Dr. Reddy’s Laboratories (DRREDDY) Q4 20/21 earnings summary

Executive summary

• FY21 revenue reached Rs. 18,972 cr, up 9% YoY; EBITDA was Rs. 4,748 cr, up 2%, both record highs.

• FY21 PAT was Rs. 1,915 cr, down 2% YoY, primarily reflecting the prior-year MAT credit DTA; Q4 PAT was affected by deferred tax asset derecognition.

Financial highlights

• Q4 FY21 revenue was Rs. 4,728 cr, up 7% YoY and down 4% QoQ; EBITDA was Rs. 1,133 cr, up 13% YoY and down 4% QoQ.

• Q4 PBT was Rs. 807 cr, up 13% YoY and 184% QoQ; PAT was Rs. 554 cr, down 28% YoY and up 2,695% QoQ.

• FY21 PBT was Rs. 2,832 cr, up 57% YoY; reported PAT declined 2% YoY.

Outlook and guidance

• Priorities include uninterrupted operations during Covid-19, market-leading growth, building the product pipeline, productivity gains, and investment in capabilities and brands.

• Plans called for vaccinating 125 million people in India over 8–12 months, with domestic manufacturing expected to supply most doses; imported supply was initially estimated at 15–20% of requirement.

• Sputnik V distribution was to begin in metros and Tier 1 cities given cold-chain needs, then expand; pricing was Rs. 948 plus GST, or Rs. 995 per dose, with potential reductions as domestic supply begins.