Good Health Can’t Wait.

Statutory Reports • Management Discussion and Analysis Annual Report 2014 - 15
Global Generics (GG) includes
branded and unbranded
prescription and Over-The-Counter
(OTC) drug products business. It
also includes the operations of our
Biologics business.
Pharmaceutical Services and Active
Ingredients (PSAI) consists of Active
Pharmaceutical Ingredients (API)
and Custom Pharmaceutical Services
(CPS) businesses.
Proprietary Products comprises
Differentiated Formulations business,
New Chemical Entities (NCEs)
business and our dermatology
focused specialty business.
We have a strong presence in highly
regulated markets such as the United
States of America, the United Kingdom
and Germany, as well as in other key
markets such as India, Russia, Venezuela,
Romania, South Africa and certain
countries of the former Soviet Union.
Given below is a brief outline of the
businesses. Further details are to be found
in subsequent sections of this chapter.
GLOBAL GENERICS
Revenues from Global Generics
stood at ` 120.56 billion
registering a year-on-year growth
of 15% — driven largely by North
America, Venezuela and India.
Revenues from North America
stood at ` 64.72 billion registering
a year-on-year growth of 17%.
Growth was largely driven by
‘complex to make’ injectable
products launched during FY2014,
market share gains in some of the
key molecules and contribution
from new products. During the year,
Dr. Reddy’s launched 12 products
with Valganciclovir and Sirolimus
being the major products. FY2015
also saw 13 product filings in the
USA. Cumulatively, 68 Abbreviated
New Drug Applications (ANDAs)
are pending for approval from the
US Food and Drug Administration
(USFDA). Of these, 43 are Para IVs —
out of which Dr. Reddy’s believes 13
to have ‘First to File’ status.
Revenues from Emerging Markets
stood at ` 30.77 billion registering
a year-on-year growth of 13%.
Within Emerging Markets:
Revenue from Russia and other
CIS markets declined by 11%
to ` 17.71 billion, primarily due
KEY FINANCIAL HIGHLIGHTS, FY2015
REVENUE
` 148.19 bn
(US$ 2.38 bn)
GROSS PROFIT MARGIN
12%
2015 2014
57.6% vs 57.4%
EARNINGS BEFORE INTEREST, TAXES,
DEPRECIATION AND AMORTIZATION (EBITDA)
` 36.17 bn 9%
24% of revenue (US$ 580 mn)
PROFIT BEFORE TAX (PBT)
` 28.16 bn 6%
19% of revenue (US$ 452 mn)
PROFITS AFTER TAX (PAT)
` 22.18 bn 3%
15% of revenue (US$ 356 mn)
CASH AND CASH EQUIVALENTS (INCLUDING OTHER INVESTMENTS)
` 39.65 bn 18%
(US$ 636 mn)
All US dollar amounts based on the convenience translation rate of US$ 1 = ` 62.31
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