Department of Management Studies

JNNCE, Shimoga 577204 (Karnataka)

Seminar On
Dr Reddys Laboratory Ltd
Presented By
Mr.SANTHOSHCHANDRA .
Mr. LAKSMEESHA KANTI.K.S
H .R
Associate Professor
Mrs.SHARANYA
Department of Management
III Semester, MBA
Studies
Department of
JNNCE, Shimoga
Management Studies
10-09-2016
JNNCE, Shimoga
Under the Guidance of

Content
Introduction to company
Introduction to pharmaceutical
industry
Company profile
Milestone
Evolution directors
Our top brands
Balance sheet
Common size analysis
Comparative analysis
Trend analysis
Ratios
conclusion
Bibliography

Introduction to pharmaceutical
industry

Thepharmaceuticalindustrydiscovers,produces,
andmarketsdrugsorpharmaceuticalsforuseas
medications.
Pharmaceuticalcompaniesmaydealingenericor
brandmedicationsandmedicaldevices.
Theyaresubjecttoavarietyoflawsandregulations
thatgovernthepatenting,testing,safety,efficacy
andmarketingofdrugs

Introduction to company
Dr.Reddy'sLaboratories,isanIndianmultinationalpharmaceutical
companybasedinHyderabad,Telangana,India.
ThecompanywasfoundedbyAnjiReddy.
Dr.Reddy'sLaboratoriesLimitedisapharmaceuticalcompanythatis
engagedinprovidingmedicines.
Dr.ReddysLaboratoriesisleadingpharmaceuticalcompanywith
presenceinover100countries.
ItmanufacturesarangeofproductssuchasActivepharmaceutical
ingredients,GenericandBrandedFinishedDosages,Specialty
pharmaceuticals,andBiopharmaceuticals.

Company Profile
ThecompanywasfoundedbyKallamAnjiReddyin1984.

Dr.Reddy'smanufacturesandmarketsawiderangeofpharmaceuticals
inIndiaandoverseas
Thecompanyhasover190medications,60activepharmaceutical
ingredients(APIs)fordrugmanufacture,diagnostickits,criticalcare,and
biotechnologyproducts.
HeadquartersatHyderabad,Telangana,India.
KeypeopleG.V.Prasad(CEO)KallamSatishReddy(Chairman)

Cont
Revenue-15,697.80crore(US$2.3billionin2016)(1,48,189million
2015)
Netincome-2,151.40crore(US$320millionin2016)
Totalassets-20,010.40crore(US$3.0billion2016)(194,762million2015)
Totalequity-82.80crore(US$12million2016)(111,302millionRs2015)
Currentshareprice-9 Sep,3:30PMIST3,193.30INR
Numberofemployees-20,373(April2015)

Milestone
In1984
Scientistandentrepreneur,Dr.KAnjiReddyestablishesDr.Reddy's
Laboratorieswithavisionofmakingmedicinesaccessibletothemillionsin
India.
In1991
HelaunchedOmez,Dr.ReddysbrandofOmeprazole,whichgoesontobecome
Dr.ReddysfirstINR(InternationalNormalizedRatio)1Billionbrand.

In1995
Realizingtheimportanceofmakinginnovativemedicinesmoreaccessiblenot
justinIndia,buttheworld,Dr.Reddysfocusesoncreatingworld-class
capabilities..Itexpandsgloballyandentershighlyregulatedmarketslikethe
USA.

Cont
In2001
Dr.ReddysbecomesthefirstAsiaPacificpharmaceuticalcompany,outside
Japan,tolistontheNewYorkStockExchange.Thislistinggivesthecompany
visibilityintheworldslargestpharmaceuticalmarketandensuresstronger
financialsupport.
In2007
Dr.Reddysfocusesonmakingexpensivetherapiesagainstdisease,affordable.
Dr.Reddyslaunchestheworldsfirstbiosimilarmonoclonalantibody(MAB),
Rituximab.

In2010
DrReddysfocusesoncreatingandrollingoutanumberofprogramstohelp
patients,doctorsandcaregiversbettermanagingdisease.

Cont
In2012

Dr.ReddysacquiresOctoPlusN.V.,Netherlands,aservicebasedspecialtypharmaceuticalcompany
In2014
Dr.Reddysunitesallofthemwithacommonpurposethats
simpleandyet,powerful:Weaccelerateaccesstoaffordable
andinnovativemedicinesbecauseGoodHealthCantWait.
Ourbeliefistranslatedintoasetofpromisesthateach
employeewouldmakeandstandby.Together,theytakethe
institutiontonewervistas.

Evaluation Directors
Whole Time Directors

Independent & Non Whole-time Directors

Our top Brands

Sustainable revenue
growth over last 5 years

REVENUES (Rs Cr)

+10%

Wellplacedtoharnessprofitablegrowth
opportunitiesinthefuture
Sustained focus on o Portfoliomanagement
o Operationsexcellence
o Science&Technologycapabilities
o SuperiorCommercialchoices
acrossmarkets
Poised for growth inemerging
businessesofProprietaryProducts,Biologics
andAurigene

11,627

13,217

14,819 15,471

9,674

FY12

FY13

FY14

FY15

FY16

FY16 global revenues of $2.4Bn

Steady
improvement
in
capital
efficiency & productivity over the last
five years

Our India business grew at

12% CAGR (FY15 )

REVENUES (million Rs)

+12%

148,189
132,170

116,266
96,737

STRATEGIC FOCUS
74,693

DeepfocusonChronicandSuper-specialty
therapies
StrategicbusinessdevelopmentandM&A
efforts
Differentiatedassetsinrelevanttherapies

FY11

FY12

FY13

FY14

FY15

Successful integration of the brands

acquired from UCB
Improvement on the back of Focused sales & marketing efforts on
mega brands
Improving new launch productivity
Scale-up in institutions sales

Profitable growth trends

90 ,0 0 0

GROSS PROFIT

85,403

All values in Rs
million. 9%

EBITDA

12

75,801

80 ,0 0 0

of 5
yr
CAG
R

10

70 ,0 0 0

53,305

60 ,0 0 0

50 ,0 0 0

EBITDA

60,579

36,168

33,180

40,263

40 ,0 0 0

25,409
30 ,0 0 0

27,819

20 ,0 0 0

16,789

10 ,0 0 0

FY11

FY12

FY13

FY14

FY15

Gross profit
FY11

FY12

132,170

148,189
29%

96,737

InvestorPresentation-2016

28%

28%

26%

21%

74,693

FY12

FY15

ROCE

Sales (INR)

FY11

FY14

ROCE

Sales (INR)

116,266

FY13

FY13

FY14

FY15

FY11

FY12

FY13

FY14

FY15

Dr.ReddysLaboratoriesLtd.

14

profit
Cont

and loss A/c

(ALLAMOUNTSININDIANRUPEESMILIONS)

Particular

31/3/2011 31/3/2012 31/3/2013 31/3/2014 31/3/2015

INCOME
sales [Gross]

52,537

66,443

81,462

9,729

99,703

-356

-405

-718

82

-829

52,181

66,038

80,744

9,647

98,874

530

388

247

308

110

1,315

154

OtherOperatingRevenues

1,750

719

1,893

81

835

Total Operating Revenues

54,241

67,397

84,340

9,728

100,110

818

1,417

152

2,228

54,241

68,215

85,757

9,880

102,338

Less:Exciseduty
sales,[Net]
service income
license fees

OtherIncome
Total Revenue

EXPENSES
CostOfMaterialsConsumed

16,705

17,386

22,773

21,918

22,484

PurchaseOfStock-InTrade

3,076

3,931

4,690

5,261

ChangesInInventoriesOfFG,WIPAndStockInTrade

-1,048

-1,006

-1,706

-289

conversioncharges

276

505

592

785

927

Exciseduty

617

534

636

7,012

8,661

11,381

14,199

14,909

53

636

614

783

638

DepreciationAndAmortisationExpenses

2,479

3,011

3,128

3,805

4,902

researchanddevelopment

5,128

5,813

6,509

OtherExpenses

10,895

15124

19,444

29,777

32,910

557

1925

223

43,722

55,623

68,225

74,251

81,742

10,519

12,592

17,532

24,544

20,599

10,519

12,592

17,532

24544

20599

10,519

12,592

17,532

24,544

20,599

CurrentTax

1,585

4,275

4,140

4,901

3,767

DeferredTax

-807

737

315

38

8,934

9,124

12,655

19,328

16,794

EmployeeBenefitExpenses
FinanceCosts

provisionforotherthantemporarydiminutionin
thevalueoflong-terminvestements
Total Expenses
Profit/Loss Before Exceptional,
ExtraOrdinary Items And Tax
ExceptionalItems
profit before extraordinary items and tax
extraordinary items
Profit/Loss Before Tax
income taxes

Profit/Loss For The Period

Cont Balance Sheet

(ALLAMOUNTSININDIANRUPEESMILIONS)

Particular

31/3/2011

31/3/2012

31/3/2013

31/3/2014

31/3/2015

LIABILITIES

SHAREHOLDER'SFUNDS

Share Capital
Reserves and Surplus
TotalShareholdersFunds

846
59,356
60,202

NON-CURRENTLIABILITIES

848
66,330
67,178

849
76,985
77,834

851
92,439
93,290

852
105,488
106,340

Long Term Borrowings

Deferred Tax Liabilities [Net]
Other Long Term Liabilities
Long Term Provisions

5,130
1,008
60
197

5,130
200
63
212

63
937
28
298

9,015
1,252
47
335

9,391
1,290
255
498

TotalNon-CurrentLiabilities

6,395

5,605

1,326

10,649

11,434

CURRENTLIABILITIES
Short Term Borrowings
Trade Payables
Other Current Liabilities
Short Term Provisions
TotalCurrentLiabilities
TotalCapitalAndLiabilities

9,311
8,069
5,889
2,768
26,037
92,634

10,204
7,334
9,844
3,241
30,623
103,406

15,828
7,678
13,011
4,214
40,731
119,891

17,630
8,423
10,294
4,795
41,142
145,081

21,857
7,160
12,374
5,395
46,786
164,560

ASSETS

FixedAssets
Tangible Assets

16,893

18,967

23,355

26,937

31,294

17

515

546

1,200

5,460

6,176

4,232

5,761

4,883

24,620

22,707

21,826

17,401

17,601

9,117

6,318

3,501

5,358

5,538

Intangible Assets
Capital work-in-progress
Non-Current Investment
Long Term Loans And Advances

Other Non-Current Assets

TotalNon-CurrentAssets

56,107

CURRENTASSETS

Current Investments

54,169

209
53,638

56,003

11
60,527

2,070

1,966

10,664

21,022

Inventories

10,632

13,267

15,265

15,921

17,233

Trade Receivables

17,105

19,435

29,639

45,615

47,117

662

8,490

9,191

6,651

9,014

Short Term Loans And Advances

5,778

5,298

8,885

8,287

8,657

OtherCurrentAssets

1,750

677

1,307

1,940

990

TotalCurrentAssets

35,927

49,237

66,253

89,078

104,033

TotalAssets

92,034

103,406

119,891

145,081

164,560

Cash And Cash Equivalents

Dr Reddy's Laboratories Limited

common size Analysis

(ALL AMOUNTS IN INDIAN RUPEES

MILIONS)

Particular of Asset and Liability

31/3/2014

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS

ShareCapital

851

ReservesandSurplus

92,439

Total Shareholders Funds

NON-CURRENT LIABILITIES

93,290

LongTermBorrowings

9,015

DeferredTaxLiabilities[Net]

1,252

OtherLongTermLiabilities

47

LongTermProvisions

335

Total Non-Current Liabilities

CURRENT LIABILITIES

10,649

ShortTermBorrowings

17,630

TradePayables

8,423

OtherCurrentLiabilities

10,294

31/3/2015

0.59
63.72
64.30

6.21
0.86
0.03
0.23
7.34

12.15
5.81
7.10

852
105,488
106,340

9,391
1,290
255
498
11,434

21,857
7,160
12,374

0.52
64.10
64.62

5.71
0.78
0.15
0.30
6.95

13.28
4.35
7.52

ASSETS
Fixed Assets

TangibleAssets

26,937

IntangibleAssets

546

Capital work-in-progress

5,761

Non-CurrentInvestment

17,401

LongTermLoansAndAdvances

5,358

OtherNon-CurrentAssets

Total Non-Current Assets

CURRENT ASSETS

56,003

CurrentInvestments

10,664

Inventories

15,921

TradeReceivables

45,615

CashAndCashEquivalents

6,651

ShortTermLoansAndAdvances

8,287

18.57
0.38
3.97
11.99
3.69
0.00
38.60
0.00
7.35
10.97
31.44
4.58
5.71

31,294
1,200
4,883
17,601
5,538
11
60,527

21,022
17,233
47,117
9,014
8,657

19.02
0.73
2.97
10.70
3.37
0.01
36.78
0.00
12.77
10.47
28.63
5.48
5.26

Dr Reddy's Laboratories Limited

comprative Analysis (ALL AMOUNTS IN INDIAN RUPEES MILIONS)
31/3/2015
Particular of Asset and Liability 31/3/2014
orinAmount orinPercent
EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS
851

852

ReservesandSurplus

92,439

105,488

13,049

Total Shareholders Funds

NON-CURRENT LIABILITIES

93,290

106,340

13,050

ShareCapital

LongTermBorrowings

9,015

9,391

376

DeferredTaxLiabilities[Net]

1,252

1,290

38

47

255

208

335

498

163

Total Non-Current Liabilities

CURRENT LIABILITIES

10,649

11,434

785

ShortTermBorrowings

17,630

21,857

4,227

8,423

7,160

(1,263)

10,294

12,374

2,080

OtherLongTermLiabilities
LongTermProvisions

TradePayables
OtherCurrentLiabilities

0.12
14.12
13.99

4.17
3.04
442.55
48.66
7.37

23.98
-14.99
20.21
12.51

26,937

31,294

4,357

546

1,200

654

5,761

4,883

(878)

17,401

17,601

200

5,358

5,538

180

OtherNon-CurrentAssets

11

11

Total Non-Current Assets

CURRENT ASSETS

56,003

60,527

4,524

CurrentInvestments

10,664

21,022

10,358

Inventories

15,921

17,233

1,312

TradeReceivables

45,615

47,117

1,502

CashAndCashEquivalents

6,651

9,014

2,363

ShortTermLoansAndAdvances

8,287

8,657

370

ASSETS
Fixed Assets
TangibleAssets
IntangibleAssets

Capital work-in-progress
Non-CurrentInvestment
LongTermLoansAndAdvances

16.17
119.78
-15.24
1.15
3.36
-
8.08

97.13
8.24
3.29
35.53
4.46

Dr Reddy's Laboratories Limited

Trend Analysis
(ALL AMOUNTS IN INDIAN RUPEES MILIONS)

Particular
LIABILITIES

Trend percentages

31/3/201 31/3/201 31/3/201 31/3/201 31/3/201

31/3/201 31/3/201 31/3/201 31/3/201 31/3/201
1
2
3
4
5
1
2
3
4
5

SHAREHOLDER'S FUNDS

ShareCapital

846

848

849

851

852

100

100.24

100.35

100.59

100.71

ReservesandSurplus

59,356

66,330

76,985

92,439

105,488

100

111.75

129.70

155.74

177.72

Total Shareholders Funds

60,202

67,178

77,834

93,290

106,340

NON-CURRENT LIABILITIES

LongTermBorrowings

5,130

5,130

63

9,015

9,391

100

100.00

1.23

175.73

183.06

DeferredTaxLiabilities[Net]

1,008

200

937

1,252

1,290

100

19.84

92.96

124.21

127.98

60

63

28

47

255

100

105.00

46.67

78.33

425.00

197

212

298

335

498

100

107.61

151.27

170.05

252.79

6,395

5,605

1,326

10,649

11,434

OtherLongTermLiabilities
LongTermProvisions
Total Non-Current Liabilities

CURRENT LIABILITIES
ShortTermBorrowings

9,311

10,204

15,828

17,630

21,857

100

109.59

169.99

189.35

234.74

TradePayables

8,069

7,334

7,678

8,423

7,160

100

90.89

95.15

104.39

88.73

OtherCurrentLiabilities

5,889

9,844

13,011

10,294

12,374

100

167.16

220.94

174.80

210.12

ShortTermProvisions

2,768

3,241

4,214

4,795

5,395

100

117.09

152.24

173.23

194.91

26,037

30,623

40,731

41,142

46,786

Total Current Liabilities

ASSETS
Fixed Assets
TangibleAssets
IntangibleAssets

16,893

18,967

23,355

26,937

31,294

100

112.28

138.25

159.46

185.25

515

546

1,200

100

5.88

17

3,029.41 3,211.76

7,058.82

5,460

6,176

4,232

5,761

4,883

100

113.11

77.51

105.51

89.43

24,620

22,707

21,826

17,401

17,601

100

92.23

88.65

70.68

71.49

9,117

6,318

3,501

5,358

5,538

100

69.30

38.40

58.77

60.74

OtherNon-CurrentAssets

209

11

100

Total Non-Current Assets

56,107

54,169

53,638

56,003

60,527

Capital work-in-progress
Non-CurrentInvestment
LongTermLoansAndAdvances

CURRENT ASSETS
CurrentInvestments

2,070

1,966

10,664

21,022

100

Inventories

10,632

13,267

15,265

15,921

17,233

100

124.78

143.58

149.75

162.09

TradeReceivables

17,105

19,435

29,639

45,615

47,117

100

113.62

173.28

266.68

275.46

CashAndCashEquivalents

662

8,490

9,191

6,651

9,014

100

ShortTermLoansAndAdvances

5,778

5,298

8,885

8,287

8,657

100

91.69

153.77

143.42

149.83

OtherCurrentAssets

1,750

677

1,307

1,940

990

100

38.69

74.69

110.86

56.57

Total Current Assets

35,927

49,237

66,253

89,078

104,033

Total Assets

92,034

103,406

119,891

145,081

164,560

1,282.48 1,388.37 1,004.68

1,361.63

Ratios
particulars

2013

2014

2015

Current ratio

1.63

2.17

2.22

Quick ratio

1.17

1.75

1.25

Net worth ratio

0.65

0.64

0.65

Debt equity Ratio

0.001:1

0.097:1

0.094:1

Fixed asset to net worth ratio

0.69

0.60

0.57

Current asset to net worth

ratio

0.85

0.95

0.98

Working capital turnover ratio

3.20

1.98

1.73

Fixed asset turnover ratio

1.50

1.70

1.63

Expenses ratio

15.67

20.35

16.99

Proprietary ratio

0.96

0.98

1.08

Total asset turnover ratio

0.68

0.66

0.61

Gross profit ratio

75.02%

80%

86.37%

Net profit ratio

15.67%

20.35%

16.99%

Return on capital employed

ratio

19.38%

21.79%

16.73%

Profitable growth trends

90 ,0 0 0

GROSS PROFIT

85,403

All values in Rs
million.

EBITDA

12

75,801

80 ,0 0 0

10

70 ,0 0 0

53,305

60 ,0 0 0

50 ,0 0 0

EBITDA

60,579

36,168

33,180

40,263

40 ,0 0 0

25,409
30 ,0 0 0

27,819

20 ,0 0 0

16,789

10 ,0 0 0

FY11

FY12

FY13

FY14

FY15

Gross profit
FY11

FY12

132,170

148,189
29%

96,737

InvestorPresentation-2016

28%

28%

26%

21%

74,693

FY12

FY15

ROCE

Sales (INR)

FY11

FY14

ROCE

Sales (INR)

116,266

FY13

FY13

FY14

FY15

FY11

FY12

FY13

FY14

FY15

Dr.ReddysLaboratoriesLtd.

31

conclusion

Dr Reddy's laboratories Ltd is the 3

rd largest pharmaceutical industry in
India . Its net profit decreased by
3.36%. gross profit increased by
6.38% , But Total revenue increased
by 12%, By analyzing past data of this
company we can clearly come to
know that its has continuous growth.

Bibliography
http://www.drreddys.com/our-story/our-heritage/mi
lestones/
http://www.drreddys.com/our-story/leadership/board
-of-directors/
http://www.drreddys.com/our-story/featured-stories
/
http://www.moneycontrol.com/annualreport/drredd
yslaboratories/DRL/2014
http://www.drreddys.com/germany/our-products/