DR.REDDYS LAB

This Hyderabad based company posted a good performance for Q4FY15. It reported a 8% (YoY) rise in consolidated net profit of Rs.519 crore. This was on the back of 11% rise in revenues at Rs.3870 crore. The growth in net profit could have been much better but for the forex loss of Rs.84 crore and a 29% rise in R&D expenses.  EBITDA for the quarter was up 4% at Rs.810 crore and operating margin was at 21%, down 80 bps.

For FY15,the company posted a 12% rise in consolidated revenues at Rs.14,819 crore and net profit was at Rs.2218 crore, up 3%. Interest outgo for the quarter rose by a huge 321% at Rs.168 crore. In terms of revenue mix by segment, global generics showed a 81% rise, with North America showing a 17% growth. PSAI showed a 6% growth led by Europe which rose 20%. 13 new product filings were made in the US in FY15. Cumulatively, 68 ANDAs are pending for approval with the USFDA of which 43 are Para IVs out of which we believe 13 to have ‘First To File’ status. Cash at the end of FY15 was at Rs.3965 crore, up 18%.