Press Presentation q2 Fy 20

Press Presentation – Q2 FY20
1 | November 01, 2019 | Q2 FY20 Press Meet

Safe Harbor Statement
This presentation contains forward-looking statements and information that involve risks, uncertainties and assumptions. Forward-looking statements are all statements
that concern plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements that are other than statements of
historical fact, including, but not limited to, those that are identified by the use of words such as “anticipates”, “believes”, “estimates”, “expects”, “intends”, “plans”,
“predicts”, “projects” and similar expressions. Risks and uncertainties that could affect us include, without limitation:
 General economic and business conditions in India and other key global markets in which we operate;
 The ability to successfully implement our strategy, our research and development efforts, growth & expansion plans and technological changes;
 Changes in the value of the Rupee and other currency changes;
 Changes in the Indian and international interest rates;
 Allocations of funds by the Governments in our key global markets;
 Changes in laws and regulations that apply to our customers, suppliers, and the pharmaceutical industry;
 Increasing competition in and the conditions of our customers, suppliers and the pharmaceutical industry; and
 Changes in political conditions in India and in our key global markets.
Should one or more of such risks and uncertainties materialize, or should any underlying assumption prove incorrect, actual outcomes may vary materially from those
indicated in the applicable forward-looking statements.
For more detailed information on the risks and uncertainties associated with the Company’s business activities, please see the company’s annual report filed in Form 20-F
with the US SEC for the fiscal year ended March 31, 2019 and quarterly financial statements filed in Form 6-K with the US SEC for the quarters ended Sep 30, 2018,
December 31, 2018, June 30, 2019 and our other filings with US SEC. Any forward-looking statement or information contained in this presentation speaks only as of the
date of the statement. We are not required to update any such statement or information to either reflect events or circumstances that occur after the date the statement
or information is made or to account for unanticipated events.

Financial highlights Rs. Cr
Highest ever Revenues & PAT in a quarter
Q2 FY20 QoQ Gr% YoY Gr%
Revenues* 4,801 25% 26%
EBITDA** 1,434 26% 66%
PBT** 766 -10% 33%
PAT*** 1093 65% 117%
*Including recognized revenue of PP Neuro brands

**Including related costs of PP Neuro brands, impairment charge of Rs. 355 cr on three product related intangibles & certain other one-offs
***Net Tax is a benefit due to recognition of deferred tax assets of Rs. 5.2 billion, primarily related to MAT credit

P&L Metrics Rs. Cr
Gross margin SG&A Expenses R&D Expenses
1,678
2,762
412
1,237 361 366

1,207
2,090
1,986
55.0% 51.7% 57.5% 32.6% 31.4% 34.9% 10.8% 9.4% 7.6%
Q2 Q1 Q2 Q2 Q1 Q2 Q2 Q1 Q2
FY19 FY20 FY20 FY19 FY20 FY20 FY19 FY20 FY20
Includes impairment charge of Rs. 355 cr

Adjusted for PP Neuro & certain other one-
on three product related intangibles & R&D expenses @ 8.9% of adjusted revenues
offs the normalized Gross Margin is 51.5%
certain other one-offs

North America
Revenues
Q2 FY20 Rs. 1,426 cr  Revenue declined on account of price erosion, voluntary recall of
ranitidine and temporary disruption in supplies due to logistics
YoY QoQ Dc
flat (13)% issues
 8 new products launched during the quarter - Carboprost,

Ramelteon, Fosaprepitant, Pregabalin, Vigabatrin, Docetaxel
160mg, Bupropion SR and OTC Guaif / Psuedo
 U.S. Generics filing update:
 1 ANDA filed with the US FDA in this quarter
 99 pending approval (96 ANDAs + 3 NDAs)
 55 Para IV filings and we believe 31 have first to file status

India
Revenues
 Growth driven by new products, improved realizations and volume

Q2 FY20 Rs. 751 cr traction in base business
YoY Gr QoQ Gr  We launched 5 brands during the quarter: Allerku, IDRT, IMDRT,
9% 8%
Ultra Nise & Versavo
 As per IQVIA, Dr. Reddy’s growth better than IPM on both MQT &
MAT basis
IQVIA IMS growth rates
Sep 2019 MQT MAT
IPM 13.1% 10.5%
Dr. Reddy’s 13.4% 12.7%

Emerging Markets
Revenues
₹ Cr
Region Q2’20 YoY Gr QoQ Gr
Q2 FY20 Rs. 828 cr
Russia 410 8% 4%
YoY Gr QoQ Gr CISR 167 16% 39%
10% 13%
RoW 250 11% 17%
EM 828 10% 13%
 Russia: Growth largely driven by increase in volumes and better realizations

in some of the key molecules
 CISR: Growth driven by new products launched in this quarter & improved
realizations in base business
 RoW: YoY growth aided by new products & volume traction in base business

Other Businesses ₹ Cr
Europe PSAI
YoY Gr QoQ Gr YoY Gr QoQ Gr

44% 15% 18% 57%
276 711
240
603
191
454
Q2 Q1 Q2 Q2 Q1 Q2
FY19 FY20 FY20 FY19 FY20 FY20
Growth aided by new products and volume Growth driven largely by increase in volumes of
traction, partly offset by lower realizations our existing products

Capex, R&D & Free cash flows
R&D expenses (Rs. Cr) Capex (Rs. Cr)
727 1,202 1,228

1,783 1,955 1,826 1,561 925 214
366 696
108
361 106
FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20
Q1 Q2 Q1 Q2
Free cash flow (Rs. Cr) Net Debt / Equity
1,724
2,827 0.26
874
2,165
0.13
794 850 0.09 0.01
605 0.04
FY16 FY17 FY18 FY19 FY20 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19
FCF as above is before acquisition related pay-outs Q1 Q2
Key Priorities
Achieve market
Resolution of Build healthy
leading growth
CTO 6 Warning pipeline of
across
Letter products
businesses
Drive
Continue with
innovation to
the productivity
fuel future
improvements
growth


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Press Presentation – Q2 FY20

1 | November 01, 2019 | Q2 FY20 Press Meet

2 | November 01, 2019 | Q2 FY20 Press Meet

Highest ever Revenues & PAT in a quarter

Q2 FY20 QoQ Gr% YoY Gr%

Revenues* 4,801 25% 26%

EBITDA** 1,434 26% 66%

PBT** 766 -10% 33%

PAT*** 1093 65% 117%

*Including recognized revenue of PP Neuro brands

3 | November 01, 2019 | Q2 FY20 Press Meet

Gross margin SG&A Expenses R&D Expenses

1,237 361 366

55.0% 51.7% 57.5% 32.6% 31.4% 34.9% 10.8% 9.4% 7.6%

Includes impairment charge of Rs. 355 cr

4 | November 01, 2019 | Q2 FY20 Press Meet

 8 new products launched during the quarter - Carboprost,

 U.S. Generics filing update:

 1 ANDA filed with the US FDA in this quarter

 99 pending approval (96 ANDAs + 3 NDAs)

 55 Para IV filings and we believe 31 have first to file status

5 | November 01, 2019 | Q2 FY20 Press Meet

 Growth driven by new products, improved realizations and volume

IQVIA IMS growth rates

Sep 2019 MQT MAT

IPM 13.1% 10.5%

Dr. Reddy’s 13.4% 12.7%

6 | November 01, 2019 | Q2 FY20 Press Meet

EM 828 10% 13%

 Russia: Growth largely driven by increase in volumes and better realizations

7 | November 01, 2019 | Q2 FY20 Press Meet

YoY Gr QoQ Gr YoY Gr QoQ Gr

8 | November 01, 2019 | Q2 FY20 Press Meet

727 1,202 1,228

Free cash flow (Rs. Cr) Net Debt / Equity

10 | November 01, 2019 | Q2 FY20 Press Meet

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