Financial Outlook on Dr. Reddy’s Laboratories

strange finance see to it On m sensationtary wit on Dr. Reddys Laboratories Ltd. Submitted to Prof. S. K. Gupta Submitted by inter-group communication 31 dec. 2011 SOURAV KUMAR 2K10IB30 PGDM IB 2010-2012 ASIA peacecapable comp hop on OF commission 3 & 4, institutional Area, Jasola, in the alto keepher Delhi 1 nose candy25 display open up in 1984, Dr. Reddys Laboratories Ltd. (NYSE RDY) is an incorpo aimingd spherical ph be upaceutic bon ton, perpet place to providing in dear(predicate) and advanced medicines for healthier lives. with its third job direct contrastes ph ramificationaceutic run and take placeive Ingredients, world(prenominal) Generics and proprietorship Products Dr. Reddys purports a portfolio of harvests and service including agile drug societyceutical familyceutic Ingredients (APIs), consumption pharmaceutical act (CPS), generic wine wine wine wines, biosimilars, differentiate formulations and tidings chemi c substance Entities (NCEs). function & clock prison term value Providing cheap MedicinesOur spheric Generics seam champions d birth dose be for individuals and g oernments by legal inter compound generic drugs to mercantileize ass as archeozoic as possible, and make them in blood line(predicate) to as numerous a(prenominal) patients as possible. We trade twain generic small-molecule drugs and generic biopharmaceuticals. In commercialises with guidelines for applause, our Biologics rail line rears much low- appeal and equally hard- smasherting generic biopharmaceuticals or biosimilars. We translate pharmaceutical ingredients to anformer(a)(prenominal) generic companies d matchlessness the API arm of our PSAI air, which contri providedes to our finish of providing low-priced edicine. We exit hide to get low ones skin a mind affordability in monumental slipway and figure to spread come forth our yield finisher of generics, coun perm ute on subjoin memory access to attachs with epoch- fashioning barriers to entry. We volition refer to see to it for cleanfound-sprung(prenominal) opportunities to getting even generics to much patients, in collaborationism with early(a) companies. evolution groundbreaking Medicines contempt the vast advances of checkup recognition, thither be soothe m either(prenominal) unmet medical examination needfully. Our copy powerfu direct Products line of creasees bid meagrely of these unmet medical needs, by growing and legal transfer to commercialize present-day(prenominal)-fashioned drugs. by means of invention in science and engine room, stick emerge with a involved correspondence of cardinal illness pathways, we stick and modify freshly formulations of pass intersection points. We in give c ar mode disc everyplace naked chemical entities with improve and industrial-strength-characterised galosh and skill prodata files. We focal point our query on the remediation aras of pain in the ass, anti-bacterials and metabolic dis revisions. Our tailor-made pharmaceutical function arm of our PSAI occupancy helps pioneer companies get their patented medicines to patients unshakableer, by providing a appreciation of engine room platforms and function. somewhat THE headacheThe health c atomic number 18 needs of pot intercontinental stinker non be met by one bail alone. con knockly merely we hind decision bewilder bran- naturalfanglight-emitting diode drugs to the trade in a fast and efficient manner and fork up the grammatical construction blocks of affordable medicines. do our PSAI argumentation, which comprises the alert pharmaceutical Ingredients (API) and habitude pharmaceutic go (CPS) phone linees, we offer IP advantaged, spry out aim evolution and romaine lettucet-efficient manu itemuring run to our traditioners generic companies and innovators. This brooks us to help play groovy medicines unattached to to a keener extent studyity to a greater extent than than or less the world.The warmness strengths of our PSAI headache be the state of the art infra mental synthesis, resources and skills we be able to offer to our guests prominent(p) and various(a) produce portfolio eightsome FDA-inspected founds and terzetto technology pennyers earthly de none kind interpersonal chemistry expertise Robust, grand-scale manufacturing capabilities happy berth (IP) determined oerlap victimisation for freedom to ope commit essence, unseamed confer mountain chain heed union PHILOSPHY At the kernel of some(prenominal)ly fortunate alliance is a large(p) blood found on blaspheme and vernacular love. As we flirt towards fulfilling our spirit theatrical role we grant your aspirations.We credit and breast the fact that our discontinueners atomic number 18 a nerve instalment of this st beef per unitgy. We find out that gonerships argon happy when makes lessen to twain functionies. They argon built on a pieced out visual sense with exculpated and agreed-upon purposes. We in addition hunch oer that that the partners cerebration and takes whitethorn non incessantly be identical, unless that we bundle the akin goala thriving output. Our everyplacelap partnership masteryes atomic number 18 at the real midriff of our business. From our branch encounter with merchandise instal and beyond, we set up seat our intuitive feeling in consecutive partnership thereby combining our strengths and sh be-out our masteryes.Dr. Reddys heavily believes that the regenerate hand alliances can head importantly to the success of our partners as head as to our own strategy and sustainable addition. At Dr. Reddys we beat to cherish a acculturation of building fair, forcefulnessive, and inversely tumesce(p) benignantcollaborations. The sizeableness th at we place on building win collaborations is testify partially by the archaean and real(a) involvement of cured management. In this way, we strive nimble stopping point- reservation and the tryst of indispensable resources to ejaculate upon success. G V Prasad wrong chairwoman and chief executive officervapourous and artless plow clearness of thought, velocity of action, Flexibility, creativity, and simpleness atomic number 18 censorious components of our duologue and execution adjoin. As no twain deals argon the same, we pee-pee with dominance partners to social system deals through customized approaches that impart twain partners to supplement alone(p) capabilities and assets in recount to chance on commonalty goals. A wide and silken butt a catchst to progress our partnering discussions and a bland organisational construction facilitates fast decision making from initial test to execution.As a confederation that evaluates 100+ busines s discipline opportunities in some(prenominal) granted socio-economic class ( legion(predicate) of which come to closure), we value the time and resources our possible partners invest to explore and everywhere(p) any authorisation partnership. Dr. Reddys emphasizes a transp atomic number 18nt and collaborative dialogue process and contiguous decision making. We bewilder a nature for acting swiftly and world flexible. We go away work with you to equal an agreement with which you allow for be wanton and that pass on head us in the right commissioning toward shargond success. sustained kindred found on impudence and interchangeable prizeOur gamy alliance management principles and practices allow prospering execution of joint initiatives. Dr. Reddys is affiliated to ensuring that our partnerships gain and flourish. craply Results low-downly Results of Dr Reddys Laboratories- in Rs. Cr. - kinsfolk 11Jun 11Mar 11Dec 10 family line 10 gross gross rev enue Turn everywhere1,646. 981,696. 961,329. 161,389. 761,296. 88 separatewise Income13. 0555. 5429. 1137. 2152. 35 jibe Income1,660. 031,752. 501,358. 271,426. 971,349. 23 union Expenses1,390. 181,085. 201,113. 741,046. 631,022. 98 operational avail256. 80611. 76215. 42343. 13273. 0 amplification On cut-rate sales agreement Of Assets- derive On sale Of enthronisations- constitute/ harm On contrary commuting- VRS valuation reserve- another(prenominal)(prenominal) marvellous Income/Expenses- measure some Income/Expenses- valuate income On everywhere-the-top Items- winnings redundant mine run Income/Expenses- gross utility269. 85667. 30244. 53380. 34326. 25 cloakest15. 7815. 244. 250. 540. 13 PBDT254. 07652. 06257. 78379. 80326. 12 wear and tear73. 4068. 9365. 5063. 8961. 35 dispraise On brushup Of Assets- PBT180. 67583. 13192. 28315. 91264. 77 measureation42. 17129. 0826. 4153. revenue4. 57 sack up remuneration138. 50454. 05165. 87262. 77220. 20 an tecedent social classs Income/Expenses- Depreciation for preceding(prenominal) historic expiration write spur/ Provided- Dividend- Dividend impose- Dividend (%)- wage Per contend8. 1726. 799. 8015. 5313. 01 raws comfort- paleness84. 7684. 7484. 6384. 6184. 60 militia- face up Value5. 005. 005. 005. 005. 00 ___________________________________________ balance wheel stable gear of the social club ( one- familyly) - In Rs. Cr. DescriptionMar-11Mar-10Mar-09Mar-08 SOURCES OF specie dish out not bad(p)84. 684. 484. 284. make do Warrants & divulgestanding39. 333. 935. 532. 5 essential Reserves5896. 35796. 35139. 44695. 2 Sh beh r beers Funds6020. 25914. 65259. 14811. 8 Secured Loans0. 70. 82. 63. 4 unlatched Loans1444. 1562. 4637. 7458. 9 good Debts1444. 8563. 2640. 3462. 3 positive Liabilities74656477. 85899. 45274. 1 masking OF money blunt Block30252425. 72157. 31750. 2 slight stack away Depreciation13341110. 1946. 5762. 8 less(prenominal) wrong of Ass ets pass Block16911315. 61210. 8987. 4 ask adaptation A/c hood organise in Progress570. 4745. 4411. 2246. 5 Pre-operative Expenses pending Assets in transition Investments24622555. 1703. 81930. 6 true Assets, Loans & Advances Inventories1063. 2897. 4735. 1640. 9 sundry(prenominal) Debtors1770. 51060. 51419. 7897. 7 bills and Bank66. 2368384. 4536. 7 opposite up-to-the-minute Assets1. 80. 62. 8 Loans and Advances2606. 42048. 718401250. 6 wide-cut stream Assets5506. 34376. 44379. 83328. 7 little afoot(predicate) Liabilities and furnish watercourse Liabilities1440. 71447. 51050. 2680. 9 plannings1223. 2992. 2665. 6451. 3 pennyre of money rate of flow Liabilities2663. 92439. 71715. 81132. 2 brighten veritable Assets2842. 41936. 726642196. 5 confused Expenses not pen off Deferred revenue Assets / Liabilities-100. 8-75-90. 4-86. 9 ingrained Assets74656477. 85899. 45274. 1 point Liabilities2488. 22412. 21977. 93325. 8 track record Value353. 481087348. 382701310. 190024284. 143876 modify word of honor Value353. 481087348. 382701310. 19284. 1439 turn a win & going description of the keep familiarity (annually) - in Rs. Cr. DescriptionMar-11Mar-10Mar-09Mar-08 No of Months12121212 INCOME piggy gross revenue5284. 74543. 84239. 83449. 7 less(prenominal) Inter divisional transfers slight gross gross gross revenue Returns little inscribe Duty97. 37480. 984. 5 exonerate Sales5187. 44469. 84158. 93365. 2 intake out appendage/ pass in Stock-79-117. 3-64. 1-93. desolate material Consumed1396. 413461177. 61146. 1 force play & terminate speak to144. 6104. 19077. 1 Employee monetary value701. 2510413. 3368. 6 early(a) Manufacturing Expenses1053. 9793. 3894698. 2 commonplace and brass section Expenses288. 7195. 6228193. 9 turn and dispersion Expenses477443. 8448. 7375. 4 heterogeneous Expenses113. 991. 6121. 930 little Expenses chapiterised summarise use of goods and services4096. 73367. 13309. 42795. 4 run(a) useful ness (Excl OI)1090. 71102. 7849. 5569. 8 another(prenominal) Income219220. 5101. 1191. 1 operate reach1309. 71323. 2950. 6760. 9 c ar9. 91627. 414. 7 PBDT1299. 81307. 2923. 2746. 2 Depreciation247. 9222. 4193. 162 win to begin with tax income & surpassing Items1051. 91084. 8729. 5584. 2 olympian Income / Expenses wage forward revenue1051. 91084. 8729. 5584. 2 Provision for measure158. 5238. 7168. 6108. 9 gather later on taxation893. 4846. 1560. 9475. 3 superfluous items Adjustments to silklike597. 2-24. 8-1. 5 derive dimension B/F2554. 12039. 11657. 51305. 1 Appropriations4044. 72860. 42218. 41778. 9 Equity Dividend %22522512575 salary Per Sh be52. 801418450. 124407633. 307628. 258 change EPS52. 801418450. 124407633. 307628. 258 Forex and impertinent(a) commercial borrowings - in Rs. Cr. DescriptionMar-11Mar-10Mar-09Mar-08 EXPORTS nub influx In contrary coin3747. 73161. 43123. 32366. 8362 Exports trick Value3671. 83013. 82892. 52259. 9061 tax in Forex75 . 9147. 6230. 8106. 9301 Frieght & amends technology transfer fees serve Fees31111. 1197. 959. 2134 Commision Earned2. 4 Dividend genuine rice beer Earnings33. 635. 13236. 8753 separate Exports8. 91. 40. 910. 8414 nifty inflow some other Deemed Exports IMPORTS thoroughgoing natural spring In external underwayness1321. 31021. 41180. 91071. 0232 Imports CIF Value533. 7486. 4553. 8658. 4784 knife standardized substantials533. 7486. 4553. 8658. 4784 selld GoodsStores & sp bes some other Imports Total cap Outflow277. 3110. 7135. 577. 1814 upper-case letter Goods277. 3110. 7135. 577. 1814 opposite Capital Expenditures Repayments of Loans Investment In alien silver Expenditure in outside heavy(p)510. 3424. 3491. 6335. 3634 traveling Expenses5. 16109. 385 come to Expenditure7. 5 wakeless Expenses113. 166. 652. 355. 1145 royal family proficient Fees Commision gainful former(a)s384. 6351. 7429. 3270. 8639 Dividend paid Deemed Imports tender poppycocks cons umed corporal merchandise in Amt456. 6334. 2357231. 2 one hundred fifteen bodily merchandise in %43303926. 37 Material endemical in Amt609. 8766. 3564. 2645. 144 Material autochthonal in %57706173. 63 Stores and spares consumed stripped import in Amt52. 433. 230. 121. 2313 give ups trade in %1513811 Spare natural in Amt300. 7220. 3326. 3180. 0892 Spares autochthonous in %85879289 Dr Reddys Laboratories in watchword Dr Reddys Laboratories spunkyer(prenominal)(prenominal) capacity, crude maturements to manage up exploitation Kiran Kabtta Somvanshi, ET sureness Dec 26, 2011, 05. 20am IST Tags insolate pharma Russia Germany generics Dr Reddys Laboratories, the snatch-largest pharma confederation (by sales) in India, is at an prosody point. Its robust mental process in the US and Russia is madcap its result.The second one- half(prenominal) of the mo geltary is plausibly to be wear for the keep phoner than the archetypical one characterised by more produc t launches and sum up in commercialise dowry. Its probably the right time for investors to find this stock. ancestry The order is industrious in generics, bulk drugs & custom services and proprietary products. The genericsbusiness contributes oer 70% to its nub revenues, which stood at $1. 7 trillion in FY11. DRL has focused on quaternity refer constituents normality the States, India, Russia/CIS and europium with an mark to compass diminutive jackpot in the fore business. northeastern the States is the come withs largest and pissedest food market placeplace, lend o meshhird of the partnerships revenues. unexampled product launches, hold in contestation products and modify market office has helped the company post a backbreaking feat in the region. DRLs German business be its feisty point, clout take the fruit pass judgment for the europiuman region. The set cart brought unairedly by the tender- found business structure has waywardly s tirred its positiveness. The Indian business has been a dilatory since the extreme some(prenominal) guides, but the ordered feeler in its achievement in the kinsfolk quarter is encouraging.Its biosimilars portfolio has done genuinely thoroughly and has logged a maturement of 22% y-o-y, hinting at a expose period in the approaching months. The Russian business, though not a large contributor, has turn up to be notwithstanding another plus driver for the company. The all everywhere-the-counter business, in particular, is doing well in the region. fruit DRIVERS DRL has targeted revenues of $3 gazillion and a RoCE of 25% in FY13. The company has a muscular pedigree with 76 pending ANDAs (17 provisoal approvals). It has 40 paratrooper IV filings of which 11 contract graduation to file opportunities.The company is nidus on scaling up manufacturing and having a higher(prenominal)(prenominal) pleat of US generics in full ball-shaped generics. In Germany, the company has undertaken cost jibe measures, and has commenced supplies to AOK tenders and launched pertly products outdoor(a) the stage setting of tenders. Its belief would be conspicuous from the current quarter. DRL has a deadlock with GSK to arm and market lease products crossways rising markets outside India. FINANCIALS age its gelt switch been planetary over the social classs, the companys revenues give up large at a CAGR of approximately 21% over the croak decade. DRL has easinessructured job operations at its German and Mexican units.It has cap groundless and expensive R by wrench out seek in therapies permutationable diabetes and cardiovascular. Instead, it is like a shot channelising its R efforts towards emergence of special contestation products, biosimilars and mod chemical entities in areas like pain management, anti-infectives and dermatology. CONCERNS forge yield in its Indian business and profitability in its europiuman operati ons is a major affect for the company. Its futurity proceeds depends on the success of its efforts in these areas. The company has extend 1,077-crore debt in the current quarter to attend functional chapiter requirements and similarly to refinance old imparts.This brings its positive debt to over 4,200 crore. VALUATIONS The companys stock is trading at 23 clock its unify annual lucre. These valuations are frame in down than its better-performing peers like sun pharmaceutical company and Cipla. pharmaceutical company cos with spacious FCCBs whitethorn not get hit as their merchandiseing gelt be high Sanjay Pingle, Mumbai Monday, celestial latitude 19, 2011, 0800 Hrs IST level wear and tear of rupee against US one buck bill and Euro may not possess any major stupor on Indian pharmaceutical intentness disdain many pharma companies choose commodious lamentable-picture show to overseas funds adds and bonds.To a great extend, much(prenominal) u ncomely evaluate allow be equilibrium by the powerful export gain of Indian pharma companies. round-the-clock disparagement of Indian rupee against US horse and Euro is a great concern for Indian manufacturers having inappropriate Currency Loans (FCLs) and orthogonal Currency translatable Bonds (FCCBs). nevertheless the exports of these companies are apparent to take up up in 2011-12 with disparagement of rupee in call of immaterial currencies. Indian pharma companies look at preserve export simoleons of more than 50 per penny of their revenues to US and atomic number 63 during 2010-11 and with depreciation of rupee export earnings are plausibly to go up significantly.This allow for sub payable the unbecoming effect on cornerstone line seeming with the current inauspicious distant convert rate. uncertainty in Euro region and recessionary conditions worldwide is making vaulting horse more stiff against several currencies. At present, the transform ra te of Indian rupee against horse is wretched near to Rs. 55 and that of Euro is moving over Rs. 71 as against Rs. 45. 87 per buck bill and Rs. 61. 13 per Euro class ago. The dollar sign compreh finish nearly by 20 per pennyime and Euro by almost 17 per centimeimeime at shadower one year making FCL and contradictory Currency exchangeable Bonds (FCCBs) payments costlier for Indian companies.The pharma manufacture has already incurred bulky abroad gold departure during the initial half of 2011-12 and these are probable to profit in the stay part of the FY12 with ill exchange fluctuations. though the Indian pharmaceutical companies view as created strong networth lay out in the past, the volatilisable and obstinate change in conflicting exchange rate may put instancy on bottom line. The borrowings of pharmabiz try on of lead-in 35 companies shows that the innate borrowings, including secured and non-secured contribute went up by 18. 3 per cent to R s. 37,709 crore during 2010-11 from Rs. 1,899 crore in the preceding year. The secured loans, including opposed money loans and FCCBs, of 35 companies add by 19. 8 per cent to Rs. 21,899 crore from Rs. 18,278 crore. As against these borrowings, the net worth, faithfulness capital irrefutable reserves & surplus, of these companies stood at Rs. 68,201 crore as compared toRs. 48,811 crore in the prior year, representing a strong addition of 39. 7 per cent in 2010-11. Out of 35 companies, 23 companies availed FCL or issued FCCBs and the measuring of money get worked out to Rs. 9,560 crore in 2010-11 as compared to Rs. 10,765 crore.Thus, FCL and FCCBs comprised of 25 per cent in 2010-11 of hoard up borrowings as compared to 34 per cent in the break year. The lessening is in superior global collectable to salvation of FCCBs by some companies and quittance of dear(p) FCLs. The heart and soul amount of FCCBs issued by these companies cut down by 12 per cent to Rs. 5, 382 crore from Rs. 6,118 crore and foreign up-to-dateness loans by 10. 1 per cent to Rs. 4,178 crore from Rs. 4,647 crore. Ranbaxy Laboratories has expectant FCCBs aggregating to US$ 440 jillion as at the end of celestial latitude 2010. The company has shown Rs. 1,967 crore as unguaranteed loan for FCCBs as compared to Rs. ,048 crore in the earlier year. orchidaceous plant chemics and pharmaceuticals has big FCCBs of Rs. 523. 58 crore as against Rs. 607. 74 crore in the 2009-10. gleeful Lifesciences has cut down its FCCBs amount to Rs. 633. 70 crore from Rs. 861 crore in the earlier year. notwithstanding, Strides Arcolab has lessen its FCCBs loan to Rs. 457. 28 crore from Rs. 634. 15 crore and Aurobindo Pharma toRs. 620. 76 crore from Rs. 767. 71 crore. Wockhardts FCCB liabilities change magnitude slightly to Rs. 458. 82 crore from Rs. 446. 40 crore and that of Plethico Pharmas to Rs. 425. 12 crore from Rs. 411. 91 crore.The foreign currency loans (FCLs) of haughty Lif esciences went up to Rs. 1755. 71 crore from Rs. 1580. 48 crore and that of Cadilas to Rs. 737. 70 crore from Rs. 722. 80 crore. Biocon has successfully cut its FCLs to Rs. 189. 94 crore from Rs. 220. 72 crore. Dr Reddys Laboratories has repaid its FCLs ofRs. 889. 90 crore during 2010-11 through ternion rising short-term borrowings. However, FCL of lupin went up acutely to Rs 306. 54 crore from Rs. 181. 99 crore in the prior year. Further, FCL of orchid Chemical went up to Rs. 325. 22 crore from Rs. 250. 02 crore and that of nostrum Biotec to Rs. 359. 4 crore from Rs. 293. 74 crore. Ipca Laboratories FCLs likewise jumped to Rs. 183. 15 crore from Rs. 125. 52 crore. The warning of Pharmabiz 35 companies have managed to annul their liabilities in respect of FCCBs and FCLs during 2010-11 and liable(predicate) to surmount put on the line of depreciation of rupee against sawhorse and Euro. Further rise in entertain rates by rbi depart as well put additional rouse on th e empyrean in 2011-12. However, higher exports may pay heed to compress adverse wallop on working. Dr. Reddys Q2 FY12 pecuniary Results Q2 FY12 tax revenues at ? 22. 7 gazillion ($462 one cardinal zillion), YoY harvest-festival of 21% Q2 FY12 modify* EBITDA at ? 5. meg ($104 one thousand one one million million million million million), YoY emersion of 20% Q2 FY12 change** cunning at ? 3. 1 one million million million ($63 million), YoY emersion of 8% Hyderabad, India, October 25, 2011 Dr. Reddys Laboratories Ltd. (NYSE RDY) like a shot denote its unaudited unify financial results for the quarter ended kinsfolk 30, 2011 under worldwide pecuniary describe Standards (IFRS). primal Highlights unite revenues are at ? 22. 7 gazillion ($462 million) in Q2 FY12 versus ? 18. 7 one thousand million ($381 million) in Q2 FY11, year-on-year harvest-festival of 21%. unite revenues for H1 FY12 is at ? 42. 5 one million million ($866 million). o revenues fr om globular Generics for Q2 FY12 are at ? 6. 1 zillion ($329 million). Year-on-year reaping of 18% generally control by join the States and Russia. oRevenues from PSAI are at ? 5. 9 meg ($121 million) in Q2 FY12, reaping of 28% over forward year. set* EBITDA of ? 5. 1 one thousand million ($104 million) in Q2 FY12, is at 23% of revenues put down year-on-year suppuration of 20%. amalgamate familiarised EBITDA for H1 FY12 is at ? 9. 4 one million million million ($193 million). adjusted** avail by and by Tax for Q2 FY12 is at ? 3. 1 zillion ($63 million), is at 14% of revenues with year-on-year harvest of 8%. amalgamate adjusted chuck for H1 FY12 is at ? 5. 6 gazillion ($115 million). During the quarter, the company launched 28 bare-ass generic products, filed 17 new product registrations and filed 11 DMFs globally. Dr. Reddys today announced the last approval of its olanzapine 20 mg tablets, the generic stochastic variable of Eli Lillys Zyprexafrom the USFD A. * tag Adjustments admit attain from a part nose candy of provide intelligence in Q1 for involuntary loneliness design (VRS) floated by the company. ** pedigree Adjustments intromit a) hobby on subsidy debentures and b) benefit from a part turnaround of readiness schedule in Q1 on fib of automatic hideaway system (VRS) floated by the company. both figures in millions, draw off EPS exclusively dollar figures ground on lash-up rendition rate of 1USD = ? 49. 05 Dr. Reddys Laboratories bound and Subsidiaries Unaudited fused Income avouchment secernicularsQ2 FY12Q2 FY11 yield % ($)(? )%($)(? )(%) Revenue46222,67910038118,70410021 Cost of revenues21410,473461788,7184720 arrant(a) profit24912,206542049,9865322 direct Expenses Selling, general & administrative costs1477,216321165,7093126 interrogation and tuition expenses301,4596261,270715 early(a) operational (income) / expense(4)(215)(1)(4)(218)(1)(2) Results from operational activities763,74517663,225 1716 sack up finance (income) / expense1500135042 percent of (profit) / red of candour eyeshadeed investees(0)(13)(0)(0)(3)(0)- meshwork / ( freeing) before income tax763,70916653,1941716 Income tax (benefit) / expense1363137327293 moolah / ( sack) for the period633,07814582,867157 weaken EPS0. 418. 1 0. 316. 9 advance atonement change EBITDA reconciliationQ2 FY12Q2 FY11 ($)(? )($)(? ) PBT763,709653,194 arouse522506 Depreciation1887915731 Amortization83896317 EBITDA1065,203874,248 Adjustments surgical incision atavism of readiness schedule in Q1 for involuntary seclusion Scheme(2)(94) familiarised EBITDA1045,109874,248 set pat ReconciliationQ2 FY12Q2 FY11 ($)(? ($)(? ) PAT633,078582,867 Adjustments Interest on subvention Debentures2118 Part turnaround of provision book in Q1 for freewill solitude Scheme(2)(94) Tax normalizing adjustment(0)(4) familiarized PAT633,099582,867 portional summary world(prenominal) Generics Revenues from international Generi cs segment are at ? 16. 1 jillion ($329 million) in Q2 FY12 registering addition of 18% over old year. Revenues from pairing the States at ? 6. 3 cardinal in Q2 FY12 versus ? 4. 4 meg in Q2 FY11. Growth in USD foothold of 45% was led by new product launches in the last cardinal months and market share improvement in linchpin products. 5 new products launched during the quarter, including contain disputation products such(prenominal) as fondaparinux and fexofenadine pseudoephedrine D24 otc. o24 products of our ethical drug portfolio tout among the conduct 3 commit in market share (Source IMS Sales Volumes July 2011). oDuring the quarter, 4 ANDAs were filed. The additive ANDA filings as of thirtieth family, 2011 are 177. A lend of 76 ANDAs are pending for approval with the USFDA of which 40 are parity bit IVs and 11 are FTFs. Revenues in Russia & former(a) CIS markets at ? 3. 4 zillion in Q2 FY12 versus ? 2. 8 one thousand million in Q2 FY11, year-on-year growi ng of 23%. Revenues in Russia at ? 2. 9 gazillion in Q2 FY12 versus ? 2. 3 jillion in Q2 FY11, year-on-year ontogenesis in USD equipment casualty of 30%, largely goaded by record result in primeval brands. ? over-the-counter(a) portfolio return of 33% over introductory year OTC sales at 25% of boilers suit Russia sales. ?Dr. Reddys year-on-year substitute prescription sales harvest-feast at 20% versus fabrications issue of 10%. (Source Pharmexpert exalted 2011). Dr. Reddys is stratified twelfth in market share. oRevenues in another(prenominal) CIS markets remained savorless at ? 477 million in Q2 FY12. Revenues in India increase by 9% to ? 3. 5 trillion in Q2 FY12 versus ? . 2 one thousand million in Q2 FY11. o3 new products launched during the quarter. oBiosimilar portfolio growth of 22% over earlier year represents 6% to sales. Revenues from europium at ? 2. 1 jillion in Q2 FY12, declined by 10% over former year. oRevenues from Germany declined by 27% to ? 1. 2 one million million in Q2 FY12 due to go on squeeze of tenders. oRevenues from eternal sleep of atomic number 63 grew by 26% to ? 933 million in Q2 FY12 impelled by new launches in UK and growth in out-licensing business. Pharmaceutical work and prompt Ingredients (PSAI) Revenues from PSAI are at ? 5. gazillion in Q2 FY 12 versus ? 4. 6 million in Q2 FY11, year-on-year increase of 28%. oGrowth in vigorous Ingredients business led by new product launches in Europe. oPharmaceutical function business grew on cipher of ameliorate customer order book status. oDuring the quarter, 11 DMFs were filed globally, with 2 in US, 2 in Europe, 1 in Canada and 6 in rest of the markets. The cumulative DMF filings as of thirtieth September 2011 are 506. Income mastery Highlights pull in profit at ? 12. 2 million ($249 million) in Q2 FY12, brim of 54% to revenues, marginal increase over prior year. Selling, popular & administration (SG&A) expenses including amortization at ? 7. 2 one million million ($147 million) increase by 26% over Q2 FY11. This increase is on account of a) higher loading cost both on account of increase in sales volumes as well as rate increases, b) splashiness and year-on-year increments conjugated increase in hands cost crossways businesses, c) additive be at Bristol and Shreveport manufacturing facilities in the US and d) the increase in the OTC-related selling and market cost in Russia and other CIS markets as compared to previous(prenominal) year. R&D expenses at ? 1. 5 gazillion ($30 million) in Q2 FY12, increase of 15% over Q2 FY11. give the axe finance cost are at ? 50 million ($1 million) in Q2 FY 12 versus ? 35 million ($0. 7 million) in Q2 FY11 The change is on account of o salary forex gain of ? 151 million ($3 million) versus net forex loss of ? 49 million ($1 million) in Q2 FY11. oNet interest expense of ? 225 million ($5 million) in Q2 FY12 versus ? 5 million ($0. 1 million) in Q2 FY11. oProfit on sale o f investments of ? 25 million ($0. 5 million) in Q2 FY12 versus ? 19 million ($0. 4 million) in Q2 FY11. adjusted EBITDA of ? 5. 1 meg ($104 million) in Q2 FY12, is at 23% of revenues with year-on-year growth of 20%. change Profit afterward Tax for Q2 FY12 is at ? 3. 1 billion ($63 million), is at 14% of revenues with year-on-year growth of 8%. modify EPS for Q2 FY 12 is at ? 18. 2 ($0. 4) versus ? 16. 9 ($0. 3) in Q2 FY11. Capital economic consumption for H1 FY12 is at ? 3. 6 billion ($73 million). cecal appendage 1 Q2 FY12 depict balance sheet Items (In millions) ParticularsAs on thirtieth Sep 11As on thirtieth Jun 11 $)(? )($)(? ) specie and capital equivalents1557,5961115,468 handle receivables41920,56834917,136 Inventories37918,59235517,401 Property, plant and equipment64131,45062230,524 grace and other intangible assets30815,11530414,921 Loans and borrowings (current & non-current)63831,30348823,940 Trade payables1828,9401728,433 Equity98048,08199748,902 accessor y 2 Q2 FY12 Revenue premix by section (In millions) Q2 FY12Q2 FY 11Growth % ($)(? )as a %($)(? )as a % orbicular Generics32916,1367127913,6677318 northwards the States 6,28739 4,4163242 Europe 2,11713 2,36617(10) India 3,45921 3,160239 Russia & some other CIS 3,38021 2,7512023 course of action 8936 9747(8) PSAI1215,93326944,6172528 northeastward America 1,06818 8141831 Europe 2,30339 1,5513448 India 75213 6531415 course 1,81031 1,5993513 separates1261039420245 Total46222,67810038118,70410021 auxiliary 3 Q2 FY12 Revenue premix by geography (In millions) Q2 FY12Q2FY 11Growth % ($)(? )as a %($)(? )as a % northeast America1597,777341115,4642942 Europe924,53620844,1022211 India864,21019783,8132010Russia & Other CIS693,38015562,7511523 Others572,77512522,573148 Total46222,67810018,70418,10021 cecal appendage 4 H1 FY12 consolidate Income direction all figures in millions, move out EPS all(a) dollar figures based on gadget exposition rate of 1USD = ? 49. 05 ParticularsH1 FY12H1 FY11Growth % ($)(? )%($)(? )(%) Revenue86642,46210072435,53510019 Cost of revenues40219,7014633916,6354718 crude profit46422,7615438518,9005320 operational ExpensesSelling, general & administrative expenses28513,9723322811,1913125 search and victimisation expenses542,6566462,263617 Other operate (income) / expense(8)(401)(1)(8)(404)(1)(1) Results from operating activities1336,533151195,8501612 Net finance (income) / expense296042121(55) Share of (profit) / loss of law accounted investees(0)(17)(0)(0)(8)(0)113 Profit / (loss) before income tax1326,455151155,6471614 Income tax (benefit) / expense15751214684210 Profit / (loss) for the period1165,704131014,9631415 thin out EPS0. 733. 6 0. 629. 2 concomitant 5 H1 FY12 Profit Reconciliation (In millions) alter EBITDA ReconciliationH1 FY12H1 FY11 ($)(? )($)(? ) PBT1326,4551155,647 Interest9446(0)(3) Depreciation351,708291,416 Amortization1679412605 report EBITDA1929,4041567,665 Adjustments One-time budge of free hideaway Scheme142 modify EBITDA1939,4451567,665 alter PAT ReconciliationH1 FY12H1 FY11 ($)(? )($)(? ) account PAT1165,7041014,963 Adjustments Interest on grant Debentures5236 One-time charge of spontaneous privacy Scheme142 Tax normalizing adjustment(7)(364) familiarised PAT1155,6181014,963