Dr. Reddy's Laboratories Limited (RDY) 6-K Current report (foreign)

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

1. We have reviewed the accompanying Statement of Unaudited Consolidated Financial Results for the Quarter and Half Year ended 30 September, 2024 (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 associates 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”).

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 Master Circular 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 Discovery Technologies (Malaysia) Sdn. Bhd.

2. Aurigene Oncology Limited (Formerly, Aurigene Discovery Technologies Limited)

3. Aurigene Pharmaceutical Services Limited

4. beta Institut gemeinnützige GmbH

5. betapharm Arzneimittel GmbH

6. Cheminor Investments Limited

7. Chirotech Technology Limited (Liquidated)

8. Dr. Reddy’s Farmaceutica Do Brasil Ltda.

9. Dr. Reddy’s Laboratories (EU) Limited

10. Dr. Reddy’s Laboratories (Proprietary) Limited

11. Dr. Reddy’s Laboratories (UK) Limited

12. Dr. Reddy’s Laboratories Canada, Inc.

13. Dr. Reddy’s Laboratories Chile SPA.

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 

14. Dr. Reddy’s Laboratories Inc.

15. Dr. Reddy’s Laboratories Japan KK

16. Dr. Reddy’s Laboratories Kazakhstan LLP

17. Dr. Reddy’s Laboratories Louisiana LLC

18. Dr. Reddy’s Laboratories Malaysia Sdn. Bhd.

19. Dr. Reddy’s Laboratories New York, LLC

20. Dr. Reddy’s Laboratories Philippines Inc.

21. Dr. Reddy’s Laboratories Romania Srl

22. Dr. Reddy’s Laboratories SA

23. Dr. Reddy’s Laboratories Taiwan Limited

24. Dr. Reddy’s Laboratories (Thailand) Limited

25. Dr. Reddy’s Laboratories LLC, Ukraine

26. Dr. Reddy’s New Zealand Limited.

27. Dr. Reddy’s Srl

28. Dr. Reddy’s Bio-Sciences Limited

29. Dr. Reddy’s Laboratories (Australia) Pty. Limited

30. Dr. Reddy’s Laboratories SAS

31. Dr. Reddy’s Research and Development B.V.

32. Dr. Reddy’s Venezuela, C.A. (till April 17, 2024)

33. Dr. Reddy’s (Beijing) Pharmaceutical Co. Limited

34. DRL Impex Limited

35. Dr. Reddy’s Formulations Limited

36. Idea2Enterprises (India) Pvt. Limited

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

38. Industrias Quimicas Falcon de Mexico, S.A. de CV

39. Lacock Holdings Limited

40. Dr. Reddy’s Laboratories LLC, Russia

41. Promius Pharma LLC

42. Reddy Holding GmbH

43. Reddy Netherlands B.V.

44. Reddy Pharma Iberia SAU

45. Reddy Pharma Italia S.R.L.

46. Reddy Pharma SAS

47. Svaas Wellness Limited

48. Nimbus Health GmbH

49. Dr. Reddy’s Laboratories Jamaica Limited

50. Dr. Reddy’s and Nestle Health Science Limited (Formerly, Dr. Reddy’s Nutraceuticals Limited)

51. Northstar Switzerland SARL (from September 30, 2024)

52. North Star OpCo Limited (from September 30, 2024)

53. North Star Sweden AB (from September 30, 2024)

Associates:

1. O2 Renewable Energy IX Private Limited

2. Clean Renewable Energy KK 2A Private Limited (from 30 May 2024)

Joint Ventures:

1. DRES Energy Private Limited

2. Kunshan Rotam Reddy Pharmaceutical Co. Limited

Other Consolidating Entities:

1. Dr. Reddy’s Employees ESOS Trust

2. Cheminor Employees Welfare Trust

3. Dr. Reddy’s Research Foundation

 

S.R. Batliboi & Associates LLP

Chartered Accountants

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: 24213271BKELLC7849

Place: Hyderabad

Date: November 05, 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 HALF YEAR ENDED 30 SEPTEMBER 2024

		All amounts in Indian Rupees millions
Sl.		Quarter ended							Half year ended					Year ended
No.	Particulars		30.09.2024		30.06.2024		30.09.2023			30.09.2024		30.09.2023			31.03.2024
			(Unaudited)		(Unaudited)		(Unaudited)			(Unaudited)		(Unaudited)			(Audited)
1	Revenue from operations
	a) Sales		78,859		75,396		67,348			154,255		133,491			271,396
	b) License fees and service income		1,302		1,331		1,454			2,633		2,695			7,768
	c) Other operating income		221		234		224			455		419			947
	Total revenue from operations		80,382		76,961		69,026			157,343		136,605			280,111
2	Other income		3,075		1,872		3,150			4,747		4,890			8,943
3	Total income (1 + 2)		83,457		78,833		72,176			162,090		141,495			289,054
4	Expenses
	a) Cost of materials consumed		12,872		12,272		9,559			25,144		22,527			44,901
	b) Purchase of stock-in-trade		12,828		13,801		11,378			26,629		20,149			43,991
	c) Changes in inventories of finished goods, work-in-progress and stock-in-trade		(2,033	)	(4,256	)	(907	)		(6,289	)	(3,270	)		(6,805	)
	d) Employee benefits expense		13,992		14,137		12,803			28,129		24,700			50,301
	e) Depreciation and amortisation expense		3,970		3,806		3,755			7,776		7,288			14,700
	f) Impairment of non-current assets, net		924		5		55			929		66			3
	g) Finance costs		757		598		353			1,355		724			1,711
	h) Other expenses		21,034		19,703		16,055			40,537		31,729			68,389
	Total expenses		64,344		60,066		53,051			124,210		103,913			217,191
5	Profit before tax and before share of equity accounted investees(3 - 4)		19,113		18,767		19,125			37,880		37,582			71,863
6	Share of profit of equity accounted investees, net of tax		61		59		42			120		85			147
7	Profit before tax (5+6)		19,174		18,826		19,167			38,000		37,667			72,010
8	Tax expense/(benefit):
	a) Current tax		7,713		5,215		5,901			12,928		13,098			19,459
	b) Deferred tax		(1,958	)	(313	)	(1,556	)		(2,271	)	(4,303	)		(3,228	)
9	Net profit after taxes and share of profit of associates (7 - 8)		13,419		13,924		14,822			27,343		28,872			55,779
10	Net profit after taxes attributable to
	a) Equity shareholders of the parent company		12,557		13,924		14,822			26,481		28,872			55,779
	b) Non-controlling interests		862		-		-			862		-			-
11	Other comprehensive income/(loss)
	a) (i) Items that will not be reclassified subsequently to profit or loss		(33	)	(91	)	(222	)		(124	)	(116	)		(28	)
	(ii) Income tax relating to items that will not be reclassified to profit or loss		-		-		-			-		-			4
	b) (i) Items that will be reclassified subsequently to profit or loss		2,978		115		(1,113	)		3,093		(966	)		(749	)
	(ii) Income tax relating to items that will be reclassified to profit or loss		16		(6	)	201			10		(9	)		117
	Total other comprehensive income/(loss)		2,961		18		(1,134	)		2,979		(1,091	)		(656	)
12	Total comprehensive income (9 + 11)		16,380		13,942		13,688			30,322		27,781			55,123
13	Total comprehensive income attributable to
	a) Equity shareholders of the parent company		15,518		13,942		13,688			29,460		27,781			55,123
	b) Non-controlling interest		862		-		-			862		-			-
14	Paid-up equity share capital (face value Re. 1/- each)		834		834		834			834		834			834
15	Other equity														281,714
16	Earnings per equity share attributable to equity shareholders of parent(face value Re. 1/- each)
	Basic		15.08		16.72		17.82			31.80		34.73			67.04
	Diluted		15.05		16.70		17.78			31.75		34.65			66.92
			(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
Sl.		Quarter ended						Half year ended				Year ended
No.	Particulars	30.09.2024		30.06.2024		30.09.2023		30.09.2024		30.09.2023		31.03.2024
		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Audited)
	Segment wise revenue and results:
1	Segment revenue :
	a) Pharmaceutical Services and Active Ingredients		11,190		10,472		9,625		21,662		18,990		41,295
	b) Global Generics		71,636		68,929		61,130		140,565		121,260		245,673
	c) Others		179		212		683		391		1,276		3,922
	Total		83,005		79,613		71,438		162,618		141,526		290,890
	Less: Inter-segment revenue		2,623		2,652		2,412		5,275		4,921		10,779
	Total revenue from operations		80,382		76,961		69,026		157,343		136,605		280,111
2	Segment results:
	Gross profit from each segment
	a) Pharmaceutical Services and Active Ingredients		2,521		1,772		1,260		4,293		2,273		6,929
	b) Global Generics		45,162		44,518		38,872		89,680		77,258		154,272
	c) Others		89		58		242		147		398		2,423
	Total		47,772		46,348		40,374		94,120		79,929		163,624
	Less: Selling and other un-allocable expenditure/(income), net		28,598		27,522		21,207		56,120		42,262		91,614
	Total profit before tax		19,174		18,826		19,167		38,000		37,667		72,010

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 the 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 05 November 2024. 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 year ended 31 March 2024 includes :

a. 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.

b. Rs.984 million recognised in September 2023, 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 During the quarter and half year ended 30 September 2024, an amount of Rs. 906 million and Rs. 1,715 million, respectively and during the quarter and half year ended 30 September 2023 an amount of Rs. 1,598 million and Rs. 2,274 million, respectively representing government grants has been accounted as a reduction from cost of material consumed.

4 "Impairment of non-current assets, net" Impairment loss recorded during the six months ended 30 September 2024 includes an amount of Rs.907 million pertaining to Haloette® (a generic equivalent to Nuvaring®), a product-related intangible, due to constraints on procurement of the underlying product from its contract manufacturer, resulting in a lower recoverable value compared to the carrying value. This impairment charge pertains to the Company’s Global Generics segment.

5 Pursuant to the amendment in The Finance Act 2024, resulting in withdrawal of indexation benefit on long-term capital gain, the company has written off Deferred Tax Asset amounting to Rs. 482 million, created in earlier period on land, during the quarter and half year ended 30 September 2024.

6 Business purchase agreement with Nestlé India:
On 25 April 2024, the Company entered into an agreement with Nestlé India Limited ("Nestlé India") for the manufacturing, development, promotion, marketing, sale, distribution, and commercialization of nutraceutical products and supplements in India, as well as other mutually agreed geographies. These operations will be carried out by Dr. Reddy's Nutraceuticals Limited, established on 14 March 2024. The entity was later renamed as Dr. Reddy's and Nestlé Health Science Limited (the “Nutraceuticals subsidiary”) on 13 June 2024.

Upon completion of the closing conditions, the transaction concluded on 01 August 2024. Consequently, the Company has made an additional investment of Rs.7,340 million in its Nutraceuticals subsidiary, with corresponding infusion from Nestlé India amounting to Rs.7,056 million resulting in a revised shareholding pattern of 51:49 between the Company and Nestlé India. Subsequently, Nutraceuticals subsidiary had purchased the portfolio of nutraceutical products and supplements from Nestlé India for a consideration of Rs.2,231 million. The acquired portfolio consists of Product licenses, sales and marketing teams, contract manufacturers and employees. Based on fair valuation, the company had allocated purchase consideration and recognised Product licenses and other intangibles of Rs.1,982 million, property, plant and equipment and current assets of Rs. 43 million and Goodwill of Rs.207 million.

Upon Closing, the Company had also transferred its nutraceuticals and supplements portfolio to the Nutraceuticals subsidiary as a common control transfer of business.

This acquisition pertains to Company’s Global Generics segment.

Profit after tax attributable to Non-controlling interest for quarter and half year ended 30 September 2024, has arisen primarily on recognition of deferred tax asset on account of transfer of business from parent company to Nutraceuticals subsidiary.As at 30 September 2024, share of 49% held by Nestlé India is recorded under Non-controlling interest of Rs.3,939 million.

 

 

DR. REDDY’S LABORATORIES LIMITED

7 Business purchase agreement with Haleon:

On June 26, 2024, the Company entered into definitive agreement with Haleon UK Enterprises Limited (“Haleon”) to acquire Haleon’s global portfolio outside of the United States of consumer healthcare brands in the Nicotine Replacement Therapy category (“NRT Business”).

The definitive agreement for the acquisition of this NRT Business from Haleon includes the transfer of intellectual property, employees, agreements with commercial manufacturing organization, marketing authorizations and other assets relating to the commercialization of four brands - i.e., Nicotinell, Nicabate, Thrive, and Habitrol. The acquisition is inclusive of all formats such as lozenge, patch, spray and/or gum in all applicable global markets outside of the United States.

The closing conditions were met, and the transaction was completed on 30 September 2024.

Upon Completion, the company acquired the shares of Northstar Switzerland SARL from Haleon for an upfront cash payment of Rs. 51,407 million (GBP 458 million). An additional consideration of up to Rs. 4,714 million (GBP 42 million) is payable which is contingent upon achieving agreed-upon sales targets in Calender years 2024 and 2025, bringing the total potential consideration to Rs. 56,121 million (GBP 500 million).

The Company completed the provisional allocation of purchase price. The fair value of consideration transferred is Rs. 55,897 million (GBP 498 million). Based on fair valuation, the Company recognised Intangibles (Brands) of Rs. 54,920 million (GBP 488.80 million), Deferred tax liabilities of Rs. 8,469 million (GBP 75.45 million) and Goodwill of Rs. 7,249 million (GBP 64.58 million). This acquisition pertains to the Company’s Global Generics segment.

Further, The company executed a forward exchange contract to hedge its exposure to the payment made in GBP. Upon maturity, hedge gain of Rs. 2,197 million (GBP 20 million) was reclassified from the cash flow hedge reserves and has been adjusted in consideration paid upon closing of the transaction.

Acquisition related costs amounting to Rs.1,017 and Rs.280 were recognised as expenses under “Other expenses” during the half year ended 30 September 2024 and the year ended 31 March 2024, respectively.

This marketing authorisation will transition gradually into the Company in a phased approach between April 2025 and February 2026. During transition period, Haleon group will provide distribution and related services in the markets, facilitating successful integration of the business across various geographies into the Company.

8 The Board of Directors of the Company at their meeting held on 27 July 2024 have approved the sub-division/ split of each equity share having a face value of Rupees five each, fully paid-up, into five equity shares having a face value of Rupee One each, fully paid-up (the “stock split”), by alteration of the capital clause of the Memorandum of Association of the Company. Further, each American Depositary Share (ADS) of the Company will continue to represent one underlying equity share as at present and, therefore, the number of ADS held by an American Depositary Receipt(ADR) holder would consequently increase in proportion to the increase in number of equity shares.

On 12 September 2024 the approval of the shareholders of the Company was obtained through a postal ballot process with a requisite majority.

Consequently, the authorized share capital was sub-divided into 1,450,000,000 equity shares, the paid up share capital is sub-divided into 834,384,730 equity shares and Treasury shares are sub-divided into 1,338,570 having a face value of Rupee One each w.e.f record date of 28 October 2024.

Post stock split, the number of each stock option vested and unvested and not exercised as on the record date were sub-divided into five options and the exercise price was proportionately adjusted.

The affect of stock split was considered in the computation of basic and diluted EPS for the quarter and half year ended 30 September 2024 and prior periods have been restated considering face value of Rupee One each in accordance with Ind AS 33- "Earnings per Share" and rounded off to the nearest decimals.

9 The Company considered the uncertainties relating to the escalation of conflict in the middle east, and duration of 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.

10 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 July 6, 2021, the Company received a subpoena from the SEC for the production of related documents, which were provided to the SEC.

The Company has continued to engage with the SEC and DOJ, including through submissions and presentations regarding the initial complaint and additional complaints relating to other markets, and in relation to its Global Compliance Framework, which includes enhancement initiatives undertaken by the Company, and 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 and can also 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

11 Consolidated Balance Sheet All amounts in Indian Rupees millions

	As at
Particulars	30.09.2024		31.03.2024
	(Unaudited)		(Audited)
ASSETS
Non-current assets
Property, plant and equipment		67,263		62,487
Capital work-in-progress		18,521		13,510
Goodwill		13,159		5,501
Other intangible assets		91,434		36,268
Intangible assets under development		685		683
Investment in equity accounted investees		4,779		4,196
Financial assets
Investments		1,200		1,059
Other financial assets		1,170		1,212
Deferred tax assets, net		17,295		10,578
Tax assets, net		2,279		3,718
Other non-current assets		1,301		1,373
Total non-current assets		219,086		140,585
Current assets
Inventories		72,039		63,552
Financial assets
Investments		30,647		44,050
Trade receivables		84,398		80,298
Derivative financial instruments		400		169
Cash and cash equivalents		11,330		7,107
Other bank balances		8,954		10,170
Other financial assets		15,524		22,527
Other current assets		24,906		20,180
Total current assets		248,198		248,053
TOTAL ASSETS		467,284		388,638
EQUITY AND LIABILITIES
Equity
Equity share capital		834		834
Other equity		306,659		281,714
Equity attributable to equity shareholders of the parent company		307,493		282,548
Non-Controlling interests		3,939		-
Total equity		311,432		282,548
Liabilities
Non-current liabilities
Financial liabilities
Borrowings		3,800		3,800
Lease liabilities		3,561		2,190
Other financial liabilities		2,806		-
Provisions		331		239
Deferred tax liabilities, net		13,762		841
Other non-current liabilities		2,385		3,140
Total non-current liabilities		26,645		10,210
Current liabilities
Financial liabilities
Borrowings		40,022		12,723
Lease liabilities		1,158		1,307
Trade payables
Total outstanding dues of micro enterprises and small enterprises		241		282
Total outstanding dues of creditors other than micro enterprises and small enterprises		29,965		25,862
Derivative financial instruments		337		468
Other financial liabilities		35,929		34,540
Liabilities for current tax, net		5,089		2,341
Provisions		6,361		6,920
Other current liabilities		10,105		11,437
Total current liabilities		129,207		95,880
TOTAL EQUITY AND LIABILITIES		467,284		388,638

 

 

DR. REDDY’S LABORATORIES LIMITED

12 Consolidated statement of cashflows All amounts in Indian Rupees millions

	Half year ended
Particulars	30.09.2024			30.09.2023
	(Unaudited)			(Unaudited)
Cash flows from/(used in) operating activities :
Profit before tax		38,000			37,667
Adjustments for:
Fair value changes and profit on sale of financial instruments measured at FVTPL*, net		(2,245	)		(1,527	)
Depreciation and amortisation expense		7,776			7,288
Impairment of non-current assets		929			66
Allowance for credit losses (on trade receivables and other advances)		96			137
(Profit)/loss on sale or de-recognition of non-current assets, net		(447	)		(445	)
Share of profit of equity accounted investees		(120	)		(85	)
Unrealized exchange (gain)/loss, net		504			(1,179	)
Interest income		(1,409	)		(1,048	)
Finance costs		1,355			724
Equity settled share-based payment expense		208			211
Inventories write-down		2,844			1,418
Changes in operating assets and liabilities:
Trade receivables		(4,182	)		2,689
Inventories		(11,330	)		(9,340	)
Trade and other payables		4,062			4,568
Other assets and other liabilities, net		(9,474	)		(3,482	)
Cash generated from operations		26,565			37,662
Income tax paid, net		(8,754	)		(8,486	)
Net cash generated from operating activities		17,811			29,176
Cash flows (used in)/from investing activities :
Purchase of property, plant and equipment		(12,646	)		(7,323	)
Proceeds from sale of property, plant and equipment		411			487
Purchase of other intangible assets		(1,687	)		(8,787	)
Proceeds from sale of other intangible assets		419			21
Investment in equity accounted investees		(317	)		-
Payment for acquisition of businesses		(51,441	)		-
Purchase of investments (including bank deposits)		(138,326	)		(70,008	)
Proceeds from sale of investments (including bank deposits)		162,988			71,815
Interest and dividend received		1,280			597
Dividend received from equity accounted investees		-			445
Net cash (used in)/from investing activities		(39,319	)		(12,753	)
Cash flows (used in) financing activities :
Proceeds from issuance of equity shares (including treasury shares)		157			765
Proceeds/(Repayment) of short-term borrowings, net		27,556			(1,054	)
Repayment of long-term loans and borrowings		-			(3,800	)
Proceeds from long term borrowings		-			3,800
Proceeds from issuance of equity shares in Subsidiary to Non-controlling interest		7,056			-
Payment of principal portion of lease liabilities		(735	)		(524	)
Dividend paid		(6,662	)		(6,648	)
Interest paid		(1,681	)		(1,051	)
Net cash from/(used in) financing activities		25,691			(8,512	)
Net increase/(decrease) in cash and cash equivalents		4,184			7,911
Effect of exchange rate changes on cash and cash equivalents		(6	)		(155	)
Cash and cash equivalents at the beginning of the period		7,107			5,779
Cash and cash equivalents at the end of the period(1)		11,285			13,535

**FVTPL (fair value through profit or loss)

⁽¹⁾Adjusted for bank-overdraft of Rs. 45 million and Rs. 4 million for the half year ended 30 September 2024 and 30 September 2023, respectively.

			By order of the Board
			For Dr. Reddy’s Laboratories Limited
Place: Hyderabad			G V Prasad
Date: 05 November 2024			Co-Chairman & Managing Director