Good Health Can’t Wait.
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<strong>Good</strong> <strong>Health</strong> <strong>Can’t</strong> <strong>Wait</strong>.<br />
Dr. Reddy’s Laboratories Limited<br />
` 22,179 mn<br />
Net Profit in FY2015<br />
15%<br />
PAT margin<br />
sales of products with higher gross<br />
profit margins during the year.<br />
SELLING, GENERAL AND<br />
ADMINISTRATIVE EXPENSES (SG&A)<br />
SG&A expenses including amortization<br />
increased by 10% to ` 42,585 million<br />
in FY2015. The rise was primarily due<br />
to manpower expenses, sales and<br />
marketing costs and the impact of<br />
exchange rate fluctuations of the Indian<br />
rupee against multiple currencies in<br />
the markets in which we operate. SG&A<br />
accounted for 28.7% of sales in FY2015,<br />
which was 60 basis points lower than the<br />
previous year.<br />
R&D EXPENSES<br />
R&D expenses increased by 41%<br />
to ` 17,449 million in FY2015, and<br />
accounted for 11.8% of sales, versus<br />
9.4% in FY2014. This growth is in line<br />
with the Company’s efforts to focus<br />
on the development of a specialized<br />
pipeline consisting of niche and<br />
differentiated products.<br />
NET FINANCE INCOME<br />
Net finance income was ` 1,682 million in<br />
FY2015 versus ` 400 million in FY2014.<br />
INCOME TAX<br />
For FY2015, income tax expense was<br />
` 5,984 million, with an effective tax rate of<br />
21.2% — versus ` 5,094 million in FY2014<br />
and an effective tax rate of 19.1%.<br />
NET PROFIT<br />
Net profit increased by 3% to ` 22,179<br />
million in FY2015. This represents a PAT<br />
margin of 15% of revenues versus 16.3%<br />
in FY2014.<br />
LIQUIDITY AND CAPITAL RESOURCES<br />
Cash generated from operating activities<br />
in FY2015 was ` 25,033 million. Investing<br />
activities amounting to ` 22,904 million<br />
includes net investment in property,<br />
plant, equipment and intangibles to<br />
build capacity and capabilities for future<br />
business growth. Cash outflow from<br />
financing activities was ` 4,118 million.<br />
Table 3 gives the data on consolidated<br />
cash flows and Table 4 on consolidated<br />
working capital.<br />
DEBT-EQUITY<br />
In FY2015, long term borrowings,<br />
including the current and non-current<br />
portion, decreased by ` 2,866 million.<br />
Short-term borrowing rose by ` 1,250<br />
million. As on 31 March 2015, the<br />
TABLE 3 CONSOLIDATED CASH FLOW UNDER IFRS (` MILLION)<br />
PARTICULARS FY2015 FY2014<br />
Opening cash and cash equivalents 8,451 5,054<br />
Cash flows from<br />
(a) Operating activities 25,033 19,463<br />
(b) Investing activities (22,904) (16,620)<br />
(c) Financing activities (4,118) (217)<br />
Effect of exchange rate changes (1,068) 771<br />
Closing cash and cash equivalents 5,394 8,451<br />
TABLE 4 CONSOLIDATED WORKING CAPITAL (` MILLION)<br />
` 25,033 mn<br />
Cash generated from<br />
operating activities in FY2015<br />
29%<br />
year-on-year growth<br />
PARTICULARS<br />
AS ON<br />
31 MARCH 2015<br />
AS ON 31 MARCH<br />
2014<br />
CHANGE<br />
Accounts Receivable (A) 40,755 33,037 7,718<br />
Inventories (B) 25,529 23,992 1,537<br />
Trade Accounts Payable(C) 10,660 10,503 157<br />
Working Capital (A+B-C) 55,624 46,526 9,097<br />
Other Current Assets (D) 53,554 46,718 6,836<br />
Total Current Assets (A+B+D) 119,838 103,747 16,091<br />
Short and long term loans and<br />
borrowings, current portion (E)<br />
28,819 24,002 4,817<br />
Other Current Liabilities (F) 24,516 19,558 4,958<br />
Total Current Liabilities (C+E+F) 63,995 54,063 9,932<br />
50
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