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 an incorporated worldwide pharmaceutical organization, focused on giving reasonable and inventive drugs to more advantageous 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 plans and News Chemical Entities (NCEs). Reason and VALUES: Providing Affordable Medicines Our Global Generics business decreases medicate costs for people and governments by putting up conventional medications for sale to the public as right on time as could be expected under the circumstances, and making them accessible to however many patients as would be prudent. We advertise both conventional little atom medications and nonexclusive biopharmaceuticals. In business sectors with rules for endorsement, our Biologics business offers increasingly reasonable and similarly compelling nonexclusive biopharmaceuticals or biosimilars. We flexibly pharmaceutical fixings to other nonexclusive organizations through the API arm of our PSAI business, which adds to our objective of giving moderate edicine. We will keep on advancing moderateness in huge manners and work to extend our item offering of generics, concentrating on expanding access to items with critical hindrances to passage. We will keep on searching for new chances to take generics to more patients, in a joint effort wit h different organizations. Creating Innovative Medicines Despite the incredible 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 fundamental infection pathways, we create and popularize new details of affirmed items. We likewise grow new compound substances with improved and all around described wellbeing and adequacy profiles. We center our exploration around the remedial zones of agony, hostile to bacterials and metabolic scatters. Our Custom Pharmaceutical Services arm of our PSAI business helps trend-setter organizations get their exclusive drugs to patients quicker, by giving a scope of innovation stages and administrations. ABOUT THE BUSINESS: The social insurance needs of individuals worldwide can't be met by one organization alone. All in all anyway we can get new medications to the market a quick and productive way and give the structure squares of moderate drugs. Through our PSAI business, which contains the Active Pharmaceutical Ingredients (API) and Custom Pharmaceutical Services (CPS) organizations, we offer IP advantaged, fast item advancement and financially savvy fabricating administrations to our clients †conventional organizations and trailblazers. This permits us to help make great prescriptions accessible to more individuals around the globe. The center qualities of our PSAI business are the cutting edge framework, assets and abilities we can offer to our clients: †¢Large and various item portfolio †¢Eight FDA-investigated plants and three innovation communities †¢World class science aptitude †¢Robust, huge scope fabricating capacities †¢Intellectual Property (IP) driven item advancement for opportunity to work †¢Total, consistent flexibly chain the board PARTNERSHIP PHILOSPHY: At the center of each effective association is an extraordinary relationship dependent on trust and shared regard. As we progress in the direction of satisfying our center reason we share your desires. We perceive and grasp the way that our accomplices are a center segment of this procedure. We comprehend that associations are effective 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 common organization victories are at the very heart of our business. From our first gathering through item dispatch and past, we remain behind our faith in evident association subsequently joining our qualities and sharing our triumphs. Dr. Reddy's solidly accepts that the correct collusions can contribute fundamentally to the accomplishment of our accomplices just as to our own methodology and reasonable development. â€Å"At Dr. Reddy’s we mean to cultivate a culture of building reasonable, successful, and commonly beneficialâ€winningâ€collaborations. The significance that we place on building winning coordinated efforts is prove mostly by the early and generous contribution of senior administration. Along these lines, we accomplish fast dynamic and the portion of fundamental assets to make progress. † G V Prasad Vice Chairman and CEO Straightforward and Simple procedure: Clarity of thought, Speed of execution, Flexibility, imagination, and straightforwardness are basic parts of our exchange and exchange process. As no two arrangements are the equivalent, we work with expected accomplices to structure bargains through modified methodologies that permit the two accomplices to use special capacities 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 fast dynamic from introductory screening to execution. As an organization that assesses 100+ business advancement openings at whatever year (a large number of which come to conclusion), we esteem the time and assets our potential accomplices resolve to investigate and finish any expected association. Dr. Reddy’s stresses a straightforward and community arrangement 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. Supported relationship dependent on trust and shared regard: Our hearty coalition the executives standards and practices permit fruitful execution of joint activities. Dr. Reddy’s is focused on guaranteeing that our associations succeed and prosper. 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 Complete Assets74656477. 85899. 45274. 1 Contingent Liabilities2488. 22412. 21977. 93325. 8 Book Value353. 481087348. 382701310. 190024284. 143876 Adjusted Book Value353. 48108