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DR REDDYS LABORATORIES LTD Interim / Quarterly Report 2025

Jan 24, 2025

30528_rns_2025-01-24_fd78688a-d212-46d7-ac76-ae2ee18153f7.pdf

Interim / Quarterly Report

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January 24, 2025

National Stock Exchange of India Ltd. (Stock Code: DRREDDY) BSE Limited (Stock Code: 500124) New York Stock Exchange Inc. (Stock Code: RDY) NSE IFSC Ltd. (Stock Code: DRREDDY)

Dear Sir/ Madam,

Sub: Integrated Filing (Financial) for the quarter and nine-months period ended December 31, 2024

Pursuant to SEBI Circular No. SEBI/HO/CFD/CFD-PoD-2/CIR/P/2024/185 dated December 31, 2024, read with BSE Circular No. 20250102-4 and NSE Circular No. NSE/CML/2025/02 dated January 2, 2025, we are submitting herewith the Integrated Filing (Financial) for the quarter and nine-months period ended December 31, 2024.

This will also be hosted on the Company's website, athttps://www.drreddys.com/

This is for your information and records.

Thanking you.

Yours faithfully, For Dr. Reddy's Laboratories Limited K Randhir Singh Company Secretary, Compliance Officer & Head-CSR KUMAR RANDHIR SINGH Digitally signed by KUMAR RANDHIR SINGH Date: 2025.01.24 13:03:15 +05'30'

QUARTERLY INTEGRATED FILING (FINANCIALS)

Dr. Reddy's Laboratories Ltd. 8-2-337, Road No. 3, Banjara Hills, Hyderabad - 500 034, Telangana, lndia.

CIN: L85195TG1984PLC004507

Tei :+91 40 4900 2900 Fax :+91 40 4900 2999 Email :[email protected] www.drreddys.com

DR. REDDY'S LABORATORIES LIMITED

Unaudited consolidated financiul resulls of Dr. Reddy's Laboratories Limited and its subsidiaries for the quarter and nine months ended 31 December 2024 prcparcd in accordance with lnternational Financial Rcporting Standards (IFRS) as issued b) the lnternational Accounling Standards Board (IASB)

Ali amounts in lndian ll.u1>ccs millions
Quuru'.r e11ded Nine months ended Year ended
Sl. No. Particulars 31.12.2024 30.09.2024 31.12.2023 31.12.2024 31.12.2023 31.03.2024
(Unaudited) (Unaudited) (Unaudited) (lJnaudited) (Unaudited) (Audited)
1 Re'enucs 83,586 80,162 72,148 240,475 208,334 279,164
2 Cost of revenues 34.534 32,393 29,945 97,310 86,210 115,557
3 Gross profit (1 - 2) 49,052 47,769 42,203 143,165 122,124 163,607
4 Selling, general and administrative expenses 24,117 23,007 20,228 69,815 56.725 77,201
5 Research and development expenses 6,658 7,271 5,565 10,122 15,996 22,873
6 Impainnt:!nt of non-currenl assets, net (4) 924 110 925 176 3
7 Other income.net (439) (984) (967) ( 1.893) (3,543) (4,199)
Tota) operating expenscs 30,332 30,218 24,936 88,969 69,354 95,878
8 Results from operating activitics 1(3) - (4 + 5 + 6 + 7)1 18,720 17,551 17,267 54,196 52,770 67,729
Finance income 798 2,312 1,357 4,545 4,090 5,705
Finance expense (818) (757) (394) (2,173) ( 1, 118) (1,711)
9 Finance (expense)/income,net (20) 1,555 963 2,372 2,972 3,994
10 Share of profit of equity accounted investees. net of tax 42 61 27 162 112 147
II Profit beforc tax (8 + 9 + 10) 18,742 19,167 18,257 56,730 55,854 71,870
12 Tax expense,net 4,704 5,752 4,468 15,357 13,240 16,186
13 Profit for the periodi)'ear (11 -12) 14,038 13,415 13,789 41,373 42,614 55,684
Attributahle to:
Eqt1ity holders ofthe paren! company 14,133 12,553 13,789 40,606 42,614 55,684
Non-controlling interests (95) 862 767 -
14 Earnings pcr equity share attributable to equityshareholdcrs of pa rent
Basic eamings per share of Re. l /. each 16.96 15.07 16.56 48.75 51.23 66.93
Diluted camings per share of Re.1/- each 16.94 15.05 16.54 48.68 51.14 66.81
(Not an1111alised) (Not anmwlised) (Not a111111alisec/) (Not amrnalise )</td (Not anmmlisecl) (Not anmmlisecl)

Sc 11ment· information ~

All amounts in Indian Rupe<'S millions Qu:1r1cr omfod Nine months ended Year ended SI. No. Particulars 31.12.2024 30.09.2024 31.12.2023 31.12.2024 31.12.2023 31.03.2024 (Unaudited) (Unaudited) (Unaudited) {Unaudited) (Unaudited) (Audited) Segment ,,·ise revenue and results: I Segment revenue: a) Pharn1aceutical Services and Active Ingredients 10.221 11,030 10.390 31,560 29,054 40,580 b) Global Generics 73.753 71.576 63,095 214,187 184,262 245,453 c) Others 1.614 179 1,214 2.005 2,490 3.910 Total 85,588 82,785 74,699 247,752 215,806 289,943 Less: Jnter-segment revenues 1,002 2,623 2,551 7,277 7,472 10,779 Net revenues 83,586 80,162 72,148 240,475 208,334 279,164 2 Segment results: Gross profit from each segment a) Pharmaceutical Services and Active Ingredients 2,353 2,518 2,306 6,639 4,569 6,919 b) Global Generics 45,219 45.162 39,075 134,899 116,335 154.268 c) Others 1,480 89 822 1.627 1,220 2,420 Total 49,052 47,769 42,203 143,165 122,124 163,607 Less: Selling and other un-allocable expenditure. net of 30.310 28,602 23,946 86,435 66,270 91.737 other income Total profit before tax 18,742 19,167 18,257 56,730 55,854 71,870

Global Generics segment includes operations of Biologics business. Inter-segment revenues represent 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, treasury assets and liabilities are often deployed interchangeably across segments, ii 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:

  • The above statement of unaudited consolidated financial results of Dr.Reddy's Laboratories Limited ("the Company"), which have been prepared in accordance with recognition and measurement principles of !AS 34 as issued by the International Accounting Standards Board (IASB) and were reviewed and recommended by Audit Committee and approved by the Board of Directors at their meetings held on 23 January 2025. The Auditors have carried out a limited review on the unaudited consolidated financial results and issued an unmodified report thereon.
  • 2 "Revenues" for the quarter and nine months ended 31 December 2024 includes an amount of Rs.1,266 million received as a milestone payment upon U.S.FDA approval of DFD 29. in accordance with the license and collaboration agreement dated 29 June 2021 with Journey Medical Corporation. This transaction pertains to the Company·s Others segment.
  • 3 During the quarter and nine months ended 31 December 2024. an amount of Rs.841 million and Rs,2,556 million, respectively, and during the quarter and nine months ended 31 December 2023, an amount of Rs. I, 148 million and Rs.3.422 million, respectively, representing government grants has been accounted as a reduction from cost of revenues.
  • 4 "Impairment of non-current assets, net 11recorded during the nine months ended 31 December 2024 includes an amount ofRs.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 "Other income, net" 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).

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,

These transactions pertains to the Company's Global Generics segment.

  • 6 Pursuant to the amendment in The Finance Act 2024. resulting in withdrawal of indexation benefit on long-tenn capital gain. the Company has written off Deferred Tax Asset amounting to Rs.482 million, created in earlier periods on land. during the nine months ended 31 December 2024.
  • 7 On 15 April 2024, the Company entered into an agreement with Nestle India Limited ("Nestle 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 Nestle 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, "ith corresponding infusion from Nestle India amounting to Rs.7.056 million resulting in a revised shareholding pattern of 51 :49 between the Company and Nestle India. Subsequently, Nutraceuticals subsidiary had purchased the portfolio of nulraceutical products and supplements from Nestle 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 recognized Product licenses and other intangibles of Rs.1,982 million, property, plant and equipment and current assets ofRs.43 million and Goodwill ofRs.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 the Company's Global Generics segment.

Profit after tax attributable to Non-controlling interest for nine months ended 31 December 2024, has arisen primarily on recognition of deferred tax asset on account of transfer of business from parent company to Nutraceuticals subsidiary. As at 31 December 2024, share of 49% held by Nestle India is recorded under Non-controlling interest of Rs.3,844 million.

On 26 June 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., Nicolinell. Nicabate, Thrive. and Habitrol. The acquisition is inclusive of all fom1ats 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 now 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 "Selling, general and administrative expenses·' during the nine months ended 31 December 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.

The amount of revenue and profit before tax (derived after amortisation ofNRT brands and integration expense) pertaining to the business acquired from Haleon since the acquisition date (i.e., September 30, 2024) was Rs.6,049 (GBP 56.3 million) and Rs.1,240 ( GBP 11.3 million) respectively. during the three months ended December 31, 2024.

9 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 finn to conduct the investigation at the instruction of a committee of the Company's Board of Directors, On 6 July 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 invesligations 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.

  • 10 The Company considered the uncertainties relating to the escalation of conflict in the middle east, and duration of military conilict between Russia and Ukraine, in assessing the recoverability ofreceivables, 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, 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.
  • 11 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 paidup, 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 ADSs 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 w.e.f. record date of 28 October 2024, the authorized share capital, the paid up share capital and the treasury shares were sub-divided into five equity shares having a face value of Rupee One each. As on 31 December 2024, the closing number of shares fully paid up and treasury shares were 834,424,050 and 1,302,980 respectively.

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 effect of stock split was considered in the computation of basic and diluted EPS for the quarter and nine months ended 31 December 2024 and prior periods have been restated considering face value of Rupee One each in accordance v.ith IAS 33- "Earnings per Share" and rounded off to the nearest decimals.

By order of the Board For Dr. Reddy's Laboratories Limited

£l.; cv,~oa Co-Chairman & 1\ lanaging Director

Place: Hyderabad Date: 23 January 2025

S.R. BATL/80/ & 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 nine months ended 31 December 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").
    1. 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 I 33 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.
    1. 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 oflndia under Regulation 33(8) of the Listing Regulations, to the extent applicable.

  1. The Statement includes the results of the following entities:

Holding Company:

Dr. Reddy's Laboratories Limited

Subsidiaries

    1. Aurigene Discovery Technologies (Malaysia) Sdn. Bhd.
    1. Aurigene Oncology Limited (Formerly, Aurigene Discovery Technologies Limited)
    1. Aurigene Pharmaceutical Services Limited
    1. beta Institut gemeinniltzige GmbH
    1. betapharm Arzneimittel GmbH
    1. Cheminor Investments Limited
    1. Chirotech Technology Limited (dissolved w.e.f September 18, 2024)
    1. Dr. Reddy's Farmaceutica Do Brasil Ltda.
    1. Dr. Reddy's Laboratories (EU) Limited
    1. Dr. Reddy's Laboratories (Proprietary) Limited
    • Dr. Reddy's Laboratories (UK) Limited
    • Dr. Reddy's Laboratories Canada, Inc.

S.R. BATL/80/ & ASSOCIATES LLP

Chartered Accountants

    1. Dr. Reddy's Laboratories Chile SPA.
    1. Dr. Reddy's Laboratories Inc.
    1. Dr. Reddy's Laboratories Japan KK
    1. Dr. Reddy's Laboratories Kazakhstan LLP
    1. Dr. Reddy's Laboratories Louisiana LLC
    1. Dr. Reddy's Laboratories Malaysia Sdn. Bhd.
    1. Dr. Reddy's Laboratories New York, LLC
    1. Dr. Reddy's Laboratories Philippines Inc.
    1. Dr. Reddy's Laboratories Romania Sri
    1. Dr. Reddy's Laboratories SA
    1. Dr. Reddy's Laboratories Taiwan Limited
    1. Dr. Reddy's Laboratories (Thailand) Limited
    1. Dr. Reddy's Laboratories LLC, Ukraine
    1. Dr. Reddy's New Zealand Limited
    1. Dr. Reddy's Sri
    1. Dr. Reddy's Bio-Sciences Limited
    1. Dr. Reddy's Laboratories (Australia) Pty. Limited
    1. Dr. Reddy's Laboratories SAS
    1. Dr. Reddy's Netherlands B.V. (Formerly Dr. Reddy's Research and Development B.V.)
    1. Dr. Reddy's Venezuela, C.A. (till April 17, 2024)
    1. Dr. Reddy's (Beijing) Pharmaceutical Co. Limited
    1. DRL Impex Limited
    1. Dr. Reddy's Formulations Limited
    1. Idea2Enterprises (India) Pvt. Limited
    1. Imperial Owners and Land Possessions Private Limited (Formerly, Imperial Credit Private Limited) (Under liquidation)
    1. Industrias Quimicas Falcon de Mexico, S.A. de CV
    1. Lacock Holdings Limited
    1. Dr. Reddy's Laboratories LLC, Russia
    1. Promius Pharma LLC
    1. Reddy Holding GmbH
    1. Reddy Netherlands B.V.
    1. Reddy Pharma Iberia SAU
    1. Reddy Pharma Italia S.R.L.
    1. Reddy Pharma SAS
    1. Svaas Wellness Limited
    1. Nimbus Health GmbH
    1. Dr. Reddy's Laboratories Jamaica Limited
    1. Dr. Reddy's and Nestle Health Science Limited (Formerly, Dr. Reddy's Nutraceuticals Limited)
    1. Northstar Switzerland SARL (from September 30, 2024)
    1. North Star OpCo Limited (from September 30, 2024)
    1. North Star Sweden AB (from September 30, 2024)
    1. Dr. Reddy's Denmark ApS (from October 04, 2024)
    1. Dr. Reddy's Finland Oy (from December 20, 2024)

Associates

  • 02 Renewable Energy IX Private Limited
  • Clean Renewable Energy KK 2A Private Limited (from 30 May 2024)

S.R. BATL/80/ & ASSOCIATES LLP

Chartered Accountants

Joint Venture

    1. DRES Energy Private Limited
    1. Kunshan Rotam Reddy Phannaceutical Co. Limited

Other Consolidating Entities

  • l. Dr. Reddy's Employees ESOS Trust
    1. Cheminor Employees Welfare Trust
    1. Dr. Reddy's Research Foundation
    1. Based on our review conducted and procedures perfonned 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 infonnation 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

Place: Hyderabad Date: January 23, 2025

Dr. Reddy's Laboratories Ltd. 8-2-337, Road No. 3, Banjara Hills, Hyderabad - 500 034, Telangana, India.

CIN: L85195TG1984PLC004507

Tel :+9140 4900 2900 Fax :+91 40 4900 2999 Email :[email protected] www.drreddys.com

DR. REDDY'S LABORATORIES LIMITED STATEME"<T OF UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS DIDED 31 DECEMBER 2024

/\II nmoums in Indian Ruoccs millfons
SI. Ouarter ended Nine months ended Year ended
No. Particulars 31.12.2024 30.09.2024 31.12.2023 31.12.2024 31.12.2023 31.03.2024
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
I Revenue from operationsa) Salesb) License fees and service incomec) Other operating income 79,9603,626226 78,8591,302221 69,6472,501220 234,2156,259681 203,1385,196639 271,3967,768947
Total revenue from operations 83,812 80,382 72,368 241,155 208,973 280,111
2 Other income 1,502 3,075 2,162 6,156 6,984 8,943
3 Total income (I+ 2) 85,314 83,457 74,530 247,311 215,957 289,054
4 Expensesa) Cost of materials consumedb) Purchase of stock-in-tradec) Changes in inventories of finished goods, work-in-progressand stock-in-trade 14,52610,507782 12,87212,828(2,033) 11,41212,083(1,735) 39,67037,136(5,507) 33,93932,232(5,005) 44,90143,991(6,805)
d) Employee benefits expensee) Depreciation and amortisation expense 13,6654,714 13,9923,970 12,7643,735 41,79412,490 37,46411,023 50,30114,700
f) lmpainnent of non-current assets, net (4) 924 110 925 176 3
g) Finance costsh) Other expenses 81721,606 75721,034 39417,503 2,17262,050 1,11849,164 1,71168,389
Total expenses 66,613 64,344 56,266 190,730 160,111 217,191
5 Profit before tax and before share of equityaccounted investees(] - 4) 18,701 19,113 18,264 56,581 55,846 71,863
6 Share of profit of equity accounted investees, net of tax 42 61 27 162 112 147
7 Profit before tax (5+6) 18,743 19,174 18,291 56,743 55,958 72,010
8 Tax expense/(benefit):a) Current taxb) Deferred tax 5,330(629) 7,713(1,958) 3,538944 18,258(2,900) 16,636(3,359) 19,459(3,228)
9 Net profit after taxes and share of profit of associates (7 - 8) 14,042 13,419 13,809 41,385 42,681 55,779
to Net profit after taxes attributable toa) Equity shareholders of the parent companyb) Non-controlling interests 14,137(95) 12,557862 13,809- 40,618767 42,681- 55,779
11 Other comprehensive income/(loss)a) (i) Items that will not be reclassified subsequently to profit or loss (52) (33) 132 (176) 16 (28)
(ii) Income tax relating to items that will not be reclassifiedto pro fit or loss - - - - - 4
b) (i) Items that will be reclassified subsequently to profit or loss (2,142) 2,978 782 951 (184) (749)
(ii) Income tax relating to items that will be reclassifiedto profit or loss 170 16 78 180 69 117
Total other comprehensive income/(loss) (2,024) 2,961 992 955 (99) (656)
12 Total comprehensive income (9 + 11) 12,018 16,380 14,801 42,340 42,582 55,123
13 Total comprehensive income attributable toa) Equity shareholders of the parent companyb) Non-controlling interest 12,113(95) 15,518862 14,801- 41,573767 42,582- 55,123-
12 Paid-up equity share capital (face value Re. 1/- each) 834 834 834 834 834 834
13 Other equity 281,714
14 Earnings per equity share attributable to equity shareholders ofparent(face value Re. 1/- each)
BasicDiluted 16.9716.94(Nol annualised) 15.0815.05(Nol annualised) 16.5916.56(Nol annualised) 48.7748.69(No1 annualised) 51.3151.22(Nol annualised) 67.0466.92

See accompanying notes to the financial results

Sel!mcnt infornrnl"ionAll amounts in Indian Ruot.'(.-S millions
Ouarter ended Nine months ended Year ended
SI. Particulars 31.12.2024 30.09.2024 31.12.2023 31.12.2024 31.12.2023 31.03.2024
No. /Una11dited) /Unaudited) (Unaudited) (Unaudited\ /Unaudited) (Audited\
Segment wise revenue and results:
l Segment revenue :
a) Pharmaceutical Services and Active Ingredients 10,387 11 ,190 10,580 32,049 29,570 41,295
b) Global Generics 73,813 71,636 63,124 214,378 184,384 245,673
c) Others 1,614 179 1,2 15 2,005 2,491 3,922
Total 85,814 83,005 74,919 248,432 216,445 290,890
Less: Inter-segment revenue 2,002 2,623 2,551 7,277 7,472 10,779
Total revenue from operations 83,812 80,382 72,368 241,155 208,973 280,111
2 Segment results:
Gross profit Ji-om each segment
a) Phannaceutical Services and Active Ingredients 2,359 2,521 2,307 6,652 4,580 6,929
b) Global Generics 45,219 45,162 39,077 134,899 116,335 154,272
c) Others 1,478 89 823 1,625 1,221 2,423
Total 49,056 47,772 42,207 143,176 122,136 163,624
Less: Selling and other un-allocable expenditure/(income), net 30,313 28,598 23,916 86,433 66,178 91,614
Total profit before tax 18,743 19,174 18,291 56,743 55,958 72,010

Global Generics includes operations of Biologics business, Inter-segment revenue represents sales from Pharmaceutical Services and Active lni,>redients 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 oflen 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:

  • 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 I 33 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 23 January 2025. The Statutory Auditors have carried out a limited review on the unaudited consolidated financial results and issued an unmodified report thereon.
  • 2 "License fees and service income" for the quarter and nine months ended 31 December 2024 includes an amount of Rs.1,266 million received as a milestone payment upon U.S.FDA approval of DFD 29, in accordance with the license and collaboration ab>reement dated 29 June 2021 with Journey Medical Corporation. This transaction pertains lo the Company's Others segment.
  • 3 '·Other income" for the year ended 3 I 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).

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.

These transactions pertains to the Company's Global Generics segment.

  • 4 During the quarter and nine months ended 31 December 2024, an amount of Rs.84 I million and Rs.2,556 million, respectively, and during the quarter and nine months ended 3 I December 2023, an amount of Rs. I, 148 million and Rs.3,422 million, respectively, representing government grants has been accounted as a reduction Ji-om CosL of materials consumed.
  • 5 "lmpainnent of non-current assets, net" during the nine months ended 31 December 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 Ji-om its contract manufacturer, resulting in a lower recoverable value compared to the carrying value. This impainnent charge pertains to the Company's Global Generics segment.
  • 6 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 periods on land, during the nine months ended 31 December 2024.
  • 7 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 finn to conduct the investigation at the instruction of a committee of the Company's Board of Directors. On 6 July 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 lo 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 Ji-om 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.

8 On 25 April 2024, the Company entered into an agreement with Nestle India Limited ("Nestle 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 Nestle 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 Nestle India amounting to Rs.7,056 million resulting in a revised shareholding pattern of 51:49 between the Company and Nestle India, Subsequently, Nutraceuticals subsidiary had purchased the portfolio of nutraceutical products and supplements from Nestle India for a consideration of Rs.2,23 l 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 recognized Product licenses and other intangibles of Rs.1,982 million, property, plant and equipment and current assets of Rs.43 million and Goodwill ofRs.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 the Company's Global Generics segment.

Profit after tax attributable to Non-controlling interest for nine months ended 31 December 2024, has arisen primarily on recognition of deferred tax asset on account of transfer of business from parent company to Nutraceuticals subsidiary. As at 31 December 2024, share of 49% held by Nestle India is recorded under Non-controlling interest of Rs.3,844 million.

9 Business purchase agreement with Haleon:

On 26 June 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 fonnats 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 ofRs.51,407 million (GBP 458 million). An additional consideration ofup 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 ofRs.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 nine months ended 31 December 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.

The amount of revenue and profit before tax (derived after amortisation of NRT brands and integration expense) pertaining to the business acquired from Haleon since the acquisition date (i.e., September 30, 2024) was Rs.6,049 (GBP 56.3 million) and Rs.1,240 ( GBP 11.3 million) respectively, during the three months ended December 31, 2024.

IO 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 ADSs 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 w.e.f. record date of28 October 2024, the authorized share capital, the paid up share capital and the treasury shares were sub-divided into five equity shares having a face value of Rupee One each. As on 31 December 2024, the closing number of shares fully paid up and treasury shares were 834,423,960 and 1,302,980 respectively. 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 effect of stock split was considered in the computation of basic and diluted EPS for the quarter and nine months ended 31 December 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.

11 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 infonnation up to the date of approval of these financial results. Based on its judgments, estimates and assumptions, 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.

By order of the Board For Dr. Reddy's Laboratories Limited

W G V Prasad Co-Chainnan & Managing Director

Place: Hyderabad Date: 23 January 2025

ct-,. ~

S.R. BATLIBO/ & 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 Standalone 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 Standalone Financial Results for the quarter and nine months ended 31 December, 2024" (the "Statement") of Dr. Reddy's Laboratories Limited (the "Company") attached herewith, being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing Regulations").
    1. The 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 Company's Board of Directors. Our responsibility is to express a conclusion on the Statement based on our review.
    1. 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.
    1. Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the 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

vasan Partner Membership No.:213271

Place: Hyderabad Date: January 23, 2025

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 :[email protected] www.drreddys.com

DR. REDDY'S LABORATORIES LIMITED STATDIE:'IT OF UNAUDITED STA.-iDALONE FINANCIAL RESULTS FOR THE QUARTER AND MNE MONTHS ENDED 31 DECEMBER 2024

All amounts in Indian Rupees millions
SI. Quarter ended Nine months ended Year ended
:\o. Particulars 31.12.2024 30.09.2024 31.12.2023 31.12.2024 31.12.2023 31.03.2024
(Unaudited) (Unaudited) {Unaudited) (Unaudited) (Unaudited) (Audited)
I Revenue from operations
a) Sales 47,775 58,534 40,389 164,385 142,460 192,764
b) License fees and service income 2,203 8,254 442 10,620 763 1,277
c) Other operating income 172 175 199 510 567 797
Total revenue from operations 50,150 66,963 41,030 175,525 143,790 194,838
2 Other income 1,354 2,076 2,276 6,187 6,651 8,623
Total income (I + 2) 52,504 69,039 43,306 181,812 150,441 203,461
3 Expenses
a) Cost of materials consumed 10,117 9,343 8,187 28,571 23,838 32,915
b) Purchase of stock-in-tradec) Changes in inventories of finished goods, work-in-progress 5,084 6,565 5,569 19,052 14,403 19,866
and stock-in-trade (370) (930) (651) (2,561) (1,868) (2,388)
d) Employee benefits expense 7,944 8,401 7,8'.B 24,904 23,062 30,857
e) Depreciation and amortisation expense 1,651 1,600 2,464 7,749 7,294 9,756
I) Impairment of non current assets, net - - - - - 260
g) Finance costs 433 284 56 788 159 218
h) Other expenses 15,451 16,368 13,539 46,568 39,032 54,064
Total expenses 41,310 42,631 36,987 125,071 105,920 145,548
4 Profit before tax ( l + 2 - 3) 11,194 26,408 6,319 56,741 44,521 57,913
5 Tax expense/(benefit)
a) Current tax 2,563 7,033 1,569 14,262 10,916 13,6 18
b) Deferred tax 137 554 (2) 992 533 875
6 Net profit for the period/year (4 - 5) 8,494 18,821 4,752 41,487 33,072 43,420
7 Other comprehensive income
a)(i) Items that will not be reclassified to profit or loss - - (8) - (6) 21
(ii) lncome tax relating to items that will not be reclassifiedto profit or loss - - - - (7)
(812) (257) (446)
b)(i) Items that will be reclassified to profit or loss (779) (88) 24
(ii) Income tax relating to items that will be reclassified to (6) 65
profit or loss 196 22 204 114
Total other comprehensive (loss)/income (583) (66) 10 (608) (198) (318)
8 Total comprehensive income (6 + 7) 7,911 18,755 4,762 40,879 32,874 43,102
9 Paid-up equity share capital (face value Re. I/- each) 834 834 834 834 834 834
10 Other equity 241.574
11 Earnings per equity share (face value Re. 1/- each)
Basic 10.20 22.60 5.71 49.81 39.76 52.19
Diluted 10.18 22.56 5.70 49.73 39.69 52.09
(Not annualised) (Not annualised) (Not annualised) (Not annualised) (Not annualised)

See ncco1r1panymg notes to 1hc financ 1t1I results.

Se!!ment informationAll amounts in Indian Rupees mi11ions
Quarter ended Nine months ended Year ended
SI. Particulars 31.12.2024 30.09.2024 31.12.2023 31.12.2024 31.12.2023 31.03.2024
;\o. (Unaudited) {Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
Segment wise revenue and results
I Segment revenue
a) Phannaceutical Services and Active Ingredients s,1n 7,9n 7,658 24,764 20,900 30,742
b) Global Generics 42,401 61,467 35,726 156,315 129,399 173,405
c) Others 1,281 23 66 1,365 325 678
Total 51,954 69,462 43,450 182,444 150,624 204,825
Less: Inter-segment revenue 1,804 2,499 2,420 6,919 6,834 9,987
Total revenue rrom operations 50,150 66,963 41,030 175,525 143,790 194,838
2 Segment results
Profit/(loss) before tax and interest from each segment
a) Phannaceutical Services and Active Ingredients 313 (146) (397) 97 (! ,533) (287)
b) Global Generics 8,268 26,800 6,832 54,735 45,498 57,670
c) Others 1,255 20 198 1,372 297 536
Total 9,836 26,674 6,633 56,204 44,262 57,919
Less: (i) Finance costs 433 284 56 788 159 218
(ii) Other un-allocable (income)/expenditure, net (1,791) (18) 258 (1,325) (418) (212)
Total profit before tax 11,194 26,408 6,319 56,741 44,521 57,913

Global Generics includes operations of Biologics business. Inter-segment revenue represents sale from Phannaceutical Services and Active Ingredients to Global Generics 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 standalone 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 the Companies Act, 2013 ("the Act") read with relevant rules issued thereunder, other accounting principles generally accepted in India and guidelines issued by the Securities and Exchange Board of India ("SEBI") were reviewed and recommended by the Audit Committee and approved by the Board of Directors at their meetings held on 23 January 2025. The Statutory Auditors have carried out a limited review on the unaudited standalone financial results and issued unmodi lied report thereon.

  • 2 "License fees and service income" for the quarter and nine months ended 31 December 2024 includes an amount of Rs.1,266 million received as a milestone payment upon U.S.FDA approval of DFD 29, in accordance with the license and collaboration agreement dated 29 June 2021 with Journey Medical Corporation. This transaction pertains to the Company's Others segment.
  • 3 "Other income" for the year ended 31 March 2024 includes:

a) Rs.540 million recognised in April 2023, pursuant to selllement 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) Dividend income of Rs. 445 million recognised in June 2023, declared by Kunshan Rotan Reddy Pharmaceutical Company Limiled,joint venture of the company.

  • 4 During the quarter and nine months ended 31 December 2024, an amount ofRs.834 million and Rs.2,534 million, respectively and during the quarter and nine months ended 31 December 2023, an amount of Rs.1,142 million and Rs.3,405 million, respectively, representing government grants has been accounted as a reduction from cost of materials consumed.
  • 5 Pursuant lo the amendment in The Finance Act 2024, resulting in withdrawal of indexation benefit on long-term capital gain, the company has wrillen off Deferred Tax Asset amounting to Rs. 482 million, created in earlier periods on land, during the nine months ended 31 December 2024.

6 Agreement with Nestle India:

On 25 April 2024, the Company entered into an agreement with Nestle India Limited ("Nestle 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 Nestle Health Science Limited (the "Nutraceuticals subsidiary") on 13 June 2024.

Upon completion of the closing conditions, the transaction concluded on O I August 2024. Consequently, the Company has made an additional investment of Rs. 7,340 million in its Nutraceuticals subsidiary, with corresponding infusion from Nestle India amounting to Rs. 7,056 million resulting in a revised shareholding pallern of5 l :49 between the Company and Nestle India,

Further, the Company also received Rs. 8,113 million (excluding GST) as consideration towards transfer of its nutraceutical and vitamins, minerals, herbals, and supplements portfolio to Nutraceuticals subsidiary as part of the definitive agreement. This has been recorded as License fees for the nine months ended 31 December 2024. This acquisition pertains to Company's Global Generics segment.

7 The Board of Directors of the Company al 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 ADSs 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 w.e.f. record date of 28 October 2024, the authorized share capital, the paid up share capital and the treasury shares were sub-divided into five equity shares having a face value of Rupee One each. As on 31 December 2024, the closing number of shares fully paid up and treasury shares were 834,423,960 and 1,302,980 respectively.

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

The effect of stock split was considered in the computation of basic and diluted EPS for the quarter and nine months ended 31 December 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.

  • 8 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 infonnation up to the date of approval of these financial results. Based on its judgments, estimates and assumptions, 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.
  • 9 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 Jaws, 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 finn to conduct the investigation at the instruction ofa committee of the Company's Board of Directors. On 06 July 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.

By order of the Board For Dr. Reddy's Laboratories Limited

Co-Chairman & Managing Director

Place: Hyderabad Date: 23 January 2025

  • B. STATEMENT ON DEVIATION OR VARIATION FOR PROCEEDS OF PUBLIC ISSUE, RIGHTS ISSUE, PREFERENTIAL ISSUE, QUALIFIED INSTITUTIONS PLACEMENT ETC. - Not applicable
  • C. FORMAT FOR DISCLOSING OUTSTANDING DEFAULT ON LOANS AND DEBT SECURITIES
S.No Particulars In Rs.Cr
1 Loans / revolving facilities like cash credit from banks / financial
institutions
A Total amount outstanding as on date 4,620
B Of the total amount outstanding, amount of default as on date 0
2 Unlisted debtsecurities i.e., NCDs and NCRPS
A Total amount outstanding as on date 0
B Of the total amount outstanding, amount of default as on date 0
3 Total financial indebtedness of the listed entity including short 4,620
term and long term debt
  • D. FORMAT FOR DISCLOSURE OF RELATED PARTY TRANSACTIONS (applicable only for half yearly filings i.e., 2nd and 4th quarter) - Not applicable
  • E. STATEMENT ON IMPACT OF AUDIT QUALIFICATIONS (FOR AUDIT REPORT WITH MODIFIED OPINION) SUBMITTED ALONG WITH ANNUALAUDITED FINANCIAL RESULTS (Standalone and Consolidated separately) (applicable only for Annual Filing i.e., 4th quarter) – Not applicable

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