Financial Outlook on Dr. Reddy’s Laboratories

Universal Finance Project On â€Å"Financial point of view toward Dr. Reddy’s Laboratories Ltd. † Submitted to: Prof. S. K. Gupta Submitted by: Date: 31 Dec. 2011 SOURAV KUMAR 2K10IB30 PGDM IB 2010-2012 ASIA PACIFIC INSTITUTE OF MANAGEMENT 3 and 4, Institutional Area, Jasola, New Delhi 110025 INTRODUCTION Set up in 1984, Dr. Reddy's Laboratories Ltd. (NYSE: RDY) is a coordinated worldwide pharmaceutical organization, focused on giving moderate and creative meds to more beneficial lives. Through its three organizations †Pharmaceutical Services and Active Ingredients, Global Generics and Proprietary Products †Dr. Reddy’s offers an arrangement of items and administrations including Active Pharmaceutical Ingredients (APIs), Custom Pharmaceutical Services (CPS), generics, biosimilars, separated definitions and News Chemical Entities (NCEs). Reason and VALUES: Providing Affordable Medicines Our Global Generics business decreases tranquilize costs for people and governments by offering nonexclusive medications for sale to the public as ahead of schedule as could be expected under the circumstances, and making them accessible to whatever number patients as would be prudent. We showcase both nonexclusive little particle medications and conventional biopharmaceuticals. In business sectors with rules for endorsement, our Biologics business offers progressively reasonable and similarly viable conventional biopharmaceuticals or biosimilars. We flexibly pharmaceutical fixings to other conventional organizations through the API arm of our PSAI business, which adds to our objective of giving moderate edicine. We will keep on advancing reasonableness in critical manners and work to extend our item offering of generics, concentrating on expanding access to items with huge hindrances to section. We will keep on searching for new chances to take generics to more patients, as a team w ith different organizations. Creating Innovative Medicines Despite the extraordinary advances of clinical science, there are as yet numerous neglected clinical needs. Our Proprietary Products organizations address a portion of these neglected clinical needs, by creating and bringing to advertise new medications. Through advancement in science and innovation, joined with a profound comprehension of basic illness pathways, we create and market new details of endorsed items. We likewise grow new substance elements with improved and all around described wellbeing and adequacy profiles. We center our examination around the helpful territories of agony, against bacterials and metabolic clutters. Our Custom Pharmaceutical Services arm of our PSAI business helps pioneer organizations get their exclusive meds to patients quicker, by giving a scope of innovation stages and administrations. ABOUT THE BUSINESS: The medicinal services needs of individuals worldwide can't be met by one organization alone. Altogether anyway we can get new medications to the market a quick and proficient way and give the structure squares of moderate prescriptions. Through our PSAI business, which contains the Active Pharmaceutical Ingredients (API) and Custom Pharmaceutical Services (CPS) organizations, we offer IP advantaged, expedient item advancement and financially savvy producing administrations to our clients †nonexclusive organizations and pioneers. This permits us to help make great medications accessible to more individuals around the globe. The center qualities of our PSAI business are the best in class framework, assets and aptitudes we can offer to our clients: †¢Large and various item portfolio †¢Eight FDA-assessed plants and three innovation places †¢World class science ability †¢Robust, enormous scope fabricating capacities †¢Intellectual Property (IP) driven item advancement for opportunity to work †¢Total, consistent gracefully chain the executives PARTNERSHIP PHILOSPHY: At the center of each fruitful association is an extraordinary relationship dependent on trust and common regard. As we progress in the direction of satisfying our center reason we share your goals. We perceive and grasp the way that our accomplices are a center part of this technique. We comprehend that organizations are fruitful when advantages collect to the two gatherings. They are based on a mutual vision with very much characterized and settled upon objectives. We additionally realize that that the partners’ thinking and interests may not generally be indistinguishable, yet that we share the equivalent goalâ€a effective item. Our mutual association triumphs are at the very heart of our business. From our first gathering through item dispatch and past, we remain behind our confidence in obvious association in this manner joining our qualities and sharing our victories. Dr. Reddy's solidly accepts that the correct unions can contribute essentially to the achievement of our accomplices just as to our own methodology and reasonable development. â€Å"At Dr. Reddy’s we expect to encourage a culture of building reasonable, powerful, and commonly beneficialâ€winningâ€collaborations. The significance that we place on building winning coordinated efforts is prove mostly by the early and considerable inclusion of senior administration. Along these lines, we accomplish fast dynamic and the distribution of essential assets to make progress. † G V Prasad Vice Chairman and CEO Straightforward and Simple procedure: Clarity of thought, Speed of execution, Flexibility, innovativeness, and straightforwardness are basic segments of our exchange and exchange process. As no two arrangements are the equivalent, we work with expected accomplices to structure bargains through redid approaches that permit the two accomplices to use interesting abilities and resources so as to accomplish shared objectives. A basic and smoothed out procedure to advance our joining forces conversations and a level hierarchical structure encourages quick dynamic from starting screening to execution. As an organization that assesses 100+ business improvement openings at whatever year (huge numbers of which come to conclusion), we esteem the time and assets our potential accomplices resolve to investigate and finish any likely association. Dr. Reddy’s stresses a straightforward and communitarian exchange procedure and brief dynamic. We bring a notoriety for acting quickly and being adaptable. We will work with you to agree with which you will be agreeable and that will head us the correct way toward shared achievement. Continued relationship dependent on trust and shared regard: Our powerful coalition the board standards and practices permit fruitful execution of joint activities. Dr. Reddy’s is focused on guaranteeing that our organizations succeed and thrive. Quarterly Results: Quarterly Results of Dr Reddys Laboratoriesâ€â€â€â€â€â€- in Rs. Cr. â€â€â€â€â€â€- Sep '11Jun '11Mar '11Dec '10Sep '10 Sales Turnover1,646. 981,696. 961,329. 161,389. 761,296. 88 Other Income13. 0555. 5429. 1137. 2152. 35 Total Income1,660. 031,752. 501,358. 271,426. 971,349. 23 Total Expenses1,390. 181,085. 201,113. 741,046. 631,022. 98 Operating Profit256. 80611. 76215. 42343. 13273. 0 Profit On Sale Of Assetsâ€â€â€- Profit On Sale Of Investmentsâ€â€â€- Gain/Loss On Foreign Exchangeâ€â€â€- VRS Adjustmentâ€â€â€- Other Extraordinary Income/Expensesâ€â€â€- Total Extraordinary Income/Expensesâ€â€â€- Tax On Extraordinary Itemsâ€â€â€- Net Extra Ordinary Income/Expensesâ€â€â€ - Gross Profit269. 85667. 30244. 53380. 34326. 25 Interest15. 7815. 244. 250. 540. 13 PBDT254. 07652. 06257. 78379. 80326. 12 Depreciation73. 4068. 9365. 5063. 8961. 35 Depreciation On Revaluation Of Assetsâ€â€â€- PBT180. 67583. 13192. 28315. 91264. 77 Tax42. 17129. 0826. 4153. 1444. 57 Net Profit138. 50454. 05165. 87262. 77220. 20 Prior Years Income/Expensesâ€â€â€- Depreciation for Previous Years Written Back/Providedâ€â€â€- Dividendâ€â€â€- Dividend Taxâ€â€â€- Dividend (%)â€â€â€- Earnings Per Share8. 1726. 799. 8015. 5313. 01 Book Valueâ€â€â€- Equity84. 7684. 7484. 6384. 6184. 60 Reservesâ€â€â€- Face Value5. 005. 005. 005. 005. 00 ___________________________________________ Balance Sheet of the organization (yearly): â€â€â€â€â€â€- In Rs. Cr. â€â€â€â€â€â€â€â€â€â€ DescriptionMar-11Mar-10Mar-09Mar-08 SOURCES OF FUNDS: Share Capital84. 684. 484. 284. Offer Warrants and Outstanding39. 333. 935. 532. 5 Total Reserves5896. 35796. 35139. 44695. 2 Shareholder's Funds6020. 25914. 65259. 14811. 8 Secured Loans0. 70. 82. 63. 4 Unsecured Loans1444. 1562. 4637. 7458. 9 Total Debts1444. 8563. 2640. 3462. 3 Total Liabilities74656477. 85899. 45274. 1 APPLICATION OF FUNDS : Gross Block30252425. 72157. 31750. 2 Less: Accumulated Depreciation13341110. 1946. 5762. 8 Less: Impairment of Assets Net Block16911315. 61210. 8987. 4 Lease Adjustment A/c Capital Work in Progress570. 4745. 4411. 2246. 5 Pre-employable Expenses pending Assets in travel Investments24622555. 1703. 81930. 6 Current Assets, Loans and Advances Inventories1063. 2897. 4735. 1640. 9 Sundry Debtors1770. 51060. 51419. 7897. 7 Cash and Bank66. 2368384. 4536. 7 Other Current Assets1. 80. 62. 8 Loans and Advances2606. 42048. 718401250. 6 Total Current Assets5506. 34376. 44379. 83328. 7 Less: Current Liabilities and Provisions Current Liabilities1440. 71447. 51050. 2680. 9 Provisions1223. 2992. 2665. 6451. 3 Total Current Liabilities2663. 92439. 71715. 81132. 2 Net Current Assets2842. 41936. 726642196. 5 Miscellaneous Expenses not discounted Deferred Tax Assets/Liabilities-100. 8-75-90. 4-86. 9 Absolute Assets74656477. 85899. 45274. 1 Contingent Liabilities2488. 22412. 21977. 93325. 8 Book Value353. 481087348. 382701310. 190024284. 143876 Adjusted Book Value353. 48108