Dr Reddy Laboratories : Outcome of Board Meeting

Dr. Raddy's Laboratories 1-td.

8 -2-337,Road No. 3, Banjara Hills,

Hyderabad - 500 034, Telangana, India.

CIN: LB5195TG1984Pl,.C004507

Tel :[phone]

Fax :[phone]

Email :[e-mail] www.drreddys.com

•••

Dr. Reddy's �;•

October 28, 2020

To,

The Secretary

BSE Limited

National Stock Exchange of India Limited

New York Stock Exchange Inc.

Dear Sir/Madam,

Sub: Outcome of Board Meeting

Further to our letter dated September 27, 2020, we would like to inform you that the Board of Directors of the Company at their meeting held on October 28, 2020 have inter alia approved the Unaudited Financial Results of the Company for the quarter and half-year ended September 30, 2020.

In terms of the above, we are enclosing herewith the following:

Unaudited Consolidated Financial Results of the Company for the quarter and half-year ended September 30, 2020 prepared in compliance with International Financial Reporting Standards (IFRS) as issued by International Accounting Standards Board (IASB).

1. Press Release on Financial Results of the Company for the above period.
2. Unaudited Consolidated Financial Results of the Company and its subsidiaries for the quarter and half-year ended September 30, 2020 as per Indian Accounting Standards.
3. Unaudited Standalone Financial Results of the Company for the quarter and half year ended September 30, 2020 as per Indian Accounting Standards.

Pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Limited Review Reports of the Statutory Auditors on the Unaudited Standalone and Unaudited Consolidated Financial Results at point nos. 3 and 4 are also enclosed.

Further, the Board of Directors have also given their in-principle approval to list the Company's American Depository Receipts (ADRs) on NSE IFSC Limited (NSE International Exchange, GIFT City, Gujarat, India) subject to compliance of applicable laws and approval of concerned authorities.

The Board Meeting commenced at 08.15 AM and concluded at 1.00 PM This is�for:•ryour; information and records.

With

San1 · odd r _9>m'j)a9)ny Secretary

Encl: as above

•••

Dr.Reddy's �;•

Dr. Raddy's Laboratories Ltd.

8-2-337, Road No. 3, Banjara Hills,

Hyderabad - 500 034, Telangana,

India.

CIN: L85195TG1984PLC004507

Tel	:[phone]
Fax	:[phone]

Email :[e-mail] www.drreddys.com

Unaudited consolidated financial results of Dr. Reddy's Laboratories Limited and its subsidiaries for the quarter and half year ended 30 September 2020 prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB)

SI. No.		Particulars

• Revenues

• Cost ofrevenues

• Gross profit(l - 2)

• Selling, general and administr,nive expen�es
  5 Research and development expenses
  6 lmpainnent ofnon current assets
  7 Other income, net
  Total operating expenses
  8 Results from operating activities ((3) -(4+ 5 + 6 + 7)1 Finance income
  Finance expense
  9 Finance income, net

10 Share ofprofit ofequity accounted investees, net of tax

Profit before tax(8 + 9 + I0)

12	Tax expensel(benefit), net
13	Profit for the period I year(11 -12)
14	Earnings per share:

30.09.2020

(Unaudited)

48,967

22,558

26,409

13.107 4,359 781 (149)

18,098

8,311

489

(252)

237

73

8,621

998

7,623

Quarter ended

30.06.2020

(Unaudited)

44,175

19,420

24,755

12,786

3,980

-

(118)

16,648

8,107

838

(233)

605 77 8,789 2,996 5,793

30.09.2019

(Unaudited)

48,009

20.389

27,620

13,217

3,662

3,560 (135)

20,304

7,316

535 (304)

231

117

7,664

(3,261)

10,925

All amounts in Indian Rupees millions

Half year ended	Year ended
30.09.2020	30.09.2019	31.03.2020
(Unaudited)	(Unaudited)	(Audited)
93,142	86,444	174,600
41,978	38,965	80,591
51,164	47,479	94,009
25,893	25,282	50,129
8,339	7,271	15,410
781	3,560	16,767
(267)	(3,894)	(4,290)
34,746	32.219	78,016
16,418	15,260	15,993
1,327	1,225	2,461
(485)	(601)	(983)
842	624	1,478
150	280	561
17,410	16,164	18,032
3,994	(1,389)	(1,466)
13,416	17,553	19,498

Basic earnings per share ofRs.51- each

Diluted earnings per share ofRs.51- each

45.96	34.94	65.93	80.91	105.90	I17.63
45.83	34.86	65.82	80.69	105.71	I I7.40
(Not ann11alised)	(Not annualised)	(Not annualised)	(Not ann11alised)	(Not annualised)

••·

Dr.Reddy's �;•

Segment reporting (consolicJated)

			Quarter ended
SI. No.	Particulars	30.09.2020	30.06.2020	30.09.2019
		(Unaudited)	(Unaudited)	(Unaudited)
	Segment wise revenue and results:

• Segment revenue:

	a) Pharmaceutical Services and Active Ingredients	10,256	10,090	8,502
	b) Global Generics	39,841	35,075	32,816
	c) Proprietary Products	100	56	7,425
	d) Others	521	491	661
	Total	50,718	45,712	49,404
	Less: Inter-segment revenues	1,751	1,537	1,395
	Net revenue from operations	48,967	44,175	48,009
2	Segment results:
	Gross profit from each segment	2,284	2,856	1,750
	a) Pharmaceutical Services and Active Ingredients
	b) Global Generics	23,685	21,526	18,200
	c) Proprietary Products	88	56	7,298
	d) Others	352	317	372
	Total	26,409	24,755	27,620
	Less: Selling and other un-allocableexpenditure, net of	17,788	15,966	19,956
	other income
	Total profit before tax	8,621	8,789	7,664

All amounts in Indian Rupees millions

Half yenr ended			Year ended
30.09.2020	30.09.2019		31.03.2020
(Unaudited)	(Unaudited)			(Audited)
20,346	14,435		31,657
74,916	65,798		138,123
156	7,706		7,949
1,012	1,294		2,781
96,430	89,233		180,510
3,288	2,789		5,910
93,142	86,444		174,600
5,140	2,075			6,190
45,211	37,207			78,449
144	7,505			7,744
669	692	1,626
51,164	47,479	94,009
33,754	31,315	75,977
17,410	16,164	18,032

Global Generics segment includes operations of Biologics business, Inter-segment revenues represent sale from Pharmaceutical Services and Active Ingredients to Global Generics at cost.

The unaudited results have been reviewed by the Audit Committee of the Board on 27 October 2020 and approved by the Board of Directors of the Company at their meeting held on 28 October 2020. The above financial results have been prepared in accordance with International Financial Reporting Standards and its interpretations (IFRS), as issued by the International Accounting Standards Board (IASB).

• On IO June 2020, the Company completed the acquisition of select divisions of Wockhardt Limited's branded generics business in India and the territories of Nepal, Sri Lanka, Bhutan and Maldives. The business comprises a portfolio of 62 brands in multiple therapy areas, such as respiratory, neurology, venous malformations, dennatology, gastroenterology, pain, and vaccines. This entire portfolio has been transferred to the Company, along with related sales and marketing teams, the manufacturing plant located in Baddi, Himachal Pradesh, and employees. During the quarter ended 30 September 2020, the Company completed the purchase price allocation. The fair value of consideration transferred is Rs.16,115 million. The Company recognised Rs. 373 million, Rs. 14,888 million and Rs. 530 million towards property, plant and equipment, intangible assets, and goodwill, respectively. The acquisition pertains to Company's Global Generics segment.

• Impairment charge of Rs. 781 million for the quarter ended 30 September 2020 comprises of:
• • Rs. 728 million pertaining to product related intangible forming part of Company's Proprietary Segment due to decrease in the market potential for the product;
  • Rs. 53 million pertaining to certain product related intangibles forming part of Company's Global generics Segment due to Company's decision to discontinue their further development.

• Tax expense for the quarter ended 30 September 2020 includes benefit on account of recognition of deferred tax asset amounting to Rs. 1,012 million pursuant to a planned restructuring activity between the Group companies.

• "Revenues" for the quarter ended 30 September 2019 and year ended 31 March 2020 include an amount of Rs. 7,229 million (U.S.$105.1 million) and Rs. 7,486 million (U.S.$108.7 million), respectively, towards license fee for selling US and select territory rights for ZEMBRACE® SYMTOUCH® (sumatriptan injection) 3 mg and TOSYMRA® (sumatriptan nasal spray) IO mg, (formerly referred to as "DFN-02") to Upsher-Smith Laboratories, LLC. The costs associated with this transaction are Rs. 328 million.

• "Other income, net" for the half year ended 30 September 2019 and year ended 31 March 2020 includes an amount of Rs. 3,457 million received from Celgene, pursuant to a settlement agreement entered in April 2019. The agreement effectively settles any claim the Company or its affiliates may have had 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 REVLIMID brand capsules, (Lenalidomide) pending before Health Canada.

• Total impairment charge for the year ended 31 March 2020 is Rs. 16,767 million, of which Rs. I I,137 million was towards impairn1ent of gNuvaring, Rs. 4,385 million was towards ramelteon, tobramycin and imiquimod, and the balance is towards other product related intangibles forming part of Company's Global generics and Proprietary Products segments.

• Tax benefit for the year ended 31 March 2020 was primarily due to recognition of deferred tax asset of:
• • Rs. 4,989 million towards MAT recoverable pursuant to enactment ofTaxation Laws (Amendment) Act, 2019;
  • Rs. 1,264 million pursuant to a planned restructuring activity between the group Companies.

• On 22 October 2020, the Company informed the stock exchanges that it had experienced an information security incident and consequent isolation of impacted IT services. This incident involved a ransom-wareattack. The Company promptly engaged leading outside cybersecurity experts, launched a comprehensive containment and remediation effort and investigation to address the incident. As of date, the Company's investigation has not ascertained if any data breaches in the incident pertain to personally identifiable information stored in the Company's systems. Recovery and restoration of all applications and data is underway. All critical operations are being enabled in a controlled manner.

IO	The Company continues to consider the impact of COVID-19 pandemic in assessing the recoverability of receivables, goodwill, intangible assets, and certain investments. For
	this purpose, the Company considered internal and external sources of information up to the date of approval of these financial results. The Company based on its judgements,
	csi1 t/l.lCS pnd n:;su111ptio11s including sensitivity analysis expects to fully recover the carrying amount of receivables, goodwill, intangible assets, investments and other
I	�ilSe1$:'i'1,c1 Compuny will cnnlinuo 10 �losely monitor any mntcrin.l changes to future economic conditions.
'
1	Th •Boon.I f IDjrecturs hnve alsu give tbc-ir in principle npprovnl tor the p1)t(l11lial secondary listing of American Depository Receipts (ADRs) on NSE IFSC Limited (NSE
	111<.sp,;tt 11: 11{hmigc) sul�jcct 11'1 c<)mplinnc.: ofapplicable, lows 11ndaprrov11l ofconcerned authorities.

--�	� II
n1u	,)
�

•··

Dr.Reddy's �;•

12 Consolidated statements of financial position

Particulars

ASSETS

Current assets

Cash and cash equivalents

Other investments

Trade and other receivables

Inventories

Derivative financial instruments

Tax assets

Other current assets

Total current assets

Non-current assets

Properly, plant and equipment

Goodwill

Other intangible assets

Trade and other receivables

Investment in equity accounted investees

Other investments

Deferred tax assets

Other non-current assets

Total non-current assets

Total assets

LIABILITIES AND EQUITY

Current liabilities

Trade and other payables

Short-term borrowings

Long-term borrowings, current portion

Provisions

Current tax liabilities

Derivative financial instruments

Bank overdraft

Other current liabilities

Total current liabilities

Non-current liabilities

Long-term borrowings, excluding current portion Deferred tax liabilities

Provisions

Other non-current liabilities

Total non-current liabilities

Total liabilities

Equity Share capital Treasury shares Share premium

Share based payment reserve Capital redemption reserve

Special economic zone re-investment reserve Retained earnings

Other components of equity

Total equity

Total liabilities and equity

All amounts in Indian Rupe�� millions

As at

30.09.2020 31.03.2020

(Unaudited) (Audited)

3,889 2,053

21,154 23,687

50,077 50,278

41,134 35,066

985 1,105

2,206 4,379

15,561 13,802

135,006 130,370

	55,026	52,332
	4,581	3,994
	40,972	27,659
	258	1,737
	2,961	2,763
	1,031	328
	12,657	12,214
	885	844
	118,371	101,871
"	253,377	232,241

22,833 16,659

19,852 16,441

815 4,266

3,885	3,800
1,156

597 1,602

10191

29,330 29,382

78,569 72,814

6,661 l,JU4

206 275

55	54
2,549	2,806
	9,471	4,439
88,040	77,253

831 83I

(1,048) (1,006)

8,792	8,495
1,269	1,233

173 173

1,059 -

152,458 144,247

1,803 1.015

165,337 154,988

253,377 232,241

•··

Dr.Reddy's �;•

13 Consolidated statements of cash nows

Particulars

Cash generated from operating activities:

Profit for the period

Adj11s/me111, for:

Incomc lax expense/(be11efit)

Fair value changes and profit on sale of units of mutual funds, net Depreciation and ammtization

Impairment ofnon-current assets

Allowance for credit losses and doubllul trade receivables and other advances

Loss on sale or de-recognition ofproperty, plant and equipment and other intangible assets, net Share of profit of equity accounted investees

Foreign exchange (gain)/loss, net Interest (ineome)/expense, net

Equity settled share-based paymenl expense Dividends income

Changes in operating assets and liabilities:

Trade and other receivables

Inventories

Trade and other payables

Oihcr assets and other liabilities, net

Cash generated from operations

Income tax paid, net

Net cash generated from operating activities

Cash nows from/(used in) investing activities:

Expenditure on property, plant and equipment

Proceeds from sale of property, plant and equipment

Expenditures on other intangible assets

Proceeds from sale of other intangible assets

Payment for acquisition of business

Purchase ofother investments

Proceeds from sale of other investments

Dividends received from equity accounted investees

Interest received

Net cash used in investing activities

Cash nows from/(used in) financing activities:

Proceeds from issuance of equity shares (including treasury shares)

Purchase oftreasury shares

Proceeds from/(repayment of) short-term borrowings, net

Proceeds from long-tenn borrowings

Repayment of long-term borrowings

Payment of principal portion of lease liabilities

Dividend paid (30 September 2019 including corporate dividend tax)

Interest paid

Net cash used in financing activities

Net increase / (decrease) in cash and cash equivalents

Effect of exchange rate changes on cash and cash equivalents

Cash and cash equivalents at the beginning of the period( ')

Cash and cash equivalents at the end of the period(2l

All amounts in Indian Rupees 111illio11s

lfalfyear ended

(Unaudited)	(Unaudited)
13,416	17,553
3,994	(1,389)
(389)	(562)
6,411	6,422
781	3,560
61	105
15	39
(150)	(280)
919	(29)
82	IOI
304	272
	(5)
1,620	(2,512)
(5,602)	(1.454)
4,773
910
(3,991)
872
22,244
(2.077)	(3,664)
20,167
(3,999)	(2,137)
33	53
(567)	(501)
	259
(15,514)	(69,304)
(50,933)
53,296	65,885
	392
714	461

177-·

1. (474)
   3,644 (2,012)
   3,800

(3,743)	(6,765)
(366)	(287)
(4,147)	(3,916)

1. (839)

754

1326

1,962 2,228

	*Rounded offto millions
	111 Adj
	usted/01 bank-ove,drafl of Rs 9/ million and Rs, Ni/for the halfyears ended 30 Sep/ember 2020 and 30 Sep/ember 2019, respectively.
	111 Adjusted for bank-overdraft of Rs. IOI million and Rs. 4 million for the halfyears ended 30 Seplembe,• 2020 and 30 September 20/9, respeclively.
14	The unaudited results were reviewed by the Audit Committee of the Board at their meeting held on 27 October 2020 and approved by the Board of Directors of the Company
	at their meeting held on 28 October 2020.
15	The results for the quarter and half year ended 30 September 2020 were subjected to a "Limited Review". An unqualified report was issued thereon.

By order of the Board

For Dr. Reddy's Laboratories Limited

Place: Hyderabad	G V Prasad
[,)ate: 28 October 2020	Co-Chairman & Managing Director

�A

��

Press Release	••·
Dr.Reddy's �;•

DR. REDDY'S LABORATORIES LTD.

CONTACT

INVESTOR RELATIONS

MEDIA RELATIONS

8-2-337, Road No. 3, Banjara Hills,	AMIT AGARWAL	APARNA TEKURI
Hyderabad - 500034. Telangana, India.	[e-mail]	[e-mail]
	(Ph: [phone])	(Ph: [phone])

Dr. Reddy's Q2 & Ht FY21 Financial Results

Hyderabad, India, October 28, 2020: Dr. Reddy's Laboratories Ltd. (BSE: 500124 I NSE: DRREDDY

• NYSE: RDY) today announced its consolidated financial results for the quarter and the half year ended September 30, 2020. The information mentioned in this release is on the basis of consolidated financial statements under International Financial Reporting Standards (IFRS).

Q2 Performance SummaryH1 Performance Summary

Rs. 4,897 Cr	Rs. 9,314 Cr
Revenue	Revenue
[Up: 11% QoQ; 2% YoY]	[Up: 8% YoYJ
53.9%	54.9%
Gross Margin	Gross Margin
[Q1 FY21: 56.0%; Q2 FY20: 57.5%]	[H1 FY20: 54.9%]
Rs.1,311 Cr	Rs. 2,589 Cr
SGNA expenses	SGNA expenses
[Up: 3% QoQ; Down: 1% YoYJ	[Up: 2% YoYJ
Rs. 436 Cr	Rs. 834 Cr
R&D expenses	R&D expenses
[8.9% of Revenues]	[9.0% of Revenues]
Rs. 1,267 Cr	Rs. 2,430 Cr
EBITDA	EBITDA
[Up: 9% QoQ; Down: 12% YoYJ	[Down: 5% YoYJ
Rs. 862 Cr	Rs. 1,741 Cr
Profit before Tax	Profit before Tax
[Down: 2% QoQ; Up: 12% YoYJ	[Up: 8% YoYJ
Rs. 762 Cr	Rs. 1,342 Cr
Profit after Tax	Profit after Tax
[Up: 32% QoQ; Down: 30% YoYJ	[Down: 24% YoYJ

*Q2 FY21 YoY sales growth of 20% adjusted for proprietary products out-licensing income in previous year

Commenting on the results, Co-chairman& MD, G V Prasad said "We are pleased to report continued growth across all the markets and improved productivity which is reflected in the healthy EBITDA margin and RoCE. Our research teams are working on several potential remediesfor COVID in addition to the already launched products."

1

All amounts in millions, except EPS

All US dollar amounts based on convenience translation rate ofI USD = Rs. 73.54

Dr. Reddy's Laboratories Limited and Subsidiaries

Consolidated Income Statement

		Particulars			Q2 FY21	Q2 FY20		YoY
		($)	(Rs.)	($)			(Rs.)		Gr %
	Revenues		666	48,967		653	48,009		2
	Cost of Revenues		307	22,558		277		20,389			11
	Gross Profit		359	26,409		376	27,620		(4)
	Operating Expenses
	Selling, General & Administrative		178	13,107		180	13,217		(1)
	expenses
	Research and Development		59	4,359		50		3,662		19
	expenses
	Impairment of non-current assets		11	781		48		3,560		(78)
	Other operating income		(2)	(149)		(2)			(135)		10
	Results from operating activities			113	8,311		99			7,316		14
	Net finance income			(3)	(237)		(3)			(231)		3
	Share of profit of equity accounted				(73)					(117)
		(1)		(2)				(38)
	investees
				8,621							12
	Profit before income tax			117		104		7,664
	Income tax			13	998					(3,261)		(131)
			(44)
	Profit for the period		104	7,623		149		10,925		(30)
I Diluted Earnings Per Share (EPS)	0.62	45.83		0.90	65.82		(30)
		As a % to revenues
		Gross Profit							53.9				57.5
		SG&A							26.8				27.5
		R&D							8.9				7.6
		EBITDA							25.9				29.9
		PBT							17.6				16.0
		PAT							15.6				22.8

Q1 FY21		QoQ
($)		(Rs.)		Gr%
601		44,175	11
264		19,420		16
337		24,755		7
174		12,786
		3
		3,980		10
(2)		(118)		26
110		8,107	3
(8)		(605)	(61)

1. (77) (5)

120	8,789	(2)
41	2,996		(67)
79	5,793		32
0.47	34.86	31

56.0

28.9

9.0

26.3

19.9

13.1

EBITDA Computation

		Particulars		Q2 FY21				Q2 FY20		Q1 FY21
		($)	(Rs.)	($)	(Rs.)		($)	(Rs.)
		Profit before Income Tax
		117	8,621	104	7,664		120	8,789
		Interest income (net)*	(0)	(1)			(3)	(226)		(4)	(306)
		Depreciation	30	2,188			31	2,306		29	2,120
		Amortization	15	1,084		14	1,033		14	1,020
		Impairment	11	781		48	3,560		158	11,622
		EBITDA						195	:t4p-37
		172	12,673	·�
		* Includes incomefrom Investments

2

All amounts in millions, except EPSAll US dollar amounts based on convenience translation rate ofI USO_,, Rs. 73.54

Key Balance Sheet Items

		As on 30thSep	As on 30thJun	As on 30thSep
Particulars			2020	2020		($)		2019
Cash and cash equivalents and other	($)			(Rs.)	($)				(Rs.)					(Rs.)
355			26,074	384		28,227		414				30,446
investments
Trade receivables (current & non-current)	684			50,335	657			48,316		573				42,153
Inventories	559			41,134	532		39,148		476			35,033
					55,026	737		54,183		721
Property, plant and equipment		748						53,008
Goodwill and Other Intangible assets		619			45,553	625		45,991		603		44,340
Loans and borrowings (current & non-current)	373			27,429	429			31,582		429			31,545
Trade payables	310			22,833	259		19,038		210			15,434
Equity	2,248			1,65,337	2,199		1,61,748		2,092	1,53,816

Revenue Mix by Segment

Particulars	Q2 FY21 I	Q2 FY20	YoY		Ql FY21
(Rs.)	(Rs.)	Growth%		(Rs.)
Global Generics	39,841		32,816	21%	35,075
			14,265	28%	17,282
North America	18,328
Europe	3,754		2,764	36%	3,551
India	9,123		7,511	21%	6,260
EM	8,636		8,276	4%	7,982
Pharmaceutical Services and Active	8,505		7,107	20%	8,553
Ingredients (PSAI)
Proprietary Products & Others	621		8,086	(92%)		547
Total	48,967		48,009	2%	44,175

Q2 FY21 Sales Mix

■ North America

■ Europe

■ India

■ Emerging Markets

PSAI

■ Proprietary Products &

Others

QoQ

Growth%

14%

6%

6%

46%

8%

(1%)

14%

11%

3

,1-

Cyber Attack Update

On 22nd October 2020, we experienced an information security incident and consequently isolated the impacted IT services. This incident involved a ransom-ware attack. We promptly engaged leading outside cybersecurity experts, launched a comprehensive containment and remediation effort and investigation to address the incident.

As of date, our investigation has not ascertained if any data breaches in the incident pertain to personally identifiable information stored in the Company's systems.

Recovery and restoration of all applications and data is underway. All critical operations are being enabled in a controlled manner.

COVID-19 Update

We continue our fight against the current pandemic by ensuring health and safety of our employees and business partners by adopting adequate precautionary m·easuresWe. continued our operations across plants enabling us to serve our patients across markets.

During the quarter we saw gradual recovery in the market demand across India, Russia and other markets after a low demand in Ql FY 21, although the demand is yet to fully recover to pre-covid levels.

We launched COVID-19 treatment drugs Avigan (Favipiravir) and Remdesivir. We further strengthened our development pipeline for COVID-19 treatment drugs including the vaccine candidate Sputnik V.

Revenue Analysis

Global Generics (GG)

Revenues from GG segment at Rs. 39.8 billion:

• Year-on-yeargrowth of 21% and sequential quarter growth of 14%, were driven primarily oh account of new product launches, volume traction in the base business and integration of the acquired business from Wockhardt in India.

North America

Revenues from North America at Rs. 18.3 billion:

• Year-on-yeargrowth of 28%, driven by contribution from new products launched, increase in volumes of our base products and aided by a favorable forex rate, which was partially offset by price erosion.
• Sequential growth of 6%, on account of volume traction in the base business and new product launches, offset by adverse forex movement and price erosion.
• We launched nine new products including Ciprofloxacin & Dexamethasone Otic Suspension, Fulvestrant Injection, OTC Diclofenac and OTC Olapatadine.
• We filed two new ANDAs during the quarter. As of 30th September 2020, cumulatively 94 generic filings are pending for approval with the�USFDA (92 ANDAs and 2 NDAs under S0S(b)(2) route). Of the 92 ANDAs, 50 are P,a,ra IVs aAa·we believe 26 have 'First to File' status.

4

Europe

Revenues from Europe at Rs.3.8billion:

• Year-on-yeargrowth of 36% and sequential growth of 6%, primarily on account of new product launches and favorable forex movement.
• We also forayed into a new country Austria, beyond our EUS markets.

India

Revenues from India at Rs. 9.1 billion:

• Year-on-yeargrowth of 21% and sequential growth of 46% is primarily on account of revenues from the acquired business of Wockhardt and contribution from new products including the Avigan (Favipiravir) and Remdesivir launched for treatment of Covid-19.

Emerging Markets

Revenues from Emerging Markets at Rs.8.6 billion. Year-on-year growth of 4%. Sequential growth of8%:

• Revenues from Russia at Rs. 4.0 billion. Year-on-year decline of 3% is primarily on account of weakening Ruble. Sequential growth of 22% contributed by increased volumes with a gradual recovery in market demand after Ql was impacted due to COVID-19.
• Revenues from other CIS countries and Romania market at Rs. 2.0 billion. Year-on-year growth of 19% and sequential growth of 43% driven by both base business and new product launches.
• Revenues from Rest of World (RoW) territories at Rs. 2.7 billion. Year-on-year growth of 7% driven by new products. Sequential decline of 20% is on account of lower volumes sold for existing products.

Pharmaceutical Services and Active Ingredients (PSAI)

Revenues from PSAI at Rs.8.5 billion:

• Year-on-yeargrowth of 20% driven by new products, growth in the services business and favorable forex rate.
• Sequential decline of 1% on account of lower volumes of certain products, partially offset by new products and growth in the services business.
• During the quarter we filed DMF for one product in the US.

Proprietary Products (PP) & Others

Revenues from PP & Others at Rs. 622 million:

• Year-on-yeardecline of 92%. Q2 FY 20 was higher due to income from sale of the US and select territory rights for two of Neurology franchise products pertaining to PP.
• Sequential growth of 14%.

5

Income Statement Highlights:

• Gross profit margin at 53.9%:

Decline of 360 bps over previous year, which was impacted due to inclusion of revenue from sale of Neurology franchise products in the previous year, partially offset by improvement in productivity and favorable forex rates. Sequentially the margin reduced by 210 bps, primarily on account of lower export incentives, adverse forex and product mix.

Gross profit margin for GG and PSAI business segments are at 59.4% and 26.8% respectively.

• SG&A expenses at Rs. 13.1 billion, reduced by 1% year-on-year due to certain one-off expenses last year, which was partly offset by incremental costs post the integration of the acquired ,divisions from Wockhardt in this year. Sequentially it increased by 3% primarily due to the integration of the acquired divisions from Wockhardt and pickup in sales & marketing activities post un-lock.
• R&D expenses at Rs. 4.4 billion. As % to revenues these are: Q2 FY21: 8.9% I Ql FY 21:
  9.0% I Q2 FY20: 7.6%. Our focus continues on building a healthy pipeline of new products across our markets including development of products pertaining to COVID-19 treatment.
• Other operating income at Rs. 149 million compared to Rs. 135 million in Q2 FY20.
• Net Finance income at Rs. 237 million compared to Rs. 231 million in Q2 FY20.
• Profit before Tax at Rs. 8.6 billion, increased by 12% year-on-year and reduced by 2% sequentially.
• Profit after Tax at Rs. 7.6 billion. The effective tax rate is~ 11.6% for the quarter, which is lower primarily due to recognition of deferred tax assets for one of our subsidiaries.
• Diluted earnings per share is at Rs. 45.83.

Other Highlights:

• EBITDA at Rs. 12.7 billion and the EBITDA margin is 25.9%
• Capital expenditure is at Rs. 2.5 billion.
• Free cash-flow generated during the quarter stood at Rs. 6.0 billion.
• Net debt of the company is at Rs. 1.4 billion as on September 30, 2020. Consequently, net debt to equity ratio is 0.01.

6

Earnings Call Details (05:30 pm 1ST, 08:00 am EDT, Oct 28, 2020)

The management of the Company will host an earnings call to discuss the Company's financial performance and answer any questions from the participants.

Conference Joining Information

Option 1: Express Join With DiamondPass™

Pre-register with the below link and join without waiting for the operator.

• ttps://services.choruscall. in/0iamondPassRegistration/register?confirmationNumber=512 2677&linkSecurityString=e52c5aa7d

Option 2: Join through below Dial-In Number

Universal Access Number:	[phone]
	[phone]
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No password/pin number is necessary to dial in to any of the above numbers. The operator will provide instructions on asking questions before and during the call.

Play Back: The play back will be available after the earnings call, till November 4th, 2020. For play

back dial in phone No: [phone] I [phone], and Playback Code is 97779.

Transcript: Transcript of the Earnings call will be available on the Company's website: www.drreddys.com

About Dr. Reddy's: Dr Reddy's Laboratories Ltd (SSE: 500124, NSE: DRREDDY, NYSE: ROY) is an integrated pharmaceutical company, committed to providing affordable and innovative medicines for healthier lives, Through its three businesses - Pharmaceutical Services & Active Ingredients, Global Generics and Proprietary Products - Dr Reddy's offers a portfolio of products and services including APls, custom pharmaceutical services, generics, biosimilars and differentiated formulations Our major therapeutic areas of focus are gastrointestinal, cardiovascular, diabetology, oncology, pain management and dermatology Dr Reddy's operates in markets across the globe Our major markets include - USA, India, Russia & CIS countries, and Europe For more information, log on to: www.drreddys.com

Disclaimer: This press release may include statements of future expectations and other forward-looking statements that are based on the management's current views and assumptions and involve known or unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements In addition to statements which are forward-looking by reason of context, the words "may", "will", "should", "expects", "plans", "intends", "anticipates", "believes", "estimates", "predicts", "potential", or "continue" and similar expressions identify forward-looking statements Actual results, performance or events may differ materially from those in such statements due to without limitation, (i) general economic conditions such as performance of financial markets, credit defaults , currency exchange rates , interest rates , persistency levels and frequency / severity of insured loss events (ii) mortality and morbidity levels and trends, (iii) changing levels of competition and general competitive factors, (iv) changes in laws and regulations and in the policies of central banks and/or governments, (v) the impact of acquisitions or reorganization , including related integration issues, (vi) the susceptibility of our industry and the markets addressed by our, and our customers', products and services to economic downturns as a result of natural disasters. epidemics, pandemics or other widespread illness, including coronavirus (or COVID-19). and (vii) other risks and uncertainties identified in our public filings with the Securities and Exchange Commission, including those listed under the "Risk Factors" and "Forward-Looking Statements" sections of our Annual Report on Form 20-F for the year end_ed March 31, 2020 The company assumes no obligation to update any information contained herein

7

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•••

Dr.Reddy's �;•

Dr. Raddy's Laboratories Ltd.

8-2-337, Road No. 3, Banjara Hills,

Hyderabad - 500 034, Telangana,

India.

CIN: L85195TG1984PLC004507

Tel	:+91 40	4900 2900
Fax	:+9140	4900 2999

Email :[e-mail] www.drreddys.com

DR. REDDY'S LABORATORIES LIMITED

STATEMENT OF UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30 SEPTEMBER 2020

	Particulars
SI, No.	30.09.2020
		(U,wudlu•d)

• Revenue from operations

	a) Net sales / income from operations	47;766
	b) License fees and service income	1,201
	c) Other operating income		142
2	Total revenue from operations		49,109
Other income		512
3	Total income (I+ 2)	49,621

• Expenses

		a) Cost ofmaterials consumed	9,485
		b) Purchase ofstock-in-trade	6,889
		c) Changes in inventories of finished goods, work-111-progress		(573)
		and stock-in-trade
		d) Employee benefits expense		9,488
		c) Dcp1cciation and amortisation expense		3, I 65
		fJ lmpainnent ofnon-cunent assets	781
		g) finance costs		252
		h) Selling and other expenses		11,478
		Total expenses		40,965
5		Profit/ (loss) before tax and before share of equity accounted		8,656
		iuvc�tcc�f3 - 4)

O1u11·1cr ended

30.06.2020

(llmwdltc,I)

43,244

931

90

44,265

871

45,136

11,439

5,276

(3,519)

8,724

2,923

-

233

11,132

36,208

8,928

30.09.2019

(tlnnudi1cd)

39,982

8,026

120

48,128

540

48,668

7,503

5,942

566

8,255

3,131

3,560

303

11,664

40,924

7,744

All amounts in Ind'rnn R
l·l:it( veitr ended		Vcnr c11dcd
30.09.2020		30.09.2019		31.03.2020
(Unaudited)								(tlm1udilcd)		(Audllcll)
91,010		77,606		163,574
2,132		8,838		11,026
232					266		570
93,374					86,710		175,170
1,383					4,837		6,206
94,757		91,547		181,376
20,924								29,848
				14,867
12,165						11,158		25,459
(4,092)					55		237
18,212								16,870		33,802
6,088						6,021		11,631
781						3,560		16,767
485						601		983
22,610				22,141		44,353
77,173					75,273		163,080
17,584							16,274		18,296

6	Shnre of profit of equity nccounted investees, net of tax	73
7	Profit before tnx (5+6)	8,729

• Tax expense / (benefit):

		a) Current tax	1,724
9		b) Deferred lax	(713)
	Net profit after taxes and shnre of profit of associates (7 - 8)	7,718
		Other comprehensive income
		a) (i) Items that will not be reclassified subsequently to profit or loss	(26)
		(ii) lncome tax relating lo items that will not be reclassified	-
		to profit or loss	258
		b) (i) llems that will be reclassified subsequently to profit or loss
		(ii) Income tax relating to items that will be reclassified	(138)
		to profit or loss
		Total other comprehensive income	94
		Total comprehensive income (9 + 10)	7,812
12		Paid-up equity share capital (face value Rs 5/- each)	831

1. Other equity
2. Earnings per equity share (face value Rs. 5/- each)

Basic	46.54
Diluted	46.40
See accompanymg notes to the financial results	(1'./01 a111111a/ised)

77

9,005

3,166

(107)

5,946

207

-

731

(156)

782

6,728

831

35 87

35.78

(Not ammali.red)

I 17	150		280	561
7,861		17,734		16,554	18,857
2,108				4,463	6,616
	4,890
(5,315)		(820)		(5,742)	(8,019)
11,068		13,664		17,833		20,260
161		181		114		(412)
-		-		-		(22)
226		989		(43)		(441!)
65		(294)		88		232
452				159		(650)
	876
11,520		14,540			17,992		19,610
831		831			831	831
							155,157
66,78							122 22
	82 40			107 59
66.68		82 18			107.40		121 99
(Not aJ11111a/i.fed)		(Not annualised)		(Nol amwa/ised)

•••

Dr.Reddy's �;•

sL'!!llll'III l11 onnat1on						All CltH(HllllS fn I 11(I"mu I{ Ul)CC"" 1111 1011S
SI. No.	Particulars	30-09.2020	Quarler ended				HalfycH r ended	Year ended
30.06.2020			:l0,U9.2Ul9	30.09.2020	30.09.2019				31.03.2020
�	Segment wise revenue and results:	(Unaudited)	(Unaudited)			(Unaudited)	(Unaudited)				(Unaudited)			(Audited)
I	Segment revenue :	10,355	10,165		8,598	20,520		14,650				32,086
	a) Phamiaceulical Se1vices and Aclive Ingredients
	b) Global Generics	39,882	35,092		32,838	74,974		65,848				138,264
	c) Proprietaiy Producls	100	56		7,425	156		7,706				7,949
	d) Olhcrs	523	489		662	1,012		1,295				2,781
	Total	50,860	45,802		49,523	96,662		89,499				181,080
		1,751	1,537		1,395	3,288		2,789				5,910
	Total revenue from operations	49,109	44,265		48,128	93,374		86,710				175,170
2	Segment results:
	G1oss profil fiom each segment	2,292	2,859		1,758	5,151				2,090				6,219
	a) Phannaceulical Se,vices and Aclive Ingredients
	b) Global Generics	23,685	21,526		18,200	45,211				37,207				78,449
	c) Proprietary Products	88	56		7,298	669				7,505				7,744
	d) Olhers	352	317		372				692				1,626
	Total	26,417	24,758		27,628	51,175				47,494				94,038
	Less: Selling and othc, un-allocablc expenditure/	17,688	15,753		19,767	33,441				30,940				75,I 81
	(income), net	8,729	9,005		7,861	17,734			16,554				18,857
	Total profit before tax

As ce11ain assels of lhe Company including manufacluring facilities, developmenl facililies and t1easury assels and liabilities are oflen deployed interchangeably across segmenls, it is impractical to allocate these assets and liabilities lo each sebsnent Hence, lhe delails for capilal employed have nol been disclosed in the above table.

Noles:

These 1esults have been prepared in accordance with the Indian Accounting Standards (Ind AS) nolified under Section 133 of the Companies Act, 2013, read with the Companies (Indian Accounting Slandards) Rules 2015 as amended

2 On 10 June 2020, lhe Company completed the acquisilion of select divisions of Wockhatdt Limiled's branded generics business in India and lhe lerritories of Nepal, S,i Lanka, Bhutan and Maldives The business comprises a portfolio of 62 b1ands in multiple therapy areas, such as respiraloiy, neuro!Ob'Y,venous malformations, dennalology, gastroenlerolob'Y, pain, and vaccines This entire portfolio has been transferred to the Company, nlong wilh related sales and ma,keting teams, the manufacturing plant located in Baddi, Himachal Pradesh, and employees During the quarter ended 30 September 2020, the Company compleled the purchase price allocation The fair value of consideration lransfened is Rs,16,115 million. The Company recobs1ised Rs 373 million, Rs, 14,888 million and Rs, 530 million towards property, planl and equipment, intangible assets, and goodwill, respectively The acquisition pertains to Company's Global Generics sebsnent

• lmpainnent charge of Rs, 781 million for the quarter ended 30 September 2020 comprises of:
• • Rs. 728 million pertaining to product related intangible fanning part ofCompany's Proprietary Segment due to decrease in the market potential for the product;
  • Rs, 53 million pertaining to certain product related intangibles fanning part ofCompany's Global generics Segment due to Company's decision to discontinue their further development

• Tax expense for the quarter ended 30 September 2020 includes benefit on account of recob'Tlition ofdeferred tax asset amounting to Rs. 1,012 million pursuant lo a planned restrucluring aclivity between the Group companies,

• "Revenue from operations" for lhe quarter ended 30 September 2019 and year ended 31 March 2020 includes an amount ofRs 7,229 million (U,S.$105.1 million) and Rs. 7,486 million (U S $108 7 million), respectively, towards license fee for selling US and se!ecl territory rights for ZEMBRACE"' SYMTOUCH00 (sumatriplan injection) 3 mg and TOSYMRA00 (sumatriplan nasal spray) 10 mg, (formerly referred to as "DFN-02") lo Upsher-Smith Laboratories, LLC. The costs associaled with Ihis transaclion are Rs 328 million

• "Other income" for the half year ended 30 September 2019 and year ended 31 March 2020 includes an amount of Rs 3,457 million received from Celgene, pursuant to a settlement agreement entered in April 2019 The agreement effectively settles any claim the Company or its affiliates may have had 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 REVLIMID brand capsules, (Lenalidomide) pending befoie Heallh Canada

• Total impainnenl charge for lhe year ended 31 March 2020 is Rs. 16,767 million, of which Rs 11,137 million was towards impainnent of gNuvaring, Rs 4,385 million was towards ramelteon, 1obrmnycin and imiquimod, and the balance is lowards other product ,elated intangibles fanning part of Company's Global generics and Proprielary Producls segmenls.

• Tax benefit for the year ended 31 March 2020 was primarily due to recob'Tlilionofdeferred tax asset of:
• • Rs. 4,989 million towards MAT recoverable pursuant to enaclment of Taxation Laws (Amendment) Act, 2019;
  • Rs_ 1,264 million pursuant to a planned restructuring activity between the b'foupCompanies.

• On 22 October 2020, the Company infonned the stock exchanges that it had experienced an infonnation security incident and consequent isolalion of impacted IT services. This incident involved a ransom-ware attack. The Company promptly engaged leading outside cybersecurity experts, launched a comprehensive containment and remediation effort and investigation to address the incident As of date, the Company's investigation has nol ascertained if any data breaches in lhe incident pertain to personally identifiable infonnalion stored in lhe Company's systems, Recovery and restoration ofall applicalions and data is underway. All critical operalions are being enabled in a controlled manner,

IO The Company continues to consider lhe impact of COYID-19 pandemic in assessing the recoverability of receivables, goodwill, intangible assets, and certain investments. Fm this purpose, the Company considered inlemal and external sources of infonnation up 10 lhe date of approval of these financial results The Company based on its judgements, estimates and assumplions including sensitivity analysis 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 lo future economic conditions

11 The Board of Direclors have also give their in principle approval for the polenlial secondary listing of American Depository Receipts (ADRs) on NSE IFSC Limiled (NSE International Exchange) subject to compliance of applicable laws and approval of concerned authorities.

•··

Dr.Reddy's �;•

DR. REDDY'S LABORATORIES LIMITED

12 Cun,olldalctl Balance Sheet

Particulars

ASSETS Non-current assets Property, plant and equipment Capital wm k-in-progressGoodwill

Other intangible assets

Intangible assets under development Investment in equity accounted investees Financial assets

lnveshnents Trade receivables Olher financial assets

Deferred tax assets, net Tax assets, net

Other non-current assets

Total non-current assets

Current assets

Jnventories

Financial assets

Investments

Trade receivables

Derivative instmments

Cash and cash equivalents

Other financial assets

Other current assets

Total current assets

TOTAL ASSETS

EQUITY AND LIABILITIES

Equity

Equity share capital

Other equity

Total equity

Liabilities

Non-current liabilities

Financial liabilities

Borrowings

Provisions

Deferred tax liabilities, net

Other non-current liabilities

Total non-currerit liabilities

Current liabilities

Financial liabilities

Borrowings Trade payables

Total outstanding dues ofmicro enterprises and small enterprises

Total outstanding dues of creditors other than micro enterprises and small enterprises Derivative instnnnents

Other financial liabilities Liabilities for current tax, net Provisions

Other current liabilities

Total current liabilities

TOTAL EQUITY AND LIABILITIES

All amounts 111 Indian Run�.:s millions A.sat

30.09.2020 31.03.2020

(Unaudited) (Audited)

47,423 47,779

7,3144,364

5,6264,913

29,545 15,81 I

10,849 10,987

2,9612,763

1,03 I328

1. 1,737

1. 793

12,647 12,199

2,1964,379

379209

121.002 106.262

41,134 35,067

21,154 23,687

50,077 50,278

9851,105

3,8892,053

2,8103,377

12,751 10.424

132,800 125,991

253,802	232.253
83 I	831
165,843	155.157
166,674	155.988
6,661	1,304
618	745
25	20
1,817	2,055
9,121	4,124
19,953	16,532
30	55
19,993	15,193
597	1,602
24,352	27,006
1,142	572
4,660	4,669
7280	6 ,p
78,007	72,141
253,802	232,253

S.R. BATLIBOI & ASSOCIATES LLP

r,e,.fb,r-. lȢ!l Tdlil Ptr No. -4

...... - Sala,

f� 0-:nnmi-'100 11l lrdiA

• r1-

lndtpend

Re•lew Repon to

Tb• Board or Directors

Dr. Redd�·s Laboratories Umitrd

1. We h;ave re,,ewed the accompanym¥ )blc-mtru of uoaudi1cd :tlandaJorn: financial results ofd."•Dr R,ddy'i uboralon•• Limited(Ilic "Company") for lhc Quarter ended September 30. 2020 ond )catto fromApnl

01. 2020 10 Scp1cmbcr 30. 2020 (lhc "StotZO IS, as lU'llfflded (lhc "LosimgRC¥Ulu110ns"').

2. Tiu$ S101-,mcnt. wh,ch IIlh< rcspoo.,1b1hl) ol1hcCompany'• lanagcmcnl Ind appro-.d by the Compw,y's Boord ofDirector,. hJt been pnep.m:d in occord>nl..., w,1h 1hc rccognmon IIJ1d mcuun:mem pnnc,plN hud d<1wn In lml1•n Am•un11n1 S1ondanl )�. (Ind •S 34) "ln1cnm f1n•oc1al Repurt1ni" pre.1pnnc1ple-• grncnally 1"-ccptN m lnd1o1 O ur tt'I.J'Qmibtht)' 1a 10 ,;'.(prti• 11 c:ondu,aon on thc­ St.itcmrn1 b.t1N 011 041r r'"H:W

• We cunc.hwtcd uur ""''e"" ot the Sl.ttt>mc-nl,n m�cordanc.:c with the t.u11J.1td L•n HClk"W I.ni.t,t�"1:1nc11lJ rSRfI 2-1 IU. Review uf ln1er1m Finunc1•l lnfunno11on Performed b) lhc fndq,cndcn1 Auduor oflhc£o111y" ,siucd by th• ln,11m1c ol Cll.,ncrcJAm,unlanl< al Ind•• Th•• ,tondarJrequm,o 1ho1 "' plan ,nd perform the rt,c'"' tu obtain mudc:rat.: 11»ur.1n,c .u tu whcth<:r the Swtt:mi.-nt 1111 tree ot nut.cri.tl m1A,fU!tcmcn1. A ""1ew or 1n1cnm fin.11,c1al mforma11on wn..,,u ot m.1lunai 1nqu1nc..., prunanly ofr,cr,,oru rNporu:1blc for nn.1nc111I l1'1J •�cuuntin1 mancn, nnd 11pplying 11n,1lyual 1n.J othtt rc:tciw J)r(k.-tJuret A rev,�· •• 1ub,1anually k.- ,n "'�J'I' th•n on 1uJ1t «•nduthat might b, 1Jrn11rtetl 1n an audu Acconllllgly, we tlo not apm11111 iudtt op1mon.

• 8bed on our re_,·[ew conductedullOO'le. nothini h�comc h) our o:ncnhOo lhll causesu1 co bcl1C-c that the ooro,npanying S18temcn� pn:pITIC'.. unemcn1 pnnc,plc, bud down in1he afoi,,sa,d lnd1:i.nAccoun1JngS1UOdotd$('lnd AS')spccificd undd11Cl-.i ,n term• of the LtSllng ReguJauons. iocJudmgtbcmanncran which II JSh> bed1scfosed...ortha1.1t cont11.ms anymata-nll m1.sstatemcm..

For S.R. BATLIBOI & ASSOCIATES LLP

Cbaru,red Ac<>

ICAI��Firm:regisiro.:lon...numbor: 101049W'E3QOOO.I

M

UDIN: 2005.1315AAAACW5088

Place: CheMa,

Dato: October 28, 2020

,. �1---.llhflJJ' •........	,l_.,.,,.,_.......	,.u,p•flltJ'- �:ti
.... Mflt, ),1 _,,... ..._._ W Nt...	•---- fl'lltH

•··

Dr.Reddy's �;•

Dr. Reddy's Laboratories Ltd.

8-2-337, Road No. 3, Banjara Hills,

Hyderabad - 500 034, Telangana,

India.

CIN: L85195TG1984PLC004507

Tel	:[phone]
Fax	:[phone]

Email :[e-mail] www.drreddys.com

DR. REDDY'S LABORATORIES LIMITED

STATEMENT or UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND HALr YEAR ENDED 30 SEPTEMBER 2020

SI.		Particulars			Quartcr ended	30.09.2019
	30.09 .2020	30.06.2020
No.
					(Unaudited)
			(Unaudited)	(Unaudited)
l		Revenue from O)erations
		l

All amoun s rn Ind'ian RtqU,j:"� 1111 1011S

Hair Year ended	Year ended
30.09.2020	30.09.2019		31.03.2020
(Unaudited)	(Unaudited)		(Audited)

	a) Net sales / income from operations	33,233	32,264	27,039
	b) License fees and service income	103	104	7,314
	c) Other operating income	122	76	107
	Total revenue from operations	33,458	32,444	34,460
2	Other income	266	6,447	767
	Totalincome (1 +2)	33,724	38,891	35,227
3	Expenses
	a) Cost ofmaterials consumed	8,165	7,882	6,453
	b) Purchase of stock-in-trade	3,043	3,003	2,971
	c) Changes in inventories offinished goods, work-in-progress			5
	and stock-in-trade	(1,358)	(1,929)
	d) Employee benefits expense	6,080	5,450	5,028
	e) Depreciation and amortisation expense	2,142	1,977	2,041
	f) Finance costs	93	140	122
	g) Selling and othe, expenses	9,362	8,751	8,395
	Total expenses	27,527	25,274	25,015
4	Profit before tax(1 + 2 - 3)	6,197	13,617	10,212

• Tax expense/ (benefit)

		a) Current tax	1,114	7,191		l ,179
		b) Deferred tax	273	1,724	(4,968)
6		Net profit for the period/ year(4 - 5)	4,810	9,502	13,651
7		Other comprehensivc income	-
		a) (i) Items that will not be reclassified to profit or loss	(!)	(5)
		(ii) Income tax relating to items that will not be reclassified	.
		to profit or loss
		b) (i) Items that will be reclassified to profit or loss	420	360	(187)
		(ii) Income tax relating to items that will be reclassified to			65
		profit or loss	(157)	(128)
		Totalother comprehensive income	263	231	(127)
8		Total comprehensive income (6 + 7)	5,073	9,733	13,524
9		Paid-up equity share capital (face value Rs 5/- each)	831	831	831
10		Other equity
11		Earnings per equity share ( face value Rs. 5/- each)
		Basic	29 00	57.31	82.36
		Diluted	28.92	57.18	82.24
			(Not annualised)	(Nol annuali.'led)		(Not annualised)
		See accompanymg notes to the financial results.

65,497

207

198

65,902

6,593

72,495

16,047

6,046

(3,287)

11,530

4,119

233

17,993

52,681

19,814

.'l,S0S

1,997

14,312

(1)

780

(285)

494

14,806

831

86,31

86 08

(Not annualised)

51,866	109,925
7,463	8,105
218	474
59,547	118,504
5,481	7,432
65,028	125,936
12,292	25,565
5,450	11,172
(670)	(999)
10,024	20,302
4,011	7,892

243 478

16,536 33,768

47,886 98,178

17,142 27,758

3,0S7 4,R39

(5,047) (6,458)

19,132 29,377

1. 88

.

(33)

1. (750)

85 259

1. (436)

18,965 28,941

831 831

151,088

l I 5.42	177.23
115 21	176,88

(Not annualised)

•··

Dr.Reddy's �;•

s. cgmt.!111 m. formation

SI.	Particulars
No.

Segment wise revenue ant.I results

• Segment revenue
• 1. Pha,maceutical Services and Active Ingredients
  2. Global Gene,ics
  3. Prop,ieta,y P,oducts

Total

Less: lnter-SCb'lncnt revenue

Total revenue from operations

• Segment results
  Profit/ (loss) before tax and inte,est from each seb"Tient
• 1. Phannaceutical Services and Active Ingredients
  2. Global Generics
  3. Proprietary P, oducts

Total

Less: (i) Finance costs

1. Othe, un-allocable expendit111e/ (income), net
   Total profit before tax

DR. REDDV'S LAllORATORlf.S LIMITl,;D

									All	I d 1a11 R Ull:l.!S 1111·111011s
		Quarlcr ended					Half Year	ended	Year ended
30.09.2020		30.06.2020			30.09.2019			30.09.2020		30.09.2019		31.03.2020
(llnaudited)	(Unaudited)		(Unaudited)			(Unaudited)		(Unaudited)	(Audited)
7,996		8,706			6,900			16.702		I 2,517	26,996
27,112		25,241			21,659			52,353		42,487	89,774
IOI	34			7,296			135		7,332	7,644
35,209		33,981			35,855	69,190		62,336	124,414
1,751		1,537			1,395		3,288		2,789	5,910
33,458		32,444			34,460		65,902		59,547	118,504
					494
145		5,686			5,831		70	1,465
5,674		8,242			3,910			13,916		11,720	22,116
(281)	(174)	6,807			(455)		6,530	6,525
5,538		13,754				11,21 I			19,292		18,320	30,106
93		140			122			233		243	478
(752)	(3)	877			(755)		935	1,870
6,197		13,617			10,212		19,814		17,142	27,758

Global Generics includes operations of Biologics business lnter-segrTient revenue represents sale from PhanTiaceutical Services and Active Ingredients to Global Generics at cost

Segmental capital employed

As certain assets of the Company including manufactu,ing 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 employedhave not been disclosed in the above table.

Notes:

• These results have been p1epa1ed in accordance with the Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013, read with the Companies (Indian Accounting Standards) Rules 2015 as amended,

2 On 10 June 2020, the Company completed the acquisition of select divisions of Wockhardt Limited's branded generics business in India and the territories of Nepal, Sri Lanka, Bhutan and Maldives, The business comprises a portfolio of 62 brands in multiple therapy areas, such as respiratory, neurology, venous malfonTiations, dennatology, gastroenterolob'Y,pain, and vaccines, This entire portfolio has been transferred to the Company, along with ,elated sales and marketing teams, the manufacturing plant located in Baddi, Himachal Pradesh, and employees, Dming the quarter ended 30 September 2020, the Company completed the purchase price allocation The fair value of consideration transferred is Rs 16,115 million The Company recognised Rs 373 million, Rs, 14,888 million and Rs. 530 million towards property, plant and equipment, intangible assets, and goodwill, respectively. The acquisition pertains to Company's Global Generics segrnent

• Consequent to the company's decision to discontinue the development of certain product related intangibles in the Company's Global Generics segment, an amount of Rs 53 million is recogr,ised as impainTient charge for the quarter ended 30 September, 2020

• "Other income" for the quai1er ended 30 June 2020 includes
• • Rs. 4,772 million received from Aurigene Phannaceutical Services limited (APSL) during the quarte, ended 30 June 2020, pursuant to sale of the contract development and manufacturing organisation (COMO) division of the Custom Phannaceutical Services (CPS) business of the Company
  • Rs 516 million receipt of prefe,ence dividend declared by Dr Reddy's Laboratories S.A during the quarter.

• "Revenue from operations" for the quarter ended 30 September 2019 and year ended 31 March 2020 includes an amount of Rs. 7,229 million (U.S.$105,1 million) and Rs, 7,486 million (U S,$I08,7 million), respectively, towards license fee for selling US and select territory rights for ZEMBRACE"' SYMTOUCH"' (sumatriptan injection) 3 mg and

TOSYMRA" (sumat,iptan nasal spray) IO mg, (fonnerly referred to as "DFN-02") to Upsher-Smith Laboratories, LLC The costs associated with this transaction are Rs. 328 million.

6 "Other income" for the halfyear ended 30 September 2019 includes dividend income of Rs, 392 million declared by Kunshan Rotam Reddy Phannaceutical Company Limited

• "Other income" for the half year ended 30 September 2019 and year ended 31 March 2020 includes an amount of Rs 3,457 million received from Celgene, pursuant to a settlement agreement entered in April 2019. The agreement effectively settles any claim the Company or its affiliates may have had 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 REVLIMID brand capsules, (Lenalidomide) pending before Health Canada,

• During the quarter ended 30 September 2019, the Government of India promulgated the Taxation Laws (Amendment) Ordinance 2019 (enacted into Taxation laws (Amendment) Act 2019), announcing key changes to corporate tax rates in the Income-tax Act, 1961. The key changes include, among others, reduction of MAT rate from 21 55% to 17 47% (including surcharge and cess), As a result of this, the Company reassessed the MAT recoverability and recognised an amount of Rs. 4,989 million as defeffed tax asset during the quarter ended 30 September 2019,
  During the year ended 31 March 2020, the Company recognised deferred tax benefit of Rs, 1,264 million pursuant to a plan for restructuring of the Company's phannaceutical services in India

• On 22 October 2020, the Company infonned the stock exchanges that it had experienced an infonnation security incident and consequent isolation of impacted IT services, This incident involved a ransom-ware attack, TI,e Company promptly engaged leading outside cybersecurity experts, launched a comprehensive containment and remediation effort and investigation to address the incident, As of date, the Company's investigation has not ascertained if any data breaches in the incident pertain to personally identifiable infonnation

stored in the Company's systems Recovery and restoration ofall applications and data is underway, All critical operations are being enabled in a controlled manner.

10 The Company continues to consider the impact of COVID-19 pandemic in assessing the recoverability of receivables, goodwill, intangible assets, and ce11ain investments For this purpose, the Company considered internal and external sources ofinfonTiation up to the date of approval ofthese financial results. The Company based on its judgements, estimates and assumptions including sensitivity analysis expects to fully recover the canying amount of receivables, goodwill, intangible assets, investments and other assets The Company will continue to closely monitm· any material changes to future economic conditions.

11 The Board of Directors have also give their in principle approval for the potential secondary listing of American Depositmy Receipts (ADRs) on NSE IFSC Limited (NSE Intemational Exchange) subject to compliance of applicable laws and approval of concerned authorities

			•··
Dr.Reddy's �;•
			DR. REDDY'S LABORATORIES LIMITED
	a anee s	ee	t	All amounts m. Ind'rnn	{IIIH!C..' ITII 1011S
	h
			Particulars		As at				As at
							31.03.2020
	ASSETS				(Unaudited)			(Audited)
	Non-current assets
	Property, plant and equipment		35,659
	Capital work-in-progress
	Goodwill
	Other intangible assets
	Intangible assets under development
	Financial assets
	Inveshnents
	Trade receivables
	Loans
	Other financial assets
	Deferred tax assets, net
	Tax assets, net
	Other non-current assets					138
	Total non-current assets		104,944			93.691
	Current assets
	Inventories
	Financial assets
	Investments
	Trade receivables
	Derivative instruments
	Cash and cash equivalents
	Other financial assets					1,888
	Other current assets
	Total current assets
	TOTAL ASSETS
					194.758
	EQUITY AND LIABILITIES
	Equity
	Equity share capital
	Other equity
	Total Equity			162,868
	Liabilities
	Non-current liabilities
	Financial liabilities
	Borrowings
	Provisions							545
	Other non-current liabilities
	Total non-current liabilities		1,066			1,034
	Current liabilities
	Financial liabilities
	Borrowings
	Trade payables
	Total outstanding dues of micro enterprises and small enterprises					55
	Total outstanding dues ofcreditors other than micro enterprises and small enterprises
	Derivative instruments
	Other financial liabilities
	Provisions
	Other current liabilities
	Total current liabilities		50,798			41,805
	TOTAL EQUITY AND LIABILITIES
		214,732			194,758

•··

Dr.Reddy's �;•

DR. REDDY'S LABORAT01m:s LIMITED

13 Statement of cnshtlnw&

Particulars

Cash nows from/(used in) operating activities

Profit before taxation

,1,liu,tments for:

Depreciation and amm1isa1ion expense

Jmpainnent of non current assets

Equity seltled share-based payment expense

Fair value changes and profit on sale ofmutual funds, net Foreib'" exchange loss / (gain), net

(Gain)/loss on sale/disposal ofproperty, plant and equipment and other intangible assets, net

Finance costs

Dividend income

Allowances for credit losses and doubtful advances, net

Changes in operating assets and /iahilities:

Trade receivables

lnventories

Trade payables

Other assets and other liabilities, net

Cash generated from operations

Income taxes paid, net

Net cash from operating activities

Cash nows from/(used in) investing activities

Proceeds from sale ofproperty, plant and equipment

Expenditures on prope11y, plant and equipment

Expenditures on other intangible assets

Payment for acquisition of business

Purchase ofother investments

Proceeds from sale ofinvestments

Loans and advances (given) /repaid by subsidiaries

Dividend received

Interest received

Net cash used in investing activities

Cash flows from/(used in) financing activities

Proceeds from issuance ofequity shares (including treasury shares)

Purchases oftreasury shares

Proceeds from/(repayment of) short-term loans and borrowings, net

Repayment oflong-tenn loans and borrowings

Payment ofprinciple portion oflease liabilities

Dividend paid (30 September 2019 including corporate dividend tax)

Interest paid

Net cash used in financing activities

Net increase/ (decrease) in cash and cash equivalents

Effect ofexchange rate changes on cash and cash equivalents

Cash and cash equivalents at the beginning of the year11>

Cash and cash eauivaknt� al the end of the vea/2>

•ua,111d,,1 ,1ff111 ,1111/tm,.t.

f/J A//imtedfor bank overdrq(I ofRs I milli on and Rs. Nil for ha(fyear ended 30 September 2020 and ha(fyear ended 30 September 2019 re.,pectively. r1J A//imtedfvr bank overdrq(I qiRs. Nil and Rs. � million for ha(fyear ended 30 September 2020 and ha(fyear ended 30 September 2019 respectively.

HaIf vear ended

30.09.2020 30.09.2019 (Unaudited) (Unaudited)

19,814		17,142
4,119		4,01 I
53	-

304 273

(353)

(518)

1. 92

(4,733)

81

1. (489)

233 243

(�16) (397)

41 64

136	(5,715)
		(4,984)	(1,436)
		4,844	476
23	(468)
18,379	13,359
(1.387)	(2.080)
	16,992			II 279
4,890	2
		(3,439)	(1,915)
		(438)	(362)
		(15,514)
		(48,769)	(66,982)
		49,763	64,133
		-	(10)
		516	392
		693	402
		(12,298)	(4,340)
		177		-·
		(190)		(474)
		5,491		(2,006)
		(3,743)		(94)
		(90)		-
		(4,147)	(3,914)
		(284)	(246)
		(2 786)	(6 734)
1,908	205
(17)		(2)
	391		1,132
2,282		1.335

1. The unaudited results were reviewed by the Audit Committee ofthe Board at their meeting held on 27 October 2020 and approved by the Board ofDirectors ofthe Company at their meeting held on 28 October 2020.
2. The results for the quarter ended 30 September 2020 presented were subjected to a "Limited review" by the Statutory Auditors ofthe Company An unqualified report was issued by them thereon.

	By order ofthe Board
	For Dr. Reddy's Laboratories Limited
Place Hyderabad	Wv,..a

Date: 28 October 2020

Co-Chainnan & Managing Director

•··

Dr. Reddy's �;•

DR. REDDY'S LABORATORIES LIMITED

13 ('u11solhln1ml statement of cashnows

Particulars

Cash flows from/ (used in) operating activities

Profit before tax

A,:fjust111ents for:

Deprecialion and amortisation expense Share ofprofit ofequity accounted investees lmpainnent ofnon-current assets

Equity settled share-based payment expense

Fair value changes and profit on sale ofunits of mutual funds, net Foreign exchange loss/ (gain), net

(Gain)/ loss on sale or de-recognition ofproperty , plant and equipment and other intangible assets, net lnleresl income

Finance costs Dividend income

Allowance for credit loss and doubtful trade and other advances Change., in operating assets and liabilities:

Trade receivables

Inventories Trade payables

Other assets and other liabilities, net

Cash generated from operations

Income tax paid, net

Net cash from operating activities

Cash flows from/ (used in) investing activities

Proceeds from sale ofproperty, plant and equipment

Proceeds from sale ofother intangible assels

Expenditures on property, plant and equipment

Expenditures on other intangible assets

Payment for acquisition ofbusiness

Purchase ofother inveshnents

Proceeds from sale ofother investments

Dividends received from equity accounted investees

Interest received

Net cash used in investing activities

Cash flows from/ (used in) financing activities

Proceeds from issuance ofequity shares (including treasury shares)

Purchase oftreasury shares

Proceeds from/ (repayment of) short-tenn loans and borrowings, net

Repayment oflong-term loans and borrowings

Proceeds from long tenn borrowings

Payment ofprincipal portion oflease liabilities

Dividend paid (30 September 2019 including corporate dividend tax)

Interest paid

Net cash used in financing activities

Net increase/ (decrease) in cash and cash equivalents

Effect ofexchange rate changes on cash and cash equivalents

Cash and cash equivalents at the beginning ofthe yea/'1

Cash and cash equivalents at the end of the year1''

•Rounded ofllo millions

(}/Acijus/ed_for bank-overdraft ofRs. 91 million and Rs. Nil forlhe ha(fyears ended 30 Sep/ember 2020 and 30 September 2019, respeclil'ely.

121Adjus/ed_for bank-overdraft ofRs. IOI million and Rs. .J million fur /he ha(fyears ended 30 Sep/ember 2020 and 30 September 2019, respeclively.

All amounts m Indian R,uecs millions

Half vear ended

30,09,2020 30.09.2019 (Unaudited /Unaudited

17,734 16,554

6,088

6,021

1. (280)
   781 3,560

304	273
(389)	(562)
918	(19)
!5	39
(403)	(500)
485	60!
6!	(5)
105
1,620	(2,512)
(5,602)	(1,454)
4,773	910
(3.991)	872
22,244	23,603
(2,077)	(3.664)
20,167	19,939
33	53
(3,999)	259
(2,137)
(567)	(501)
(15,514)
(50,933)	(69,304)
53,296	65,885
714	392
461
(16,970)	(4,892)
177	-·
(190)	(474)
3,644	(2,012)
(3,743)	(6,765)
3,800

1. (287)
   (4,147) (3,916)

1. (839)
   (1,384) (14,293)

1,813	754
13	26
1,962	2,228
3,788	3,008

l 4 The unaudited results were reviewed by the Audit Committee ofthe Board at their meeting held on 27 October 2020 and approved by the Board of Directors ofthe Company al their meeting held on 28 October 2020

15 The results for the quarter and halfyear ended 30 September 2020 were subject to a "Limited Review" by the Statutory Auditors ofthe Company An unqualified report has been issued by them thereon,

	By order ofthe Board
	For Dr. Reddy's Laboratories Limited
Place: Hyderabad	0 V Prasad
• 28 ()aobo 2020	Managing Ditector
Co-Chainnanw&
._ �

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