 9,752 | ||||||
Goodwill | 5,410 | 5,474 | ||||||
Other intangible assets | 36,384 | 30,175 | ||||||
Intangible assets under development | 609 | 549 | ||||||
Investment in equity accounted investees | 4,069 | 4,702 | ||||||
Financial assets | ||||||||
Investments | 1,855 | 660 | ||||||
Other financial assets | 738 | 727 | ||||||
Deferred tax assets, net | 10,732 | 7,052 | ||||||
Tax assets, net | 298 | 2,687 | ||||||
Other non-current assets | 592 | 276 | ||||||
Total non-current assets | 130,697 | 118,596 | ||||||
Current assets | ||||||||
Inventories | 56,592 | 48,670 | ||||||
Financial assets | ||||||||
Investments | 38,650 | 44,496 | ||||||
Trade receivables | 69,722 | 72,485 | ||||||
Derivative financial instruments | 731 | 1,232 | ||||||
Cash and cash equivalents | 13,539 | 5,779 | ||||||
Other bank balances | 15,740 | 11,523 | ||||||
Other financial assets | 4,582 | 4,950 | ||||||
Other current assets | 17,841 | 15,120 | ||||||
Total current assets | 217,397 | 204,255 | ||||||
TOTAL ASSETS | 348,094 | 322,851 | ||||||
EQUITY AND LIABILITIES | ||||||||
Equity | ||||||||
Equity share capital | 834 | 833 | ||||||
Other equity | 254,134 | 232,028 | ||||||
Total equity | 254,968 | 232,861 | ||||||
Liabilities | ||||||||
Non-current liabilities | ||||||||
Financial liabilities | ||||||||
Borrowings | 3,800 | - | ||||||
Lease liabilities | 2,243 | 1,278 | ||||||
Provisions | 194 | 199 | ||||||
Deferred tax liabilities, net | 100 | 760 | ||||||
Other non-current liabilities | 2,724 | 2,032 | ||||||
Total non-current liabilities | 9,061 | 4,269 | ||||||
Current liabilities | ||||||||
Financial liabilities | ||||||||
Borrowings | 5,851 | 11,190 | ||||||
Lease liabilities | 1,336 | 1,004 | ||||||
Trade payables | ||||||||
Total outstanding dues of micro enterprises and small enterprises | 89 | 83 | ||||||
Total outstanding dues of creditors other than micro enterprises and small enterprises | 27,163 | 22,601 | ||||||
Derivative financial instruments | 542 | 137 | ||||||
Other financial liabilities | 28,390 | 29,175 | ||||||
Liabilities for current tax, net | 3,985 | 2,143 | ||||||
Provisions | 6,305 | 6,525 | ||||||
Other current liabilities | 10,404 | 12,863 | ||||||
Total current liabilities | 84,065 | 85,721 | ||||||
TOTAL EQUITY AND LIABILITIES | 348,094 | 322,851 |
Dr. Reddy's Laboratories Limited
13 | Consolidated statement of cashflows |
All amounts in Indian Rupees millions | ||||||||
Half year ended | ||||||||
30.09.2023 | 30.09.2022 | |||||||
Particulars | (Unaudited) | (Unaudited) | ||||||
Cash flows from/(used in) operating activities : | ||||||||
Profit before tax | 37,667 | 30,816 | ||||||
Adjustments for: | ||||||||
Fair value changes and profit on sale of financial instruments measured at FVTPL**, net | (1,527 | ) | (78 | ) | ||||
Depreciation and amortisation expense | 7,288 | 6,110 | ||||||
Impairment of non-current assets | 66 | 25 | ||||||
Allowance for credit losses (on trade receivables and other advances) | 137 | 69 | ||||||
(Profit)/loss on sale or de-recognition of non-current assets, net | (445 | ) | 68 | |||||
Share of profit of equity accounted investees | (85 | ) | (234 | ) | ||||
Foreign exchange (gain), net | (1,179 | ) | (329 | ) | ||||
Interest income | (1,048 | ) | (433 | ) | ||||
Finance costs | 724 | 656 | ||||||
Equity settled share-based payment expense | 211 | 263 | ||||||
Inventories write-down | 1,418 | 2,732 | ||||||
Dividend income | - | - | * | |||||
Changes in operating assets and liabilities: | ||||||||
Trade and other receivables | 2,689 | (10,150 | ) | |||||
Inventories | (9,340 | ) | (890 | ) | ||||
Trade and other payables | 4,568 | (2,356 | ) | |||||
Other assets and other liabilities, net | (3,482 | ) | (5,693 | ) | ||||
Cash generated from operations | 37,662 | 20,576 | ||||||
Income tax paid, net | (8,486 | ) | (4,640 | ) | ||||
Net cash from operating activities | 29,176 | 15,936 | ||||||
Cash flows (used in)/from investing activities : | ||||||||
Expenditures on property, plant and equipment | (7,323 | ) | (5,816 | ) | ||||
Proceeds from sale of property, plant and equipment | 487 | 48 | ||||||
Expenditures on other intangible assets | (8,787 | ) | (6,203 | ) | ||||
Proceeds from sale of other intangible assets | 21 | - | ||||||
Purchase of investments | (70,008 | ) | (47,008 | ) | ||||
Proceeds from sale of investments | 71,815 | 59,395 | ||||||
Interest and dividend received | 597 | 394 | ||||||
Dividend received from equity accounted investees | 445 | - | ||||||
Net cash (used in)/from investing activities | (12,753 | ) | 810 | |||||
Cash flows (used in) financing activities : | ||||||||
Proceeds from issuance of equity shares (including treasury shares) | 765 | 66 | ||||||
Repayment of short-term borrowings, net | (1,054 | ) | (16,862 | ) | ||||
Repayment of long-term loans and borrowings | (3,800 | ) | - | |||||
Proceeds from long term borrowings | 3,800 | - | ||||||
Payment of principal portion of lease liabilities | (524 | ) | (499 | ) | ||||
Dividend paid | (6,648 | ) | (4,979 | ) | ||||
Interest paid | (1,051 | ) | (872 | ) | ||||
Net cash used in financing activities | (8,512 | ) | (23,146 | ) | ||||
Net increase/(decrease) in cash and cash equivalents | 7,911 | (6,400 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | (155 | ) | 641 | |||||
Cash and cash equivalents at the beginning of the period | 5,779 | 14,852 | ||||||
Cash and cash equivalents at the end of the period(1) | 13,535 | 9,093 |
* Rounded off to million.
** FVTPL (fair value through profit or loss)
(1) Adjusted for bank-overdraft of Rs. 4 million and Rs. 3 million for the half year ended 30 September 2023 and 30 September 2022, respectively.
14 | 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. |
By order of the Board | |||
For Dr. Reddy’s Laboratories Limited |
Place: Hyderabad | G V Prasad | ||
Date: 27 October 2023 | Co-Chairman & Managing Director |