Edgar Filing: DR REDDYS LABORATORIES LTD

Press Release, “Dr. Reddy’s Q4 & FY13 Financial Results; Highest ever Quarterly Performance”, May 14, 2013.

Audited consolidated financial results of Dr. Reddy’s Laboratories Limited and its subsidiaries for the quarter and year ended 31 March 2013 prepared in compliance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).

Form 6-K

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

May 2013

Commission File Number – 1-15182

DR. REDDY’S LABORATORIES LIMITED

(Name of Registrant)

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

Hyderabad, Andhra Pradesh 500 034, India

+91-40-4900-2900

(Address of Principal Executive Offices)

Indicate by check mark whether registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F x Form 40-F ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ¨ No x

If “Yes” is marked, indicate below the file number assigned to registrant in connection with Rule 12g3-2(b):

Not applicable.

Table of Contents


Press Release
		Dr. Reddy’s Laboratories Ltd.
		8-2-337, Road No. 3
		Banjara Hills, Hyderabad - 500 034
		Andhra Pradesh, India

		Tel: 91-40-4900-2900
		Fax: 91-40-4900-2999

		www.drreddys.com

Dr. Reddy’s Q4 & FY13 Financial Results

Highest ever Quarterly Performance


FY13 Revenues at 116.3 billion		Q4 FY13 Revenues at 33.4 billion
(YoY growth of 26%)#		(YoY growth of 26%)#

FY13 EBITDA at 27.8 billion		Q4 FY13 EBITDA at 9.3 billion

FY13 PAT at 17.5 billion*		Q4 FY13 PAT at 5.7 billion*

Hyderabad, India, May 14, 2013: Dr. Reddy’s Laboratories Ltd. (NYSE: RDY) today announced its audited consolidated financial results for the fourth quarter and full year ended March 31, 2013 under International Financial Reporting Standards (IFRS).

Key Highlights

•

Consolidated revenues for FY13 at 116.3 billion, recorded year-on-year growth of 20%. Excluding the beneficial impact of olanzapine exclusivity in FY12, registered year-on-year growth of 26%. Growth primarily driven by North America and Emerging Markets (which include Russia, other CIS countries and Rest of World (RoW) territories) in the Global Generics segment; and overall performance by Pharmaceutical Services and Active Ingredients segment.

•

Consolidated revenues of LOGO 33.4 billion in Q4 FY13, year-on-year growth of 26%.

•

EBITDA of LOGO 27.8 billion in FY13, 24% of revenues, with year-on-year growth of 9.5%.

•

EBITDA of 9.3 billion in Q4 FY13, 28% of revenues, with year-on-year growth of 37%.

•

Profit after tax* for FY13 at LOGO 17.5 billion, 15% of revenues with year-on-year growth of 17%

•

Profit after tax of LOGO 5.7 billion in Q4 FY13, 17% of revenues with year-on-year growth of 67%.

•

During the year, the company launched 78 new generic products, filed 56 new product registrations and filed 47 DMFs globally.

•

During the quarter, the company launched 18 new generic products, filed 14 new product registrations and filed 17 DMFs globally.

#	*Excluding olanzapine exclusivity in FY12*

*	*PAT adjusted for Impairment of intangibles/goodwill*

All figures in millions, except EPS

All US dollar figures based on convenience translation rate as on 31^st March, 2013

1 USD = 54.52

Dr. Reddy’s Laboratories Limited and Subsidiaries

Audited Consolidated Income Statement


	FY13									FY12									Growth
Particulars	($)			(Rs.)			%			($)			(Rs.)			%			%
Revenue		2,133			116,266			100			1,774			96,737			100			20
Cost of revenues		1,021			55,687			48			797			43,432			45			28

Gross profit		1,111			60,579			52			978			53,305			55			14

Operating Expenses
Selling, general & administrative expenses		616			33,584			29			529			28,867			30			16
Research and development expenses		141			7,673			7			108			5,911			6			30
Write down of intangible assets		9			507			0			19			1,040			1			(51	)
Write down of goodwill		3			181			0			0			0			0			0
Other operating income		(45	)		(2,479	)		(2	)		(14	)		(765	)		(1	)		224

Results from operating activities		387			21,112			18			335			18,252			19			16

Net finance income		(8	)		(460	)		(0	)		(3	)		(160	)		(0	)		187
Share of profit of equity accounted investees		(2	)		(104	)		(0	)		(1	)		(54	)		(0	)		93

Profit before income tax		398			21,677			19			339			18,466			19			17

Income tax expense		90			4,900			4			77			4,204			4			17

Profit for the year		308			16,776			14			262			14,262			15			18

					170									170

Diluted EPS		1.8			98.44						1.5			83.81						17

EBITDA Computation


	FY13						FY12
Particulars	($)			(Rs.)			($)		(Rs.)
PBT		398			21,677			339		18,466
Interest and Income from Mutual Funds		(2	)		(94	)		13		690
Depreciation		71			3,859			67		3,628
Amortization & Impairment		44			2,378			48		2,626

EBITDA		510			27,820			466		25,409


All figures in millions, except EPS		All US dollar figures based on convenience translation rate as on 31^st March, 2013
		1USD = 54.52

Appendix 1: Key Balance Sheet Items


	As on 31st March 13				As on 31st March 12
Particulars	($)		(Rs.)		($)		(Rs.)
Cash and cash equivalents		405		22,099		333		18,152
Trade receivables		586		31,972		465		25,339
Inventories		396		21,600		355		19,352
Property, plant and equipment		694		37,814		610		33,246
Goodwill and Other Intangible assets		257		14,021		248		13,529
Loans and borrowings (current & non-current)		674		36,760		591		32,210
Trade payables		218		11,862		174		9,503
Equity		1,341		73,085		1,054		57,444

Appendix 2: FY13 Revenue Mix by Segment


	FY13						FY12						Growth
Particulars	($)		(Rs.)		%		($)		(Rs.)		%		%
Global Generics		1,514		82,563		71		1,288		70,243		73		18

North America				37,846		46				31,889		45		19
Europe				7,716		9				8,259		12		(7	)
India				14,560		18				12,931		18		13
Russia & Other CIS				16,908		20				13,260		19		28
RoW				5,533		7				3,904		6		42

PSAI		563		30,702		26		437		23,812		25		29

North America				5,744		19				4,272		18		34
Europe				12,007		39				8,424		35		43
India				4,638		15				3,586		15		29
RoW				8,313		27				7,531		32		10

Proprietary Products & Others		55		3,001		3		49		2,682		3		12

Total		2,133		116,266		100		1,774		96,737		100		20

SEGMENTAL ANALYSIS

Global Generics

Revenues from Global Generics segment for FY13 are at LOGO 82.6 billion with a year-on-year growth of 18%, primarily driven by North America and Emerging Markets.

•

Revenues from North America for FY13 at LOGO 37.8 billion, recorded year-on-year growth of 19%. Excluding the beneficial impact of olanzapine exclusivity in FY12, registered year-on-year growth of 38%.

•

Growth is largely driven by key limited competition products such as ziprasidone, fondaparinux, ramp-up in our antibiotics portfolio and products from our Shreveport facility.

•

Significant contribution from new products launched during the year. 14 new products have been launched during the year major contributors being finasteride 1mg (180 day exclusivity), montelukast granules, atorvastatin, metoprolol, clopidogrel, ibandronate and zoledronic acid 4mg/5mL.

•

19 product filings (18 ANDAs and 1 NDA). Cumulatively, 65 ANDAs are pending for approval with the USFDA of which 38 are Para IVs and 8 have ‘First To File’ status.

•

Revenues from Emerging Markets for FY13 at LOGO 22.4 billion recorded year-on-year growth of 31%.

•

Revenues from Russia for FY13 stood at LOGO 14.0 billion and recorded year-on-year growth of 27%, largely driven by volume growth in the major brands and new product launches.

•

Revenues from Other CIS markets for FY13 stood at LOGO 2.9 billion recorded year-on-year growth of 28%.

•

Revenues from Rest of World (RoW) territories at LOGO 5.5 billion recorded year-on-year growth of 42%. Of this Venezuela and Australia have shown strong growth in FY13 on the back of higher volumes for existing products and new product launches.

•

Revenues from India for FY13 at LOGO 14.6 billion recorded year-on-year growth of 13%.

•

Growth driven by volume increase across most key brands and new products launches.

•

24 new brands were launched.

•

IMS Mar ’13, Dr Reddy’s MAT Gr% 13.7% Vs IPM MAT Gr% of 10.2%. (Source: IMS).

•

Biosimilars portfolio has grown by 25% in FY13 compared to FY12.

Pharmaceutical Services and Active Ingredients (PSAI)

•

Revenues from PSAI for FY13 at LOGO 30.7 billion, recorded Year-on-year growth of 29%.

•

High growth on account of increased sales to generic customers on account of patent expirations and higher customer orders in the custom pharmaceutical business.

•

During the year, 47 DMFs were filed globally, including 5 in the US and 10 in Europe. The cumulative number of DMF filings as of March 31, 2013 is 577.

INCOME STATEMENT HIGHLIGHTS:

•

Gross profit margin stood at 52.1% in FY13 as compared to 55.1% in FY12. Adjusted for the olanzapine exclusivity in FY12, the gross profit margins remained stable. Gross profit margin for Global Generics and PSAI business segments are at 59.0% and 32.5% respectively for FY13.

•

Selling, General and Administration (SG&A) expenses including amortization at LOGO 33.6 billion increased Year-on-year by 16%. The increase is primarily on account of regular year-on-year increments in manpower costs, selling costs and the effect of rupee depreciation against multiple currencies. SG&A as a percentage to sales stood at 29% in FY13 and compared to previous year there is a fall of 100 bps indicating improved operating leverage.

•

Research & development expenses for FY13 at LOGO 7.7 billion is at 6.6% of revenues as against LOGO 5.9 billion at 6.1% of revenues in FY12.

•

During the year Dr. Reddy’s benefited by an amount of USD 22.5 Mn from one-time settlement done with Nordion Inc [which is formerly MDS Inc]. The settlement is towards the damages sustained by the Company due to the breach by Nordion of the then existing Laboratory services agreement for bioequivalence studies.

•

Net Finance income in FY13 is at LOGO 460 million compared to the net finance income of LOGO 160 million in FY12. The change is on account of :

•

Net forex gain of LOGO 365 million in FY13 compared to net forex gain of LOGO 689 million.

•

Net interest expense of LOGO 118 million in FY13 compared to net interest expense of LOGO 690 million in FY12.

•

Incremental income from mutual funds of LOGO 51 million in FY13 over FY12.

•

EBITDA for FY13 is LOGO 27.8 billion, 24% of revenues and increased by 9.5% as compared to the previous year.

•

Profit after Tax* in FY13 at LOGO 17.5 billion, 15% of revenues and increased by 17% as compared to the previous year.

•

Diluted earnings per share in FY 13 are LOGO 98.4

•

Capital expenditure for FY13 is LOGO 6.6 billion.

*	*PAT adjusted for Impairment of intangibles/goodwill*

All figures in millions, except EPS

All US dollar figures based on convenience translation rate as on 31^st March, 2013

1USD = 54.52

Appendix 3: Q4 FY13 Consolidated Income Statement


Particulars	Q4 FY13									Q4 FY12									Growth %
Particulars	($)			(Rs.)			%			($)			(Rs.)			%			Growth %
Revenue		613			33,400			100			488			26,584			100			26
Cost of revenues		304			16,554			50			231			12,614			47			31

Gross profit		309			16,846			50			256			13,970			53			21

Operating Expenses
Selling, general & administrative expenses		160			8,722			26			132			7,217			27			21
Research and development expenses		43			2,326			7			32			1,741			7			34
Write down of intangible assets		0			0			0			19			1,040			4
Other operating income		(30	)		(1,631	)		(5	)		(4	)		(199	)		(1	)		720

Results from operating activities		136			7,427			22			77			4,172			16			78

Net finance income		(7	)		(397	)		(1	)		(1	)		(82	)		(0	)		386
Share of profit of equity accounted investees		(0	)		(26	)		(0	)		(0	)		(11	)		(0	)		131

Profit before income tax		144			7,850			24			78			4,265			16			84

Income tax expense		39			2,141			6			15			838			3			156

Profit for the period		105			5,709			17			63			3,427			13			67

Diluted EPS		0.6			33.51						0.4			20.09						67

Appendix 4: Q4 FY13 Profit Computation


Particulars	Q4 FY13						Q4 FY12
Particulars	($)			(Rs.)			($)		(Rs.)
PBT		144			7,850			78		4,265
Interest		(1	)		(52	)		2		89
Depreciation		19			1,049			19		1,021
Amortization		8			446			7		383
Impairment		0			0			19		1,040

EBITDA		170			9,293			125		6,798

Disclaimer

This press release includes forward-looking statements, as defined in the U.S. Private Securities Litigation Reform Act of 1995. We have based these forward-looking statements on our current expectations and projections about future events. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. Such factors include, but are not limited to, changes in local and global economic conditions, our ability to successfully implement our strategy, the market acceptance of and demand for our products, our growth and expansion, technological change and our exposure to market risks. By their nature, these expectations and projections are only estimates and could be materially different from actual results in the future.

About Dr. Reddy’s

Dr. Reddy’s Laboratories Ltd. (NYSE: RDY) is an integrated global pharmaceutical company, committed to providing affordable and innovative medicines for healthier lives. Through its three businesses—Pharmaceutical Services and Active Ingredients, Global Generics and Proprietary Products—Dr. Reddy’s offers a portfolio of products and services including APIs, custom pharmaceutical services, generics, biosimilars and differentiated formulations. Major therapeutic focus is on gastro-intestinal, cardiovascular, diabetology, oncology, pain management and anti-infective. Major markets include India, USA, Russia-CIS and Europe apart from other select geographies within Emerging Markets.

For more information, log on to: www.drreddys.com

CONTACT INFORMATION

Investors and Financial Analysts:

Kedar Upadhye at kedaru@drreddys.com / +91-40-66834297

Saunak Savla at saunaks@drreddys.com / +91-40-49002135

Milan Kalawadia (USA) at mkalawadia@drreddys.com / +1 908-203-4931

Media:

S Rajan at rajans@drreddys.com / +91-40-49002445

Note: All discussions in this release are based on unaudited consolidated IFRS financials.



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

		Tel: 91-40-4900-2900
		Fax: 91-40-4900-2999 www.drreddys.com

Audited consolidated financial results of Dr. Reddy’s Laboratories Limited and its subsidiaries for the quarter and year ended 31 March 2013 prepared in compliance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB)

All amounts in Indian Rupees lakhs, except share data


		Quarter ended									Year ended
		31.03.2013			31.12.2012			31.03.2012			31.03.2013			31.03.2012
Sl. No.	Particulars	(Audited)			(Unaudited)			(Audited)			(Audited)			(Audited)
1	Net Income from Sales and Services		333,994			286,516			265,845			1,162,656			967,374
2	Cost of Sales and Services
	a) (Increase) / decrease in stock-in-trade and work-in-progress		10,783			(4,544	)		1,373			(13,608	)		(14,017	)
	b) Consumption of raw materials		102,999			94,366			84,404			383,628			303,195
	c) Other expenditure		51,763			47,812			40,362			186,850			145,141
3	Gross Profit (1 - 2)		168,449			148,882			139,706			605,786			533,055
4	Selling, General and Administrative expenses		87,224			85,708			72,166			335,844			288,674
5	Research and Development expenses		23,261			20,254			17,404			76,733			59,105
6	Impairment loss on goodwill		—			—			—			1,809			—
7	Impairment loss on intangibles		—			—			10,404			5,067			10,404
8	Other (income) / expense, net		(16,310	)		(2,331	)		(1,980	)		(24,790	)		(7,650	)
9	Operating profit (3) - (4 + 5 + 6 + 7 + 8)		74,274			45,251			41,712			211,123			182,522
10	Finance (expense) / income, net		3,973			(968	)		822			4,599			1,599
11	Share of profit of equity accounted affiliate, net of income taxes		257			313			115			1,044			544
12	Profit before tax (9 + 10 + 11)		78,504			44,596			42,649			216,766			184,665
13	Tax expense		21,415			8,265			8,379			49,004			42,044


		Quarter ended									Year ended
		31.03.2013			31.12.2012			31.03.2012			31.03.2013			31.03.2012
Sl. No.	Particulars	(Audited)			(Unaudited)			(Audited)			(Audited)			(Audited)
14	Net Profit after tax (12 - 13)		57,089			36,331			34,270			167,762			142,621
15	Extra-ordinary items (net of tax expense)		—			—			—			—			—
16	Net Profit for the period / year (14 - 15)		57,089			36,331			34,270			167,762			142,621
17	Net Profit attributable to:
	- Equity holders of the Company		57,101			36,331			34,270			167,774			142,621
	- Non-controlling interest		(12	)		—			—			(12	)		—
18	Paid-up equity share capital (Face value of Rs. 5/- each)		8,492			8,492			8,478			8,492			8,478
19	Share premium, retained earnings, share based payment reserve, debenture redemption reserve and other components of equity											722,408			566,001
20	Earnings per share for the period / year (in Rupees) per Rs. 5/- share
	- Basic		33.62			21.39			20.21			98.82			84.16
	- Diluted		33.51			21.33			20.14			98.44			83.81
			(Not annualised	)		(Not annualised	)		(Not annualised	)
21	Public shareholding *
	- Number of shares		97,799,433			98,126,503			97,627,569			97,799,433			97,627,569
	- Percentage of shareholding		57.59			57.78			57.57			57.59			57.57
22	Promoters and promoter group shareholding
	a) Pledged / Encumbered
	- Number of shares		—			—			—			—			—
	- Percentage of shares (as a % of the total shareholding of promoter and promoter group)		—			—			—			—			—
	- Percentage of shares (as a % of the total share capital of the Company)		—			—			—			—			—
	b) Non-encumbered
	- Number of shares		43,417,812			43,417,812			43,417,812			43,417,812			43,417,812
	- Percentage of shares (as a % of the total shareholding of promoter and promoter group)		100.00			100.00			100.00			100.00			100.00
	- Percentage of shares (as a % of the total share capital of the Company)		25.56			25.56			25.61			25.56			25.61
23	Details of items exceeding 10% of total expenditure
	- Employee cost		53,488			51,647			44,834			204,133			169,275

*	Public Shareholding as defined under Clause 40A of the Listing Agreement (excludes shares held by Promoters, Promoter Group and American Depository Receipt holders)

Segment reporting (Consolidated)


		Quarter ended						Year ended
		31.03.2013		31.12.2012		31.03.2012		31.03.2013		31.03.2012
Sl. No.	Particulars	(Audited)		(Unaudited)		(Audited)		(Audited)		(Audited)
	Segment wise revenue and results:
1	Segment revenue:
	a) Pharmaceutical Services and Active Ingredients		115,846		86,485		92,531		362,864		291,483
	b) Global Generics		225,658		208,277		183,972		825,629		702,434
	c) Proprietary Products		3,855		4,013		2,932		14,679		10,776
	d) Others		2,751		2,959		4,104		15,329		16,045
	Total		348,110		301,734		283,539		1,218,501		1,020,738
	Less: Inter-segment revenue		14,116		15,218		17,694		55,845		53,364
	Net Revenue from operations		333,994		286,516		265,845		1,162,656		967,374
2	Segment results:
	Gross Profit from each segment
	a) Pharmaceutical Services and Active Ingredients		34,771		19,531		28,449		99,696		75,077
	b) Global Generics		130,238		124,901		107,029		487,205		442,633
	c) Proprietary Products		3,415		3,715		2,562		13,237		9,032
	d) Others		25		735		1,666		5,648		6,313
	Total		168,449		148,882		139,706		605,786		533,055
	Less: Other un-allocable expenditure, net of other income		89,945		104,286		97,057		389,020		348,390
	Total profit before tax		78,504		44,596		42,649		216,766		184,665

Global Generics includes operations of Biologics business. Inter-segment revenue represents sale from Pharmaceutical Services and Active Ingredients to Global Generics.

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:

Investor Complaints


Pending at the beginning of the quarter			Nil
Received during the quarter			8
Disposed off during the quarter			8
Remaining unresolved at the end of the quarter			Nil

The Company has consolidated the financial statements of the following companies: Dr. Reddy’s Farmaceutica Do Brazil Ltda., Dr. Reddy’s Laboratories (EU) Limited, Dr. Reddy’s Laboratories (UK) Limited, Aurigene Discovery Technologies Limited, Aurigene Discovery Technologies Inc., Cheminor Investments Limited, DRL Impex Limited, Reddy Netherlands B.V., Reddy US Therapeutics Inc., Dr. Reddy’s Laboratories (Proprietary) Limited, OOO Dr. Reddy’s Laboratories Limited, Promius Pharma LLC, Dr Reddy’s Bio-Sciences Limited, Trigenesis Therapeutics Inc., Industrias Quimicas Falcon de Mexico SA de CV, Lacock Holdings Limited, Reddy Holding GmbH, betapharm Arzneimittel GmbH, Reddy beta GmbH, beta Institut gemeinnützige GmbH, Dr. Reddy’s Laboratories (Australia) Pty Ltd, OOO Alfa, Reddy Pharmaceuticals Hong Kong Limited, Dr. Reddy’s Laboratories Inc., Reddy Cheminor S.A., Reddy Antilles N.V., Reddy Pharma Iberia, S.A., Reddy Pharma Italia S.p.A, Dr. Reddy’s Laboratories SA, Eurobridge Consulting B.V, OOO DRS LLC, Dr. Reddy’s New Zealand Limited, Aurigene Discovery Technologies (Malaysia) Sdn Bhd, Dr. Reddy’s Laboratories Louisiana LLC, Chirotech Technology Limited, Dr. Reddy’s Laboratories ILAC TICARET Limited SIRKETI, Dr. Reddy’s s.r.l., Dr. Reddy’s Pharma SEZ Limited, Dr. Reddy’s Laboratories International SA, Idea2Enterprises (India) Private Limited, Dr. Reddy’s Laboratories Romania-SRL, I-Ven Pharma Capital Limited, Dr. Reddy’s Venezuela, C.A., Dr. Reddy’s Laboratories Tennessee LLC, Dr Reddy’s Laboratories New York Inc, Dr. Reddy’s Laboratories, LLC, Ukraine, Dr. Reddy’s Laboratories Canada, Inc., OctoPlus N.V., OctoPlus Development B.V., OctoPlus Technologies B.V., OctoShare B.V., OctoPlus Sciences B.V., OctoPlus PolyActive Sciences B.V. and Chienna B.V.

Kunshan Rotam Reddy Pharmaceutical Company Limited (a joint venture) has been accounted under the equity method of accounting in accordance with IAS-31 ‘Interests in Joint Ventures’.

DRANU, LLC (a joint venture) has been consolidated in accordance with SIC-12 ‘Consolidation—Special Purpose Entities’.

During March 2013, the Company entered into an agreement with Nordion Inc., to settle its ongoing litigation for alleged breach of service obligations by Nordion Inc. during the years 2000 to 2004. As part of the settlement, the Company received a total amount of Rs. 12,200 lakhs (USD 22.5 million) from Nordion, out of which Rs. 1,084 lakhs (USD 2 million) is towards reimbursement of research and development cost and the same is recorded as reduction in such cost. The balance Rs. 11,116 lakhs (USD 20.5 million) is towards ‘lost profits’ and the same is recorded as part of other income.

Pursuant to the Company’s announcement of its public offer to acquire all of the equity shares of OctoPlus N V (‘OctoPlus’) at Euro 0.52 per share, the Company acquired and made settlement of the shares tendered under the offer on 15 Februrary 2013. The transaction was accounted under IFRS 3—Business Combinations. As of 31 March 2013, the Company had acquired 98.9% of the total shares of OctoPlus for a total consideration of Euro 27 million.

Based on the business performance and expected cash flows from its business in Italy, the Company carried out an impairment test of Dr. Reddy’s s.r.l’s cash-generating unit and recorded an impairment loss of goodwill and intangibles amounting to Rs. 1,809 lakhs and Rs. 93 lakhs respectively during the quarter ended 30 September 2012.

Consequent to the decline in expected cash flows of some of the products forming part of product related intangibles pertaining to Company’s Global Generics segment, the Company carried out an impairment test of such product related intangibles and recorded an impairment loss of Rs. 4,974 lakhs during the quarter ended 30 September 2012.

The audited results have been reviewed by the Audit Committee of the Board on 13 May 2013 and approved by the Board of Directors of the Company at their meeting held on 14 May 2013. The above financial results have been prepared from the consolidated financial statements, which are prepared in accordance with International Financial Reporting Standards and its interpretations (IFRS), as issued by the International Accounting Standards Board (IASB).

The Board of Directors at their meeting held on 14 May 2013 have recommended a final dividend of Rs. 15 per share subject to approval of shareholders.

The figures of the last quarter are the balancing figures between audited figures in respect of the full financial year and published year to date figures up to the third quarter of the relevant financial year. The figures up to the end of third quarter were only reviewed and not subject to audit.

The Securities and Exchange Board of India (SEBI) issued a circular, dated 5 April 2010 permitting listed entities having subsidiaries to voluntarily submit the Consolidated Financial Statements as per IFRS. Consequent to this, the Company has voluntarily prepared and published audited Consolidated Financial Statements as per IFRS for the year ended 31 March 2013 and 31 March 2012.


Statement of Assets and Liabilities (Consolidated)			All amounts in Indian Rupees lakhs
Particulars	As at		As at
	31.03.2013		31.03.2012
	(Audited)		(Audited)
ASSETS
Current assets
Cash and cash equivalents		51,363		79,788
Other current investments		169,630		101,733
Trade receivables		319,717		253,388
Inventories		215,995		193,524
Other current assets		100,425		71,091

Total current assets		857,130		699,524

Non-current assets
Property, plant and equipment		378,144		332,464
Goodwill		31,932		22,081
Other intangible assets		108,281		113,209
Investment in equity accounted investees		4,721		3,678
Other non-current investments		2,092		—
Other non-current assets		41,390		23,815

Total non-current assets		566,560		495,247

Total assets		1,423,690		1,194,771

LIABILITIES AND EQUITY
Current liabilities
Short-term borrowings		241,350		158,756
Trade accounts payable		118,618		95,024
Provisions		22,881		19,256
Other current liabilities		153,615		161,577

Total current liabilities		536,464		434,613

Non-current liabilities
Long-term borrowings		126,247		163,350
Provisions		474		470
Other non-current liabilities		29,460		21,908

Total non-current liabilities		156,181		185,728

Total liabilities		692,645		620,341

Equity
Equity share capital		8,492		8,478
Reserves and surplus		722,361		565,952
Non-controlling interest		192		—

Total equity		731,045		574,430

Total liabilities and equity		1,423,690		1,194,771

Audited financial results of Dr. Reddy’s Laboratories Limited (Standalone Information) prepared as per IGAAP


	Quarter ended						Year ended
Particulars	31.03.2013		31.12.2012		31.03.2012		31.03.2013		31.03.2012
Particulars	(Audited)		(Unaudited)		(Audited)		(Audited)		(Audited)
Total income from operations		236,248		215,844		178,830		843,401		673,970
Profit from ordinary activities before tax		55,600		47,645		35,586		175,313		125,918
Profit from ordinary activities after tax		37,815		34,664		21,179		126,547		91,236

Note:

The audited standalone financial results for the quarter and year ended 31 March 2013 are available on the Stock Exchange’s website: www.bseindia.com and www.nseindia.com and also on the Company’s website: www.drreddys.com.


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

Place: Hyderabad		Satish Reddy
Date: 14 May 2013		Vice Chairman & Managing Director

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	DR. REDDY’S LABORATORIES LIMITED
	(Registrant)

	By:	/s/ Sandeep Poddar
Date: May 16, 2013		Name:	Sandeep Poddar
		Title:	Company Secretary